Maryland’s federal employment declined by an estimated 10,300 positions in October and November 2025 combined, according to new data released January 8, 2026, by the U.S. Bureau of Labor Statistics. The losses mark the first monthly figures to reflect the impact of “fork in the road” deferred resignations that took effect October 1, 2025. Total federal job reductions in Maryland since January 2025 reached 24,900, the highest of any state.
The decline coincides with actions by the Trump-Vance Administration to reduce the federal workforce, including mass layoffs and voluntary resignation incentives aimed at cutting nearly 300,000 positions nationwide. In October 2025, the administration oversaw the longest federal government shutdown in history, affecting Maryland’s 269,000 federal civilian employees. Maryland’s federal workforce, excluding active-duty military, generates $26.9 billion in annual earnings and accounts for 6 percent of state employment and 10 percent of total wages. Federal spending in Maryland exceeds $150 billion annually through wages, retirement income, contracts, grants and direct payments.
Private sector employment in Maryland fell by an estimated 4,400 jobs in October and November combined. Bureau of Labor Statistics adjustments account for seasonal hiring patterns, and data along with unemployment insurance claims indicate the drop stemmed from weaker-than-expected seasonal hiring rather than widespread layoffs. Maryland’s overall unemployment rate rose from 3.8 percent in September to 4.2 percent in November, remaining below the national average of 4.6 percent.
The Moore-Miller Administration reported that Maryland added 94,000 jobs in the private sector and state-local government since taking office, growing those sectors at a 3.6 percent rate compared to 3.2 percent nationwide. Health care and social assistance led growth, adding 1,400 jobs in October-November, 12,300 over the past year and 51,200 during the administration.
The five sectors with the largest estimated gains in October and November 2025 were health care and social assistance (1,400 jobs), private educational services (600), professional, scientific and technical services (600), wholesale trade (600) and accommodation and food services (500). The largest losses occurred in government (federal, state and local combined, -6,500 jobs), administrative and support and waste management and remediation (-4,100), transportation, warehousing and utilities (-2,800), retail trade (-1,300) and arts, entertainment and recreation (-1,100).
In response to federal workforce reductions, the Moore-Miller Administration offers support for affected Marylanders through 33 American Job Centers and a specialized Professional Outplacement Assistance Center providing career guidance, résumé workshops, mock interviews, skills assessments, job search strategies and networking. Additional resources include career transition information, a weekly virtual workshop for former federal employees and contractors attended by 2,000 workers, job fairs, the Federal Worker Emergency Loan Program for those facing financial hardship, unemployment insurance, veteran resources, legal support and assistance with health coverage, housing, food and other needs. Details are available at response.maryland.gov/federalpublicservants.
The federal employment decline represents a significant shift for Southern Maryland, where federal installations including Naval Air Station Patuxent River, the Patuxent River Naval Air Systems Command and related contractors employ thousands in St. Mary’s, Calvert and Charles counties. These areas rely heavily on federal wages and contracts, making workforce changes a key economic concern for the region.