Maryland Economic and Fiscal Quarterly Snapshot Q1 2026

1. Employment Indicators

This section examines job growth, industry growth trends, unemployment, labor force participation, and wage data in Maryland compared to the U.S. in order to illustrate employment trends in Maryland over time, with a focus on the most recent quarter.

• As of the latest data (March 2026), Maryland has had the largest year-over-year decrease in total employment of all states (49,900 jobs lost between March 2025 and March 2026) in large part attributable to federal government job cuts that occurred throughout 2025 by the Trump Administration. Since January 2025, Maryland has lost 29,100 federal jobs, more than any other state apart from California, which lost slightly more (29,600).
• Maryland had small employment gains in Q1 2026, adding 6,800 jobs (+0.2% increase) since the end of 2025. This mirrors national trends: the U.S. added 189,000 jobs (+0.1% increase) in Q1.

Figure 1A: Total Employment in Maryland, January 2022 to March 2026

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Source: U.S. Bureau of Labor Statistics (BLS) Current Employment Statistics (CES)
Note: Total is total nonfarm employment

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• Figure 1B presents the percent change in number of jobs in each month of Q1 2025 (January, February, March) to Q1 2026.
• On average, monthly employment in Maryland in Q1 2026 was 1.7% lower than in Q1 2025. In Q1 2025, there was an average of 2.84 million jobs compared to 2.79 million in Q1 2026.
• Nationally, Q1 2026 employment is slightly higher (0.1% or +230,000 jobs) than in Q1 of 2025.

Figure 1B: Year-over-year Percent Change in Employment by Month, Q1 2026

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Source: U.S. Bureau of Labor Statistics (BLS) Current Employment Statistics (CES)

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• Federal government makes up 57% of the state's total job losses from Q1 2025 to Q1 2026. There was an average of 28,000 fewer federal jobs in Maryland in Q1 2026 than in Q1 2025, a 17% decrease.
• Federal government spending reductions have also contributed to job losses through a decrease in hiring by federal contractors. This is reflected in the decrease in employment in the professional, scientific, and technical service industry, which includes many government contractors. As of March 2026, employment in this industry is down 11,500 jobs since January 2025.
• The other outlier industry in terms of growth trends from Q1 2025 to Q1 2026 is health care and social assistance, which added about 5,000 jobs. (Read more in the Comptroller's latest report: Maryland Industry Analysis: Healthcare and the Economy, April 2026. (PDF)) Most other industries have been flat.

Figure 1C: Employment by Industry Sector in Maryland, January 2022 to March 2026

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Source: U.S. Bureau of Labor Statistics (BLS) Current Employment Statistics (CES)

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• The unemployment rate has increased in Maryland over the past year, from 3.6% in Q1 2025 to 4.3% in Q1 2026.
• Historically, the unemployment rate has been lower in Maryland compared to the U.S. Recently, it has increased to meet the national average.

Figure 1D: Unemployment Rate, January 2022 to March 2026

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• The labor force participation rate (LFPR)* has decreased by nearly one percentage point in Maryland over the past year, from 64.8% in Q1 2025 to 64% in Q1 2026.
• While still higher than the national rate, Maryland’s LFPR has not rebounded from the pandemic. Maryland’s LFPR remains five percentage points below pre-pandemic levels (69% in February 2020 compared to 64% as of March 2026), while nationally the LFPR is only 1.4 percentage points below pre-pandemic levels (63.3% to 61.9%).

* The percentage of the working-age population that is either employed or actively looking for work.

Figure 1E: Labor Force Participation Rate, January 2019 to March 2026

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Source: U.S. Bureau of Labor Statistics (BLS) Local Area Unemployment Statistics (LAUS)
Note: Data is not available for October 2025 due to the government shutdown.

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• Wage data demonstrates that average hourly earnings for private sector jobs have been increasing at a faster rate in the U.S. than in Maryland.
• In January 2022, Maryland average hourly earnings were $35, compared to $32 in the U.S. By January of 2026, both Maryland and the U.S. were right around $37.
• Historically, average earnings in Maryland have been higher than the national average. This changed in early 2024.

Figure 1F: Average Hourly Earnings, January 2022 to March 2026

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Source: U.S. Bureau of Labor Statistics (BLS) Current Employment Statistics (CES)
Note: Only includes private jobs
Earnings: BLS defines earnings as money received for work or services performed during a specific period; it includes hourly and weekly earnings of wage and salary workers. All self-employed people are excluded. These are earnings before taxes and other deductions and include any overtime pay, commissions, or tips usually received. This differs from other income measures like median household income which includes all types of income (for all household members), not just wages or salary from an employer.

