Maryland’s unemployment rate fell to 3.9 percent in September 2026, down from 4.1 percent in August, according to preliminary figures from the U.S. Bureau of Labor Statistics (BLS). At the same time, the number of jobs on Maryland employers’ payrolls was lower than a year earlier, so the drop in unemployment is a more mixed signal than it first appears.
This article walks through the state’s latest numbers, explains why a falling jobless rate and shrinking payrolls can happen together, and shows which industries moved. All figures are preliminary and seasonally adjusted, as of the September 2026 data.
What did the latest Maryland numbers show?
The BLS reported on October 20, 2026, that Maryland’s unemployment rate was 3.9 percent in September, compared with 4.3 percent in September 2025. The national rate was 4.2 percent in the same release. Maryland was one of five states with a statistically significant monthly decrease; the others were New Hampshire, Florida, Nevada and Pennsylvania. The agency reported no states with significant monthly increases.
Quick facts
| Measure | Detail |
|---|---|
| Maryland unemployment rate, Sept. 2026 (preliminary) | 3.9% |
| Maryland rate, Aug. 2026 | 4.1% |
| Maryland rate, Sept. 2025 | 4.3% |
| U.S. rate, Sept. 2026 | 4.2% |
| Total nonfarm jobs, Sept. 2026 | 2,794.3 thousand |
| Total nonfarm jobs, Aug. 2026 | 2,803.1 thousand |
| 12-month change in nonfarm jobs | -0.5% |
| Highest state rate | District of Columbia, 5.6% |
| Lowest state rate | South Dakota, 2.0% |
How has the rate moved since spring?
The decline has been steady rather than sudden. BLS data show Maryland’s unemployment rate at 4.4 percent in April and May 2026, then 4.3 percent in June, 4.2 percent in July, 4.1 percent in August and 3.9 percent in September.
| Month (2026) | Unemployment rate | People unemployed (thousands) |
|---|---|---|
| April | 4.4% | 142.5 |
| May | 4.4% | 142.0 |
| June | 4.3% | 139.0 |
| July | 4.2% | 135.3 |
| August | 4.1% | 129.8 |
| September (prelim.) | 3.9% | 124.6 |
Illustrative arithmetic: the number of unemployed Marylanders fell from 142.5 thousand in April to 124.6 thousand in September, a decline of 17.9 thousand people. Dividing 124.6 thousand by the September labor force of 3,201.6 thousand gives about 3.9 percent, matching the published rate.
Why can unemployment fall while payrolls shrink?
The unemployment rate and the payroll count come from two different measurements. The unemployment rate is built from a survey of households and statistical models for states. It counts people who are out of work and actively looking as a share of the labor force. The payroll count comes from a survey of employers and counts jobs on their books, so it also includes people who live in other states but work in Maryland.
Because the rate is a share of the labor force, it can fall for two reasons: more people find work, or fewer people are counted as looking for it. In Maryland’s case, both appear in the data. Employment, the count of employed residents, rose from 3,064.9 thousand in April to 3,076.9 thousand in September, an increase of 12.0 thousand. The civilian labor force, however, slipped from 3,207.4 thousand to 3,201.6 thousand, a decrease of 5.8 thousand.
Put simply, about 17.9 thousand fewer residents were counted as unemployed, and roughly two-thirds of that change came from more residents being counted as employed (12.0 of 17.9), with the remainder reflecting a smaller labor force (5.8 of 17.9, rounding aside). The BLS data alone does not explain why the labor force shrank, so that part should not be over-interpreted.
What happened to Maryland payrolls?
Total nonfarm employment in Maryland was 2,794.3 thousand in September, compared with 2,803.1 thousand in August, a one-month decline of 8.8 thousand jobs. The July figure was 2,814.4 thousand, so payrolls are down 20.1 thousand from July to September. Over twelve months, total nonfarm employment was down 0.5 percent, compared with a 0.3 percent decline in August and a 1.1 percent decline in April.
That means the year-over-year picture has improved since spring, but the latest two months moved the wrong way. Month-to-month figures for a single state are preliminary and are often revised, so a one-month dip is a prompt to keep watching rather than a verdict. Readers who want a national comparison can see our coverage of the September national jobs report, which also showed modest hiring.
Which industries are growing and which are shrinking?
The industry detail shows a divided state economy. Using 12-month percentage changes for September from the BLS:
- Education and health services: up 1.2 percent, to 508.3 thousand jobs, though that is down from a 2.6 percent gain in July.
- Professional and business services: up 0.7 percent, to 467.9 thousand jobs.
- Leisure and hospitality: up 1.3 percent, to 271.7 thousand jobs.
- Manufacturing: up 1.1 percent, to 110.8 thousand jobs.
- Trade, transportation and utilities: down 3.1 percent, to 448.1 thousand jobs. This sector includes warehousing and transportation, the group most connected to the Port of Baltimore, though the BLS table does not break out port jobs.
- Government: down 1.5 percent, to 527.4 thousand jobs.
- Construction: down 0.8 percent, to 163.6 thousand jobs.
- Financial activities: down 1.6 percent, to 137.7 thousand jobs.
- Information: down 3.5 percent, to 33.0 thousand jobs.
Government remains the single largest sector at 527.4 thousand jobs, followed by education and health services and professional and business services. The state’s heavy federal presence, described in our guide to Maryland’s federal footprint, helps explain why government and professional services carry such weight. The BLS table does not say why government employment is lower than a year ago, and this article does not speculate on a cause.
How does Maryland compare with other states?
At 3.9 percent, Maryland sat below the national rate of 4.2 percent in September. The BLS reported that the District of Columbia had the highest rate among states and D.C., at 5.6 percent, and South Dakota the lowest, at 2.0 percent. Over the year, 20 states and D.C. had statistically significant decreases in their unemployment rates, seven states had increases and 23 showed little change.
So Maryland’s improvement is part of a broader pattern in which more states saw rates fall than rise over the past year. It is still well short of the best-performing states, and the gap between the state’s rate and its payroll trend is what sets Maryland apart.
What should employers and job seekers watch next?
Three things are worth tracking. First, the next monthly state release will show whether the September drop holds or is revised. Second, the Maryland Department of Labor publishes labor market information for the state on its website, which is a place for local detail beyond the federal tables. Third, the monthly figures can be combined with other indicators: for example, Maryland’s minimum wage rules matter for employers in the leisure and hospitality sector, which added jobs over the year, and the state’s business application data offers a view of new-firm formation.
For job seekers, the industry split suggests that hiring conditions differ widely by field. For employers, a lower unemployment rate with a smaller labor force can mean a tighter pool of available workers, although the data here does not measure hiring difficulty directly.
What the September numbers add up to
Maryland’s labor market improved on one measure and softened on another in September 2026. The unemployment rate reached 3.9 percent, its lowest reading since at least April, while total nonfarm employment stood 0.5 percent below its level a year earlier. With preliminary figures subject to revision and industry results pointing in different directions, the safest reading is of a state whose jobless count is falling but whose job growth has not yet turned positive.
This article is general information about labor market data and is not financial or investment advice.
Sources: U.S. Bureau of Labor Statistics; Maryland Department of Labor