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2. Housing and Cost of Living Indicators

This section analyzes home sale and rent prices in Maryland, building permits (as a proxy for new housing units being built in the state), and inflation trends. All are important indicators of affordability. Maryland typically ranks in the top 10 for states with the highest cost of living.

• As of March 2026, the typical market home value in Maryland is $430,000 compared to $368,000 for the U.S.
• From Q1 2025 to Q1 2026, home sale prices in Maryland increased by less than 1%. This represents a substantial slowdown in price growth after several years of high growth starting in 2020.
• Still, less than 50% of Marylanders can afford a home at the current median price point. In 2000, 75% of Marylanders could afford the median-priced home. [Read more in the Comptroller’s October 2025 report: State of the Economy Series: Housing & The Economy (PDF).]

Figure 2A: Typical Market Value of a Home in Maryland, January 2019 to March 2026

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Source: Zillow Home Value Index (ZHVI). ZHVI measures the typical market home value across a region for all home types based on their “Zestimate” methodology and it is similar to median sales price but accounts for homes both on and off the market.

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• Typical market rents in Maryland range from $1,050 in Allegany County to around $2,500 in Charles and Queen Anne's Counties as of March 2026. Rents are generally higher in the counties in the National Capital Region such as in Charles, Montgomery, and Howard Counties. Some Eastern Shore counties, including Queen Anne's, Worcester, and Talbot, also have high rents relative to the state average.
• The Urban Institute used Zillow's county data to calculate a weighted average monthly rent for the state, which was $1,970 for January 2026 (latest available data).
• Across the state, about half (48%) of renters spend more than 30% of their income on rent meaning that nearly half of Maryland renters are considered housing cost burdened according to the threshold set by U.S. Department of Housing and Urban Development (HUD).

Figure 2B: Typical Market Rate Rental for Counties in Maryland, March 2026

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Source: Source: Zillow Observed Rent Index (ZORI); ZORI measures the typical market rate for rental housing stock, including homes and apartments. Data is not available for Garrett or Dorchester Counties as of March 2026.

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• In January 2026 (most recent available data), there were 1,484 total residential permits issued across Maryland, which included 930 multifamily units and 534 single-family units. This is about the same amount as January 2025 (1,400 permits issued), however, in 2025 there were more single-family unit permitted (888) than multifamily units (512).
• In 2025, there were a total of 13,233 housing permits issued – lower than in prior years and significantly lower than the level needed to address the housing shortage. As discussed in the Comptroller's recent housing report (PDF). Maryland needs to permit and build about 30,000 units each year to meet projected demand by 2045.
• Housing supply is limited to two months of inventory in Maryland according to the Maryland Association of Realtors (PDF), below the “healthy” level of for-sale inventory of about six months.

Figure 2C: Annual Residential Building Permits Issued in Maryland, 2021 to 2025

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Source: U.S. Census Bureau, Building Permits Survey (BPS)

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The BLS Consumer Price Index (CPI) measures the average change in prices over time in a fixed market basket of goods and services for all urban consumers nationwide and for certain metro areas. The CPI reports for Washington, D.C. and Baltimore metro areas are published bi-monthly and are on different release schedules, meaning the most recent data available (at the time this was written) for the D.C. metro is March and for the Baltimore metro is April. This data is not seasonally adjusted.

• As of April 2026, inflation for all items in the Baltimore metro area increased by 3.6% from April 2025, slightly below the nationwide average of 3.8% in that period.
• As of March 2026, inflation for all items in the Washington, D.C. metro area was up 3% since March 2025, slightly below the national average of 3.3% in that period.
• However, prices of certain goods and services categories in these Maryland metros have increased more than the national average. For example, both the Washington and Baltimore metro areas have had higher inflation in housing costs (3.9% and 4.4%, respectively, compared to 3.6% for the nationwide city average), based on the most recently available data.
• Gasoline has experienced the highest inflation rates over the past year, with 28% in both the Baltimore metro and for the U.S. city average (from April 2025 to April 2026) and 19% in the Washington metro (from March 2025 to March 2026).

Figure 2D: Inflation by Category for Urban Consumers, 2026

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Source: Bureau of Labor Statistics (BLS) Consumer Price Index (CPI)

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3. Business Indicators

• There are almost 200,000 private establishments (businesses with at least one employee) in Maryland as of the latest data in Q3 2025.
• The number of business establishments in Maryland has steadily increased over the past five years, (despite decreases in some quarters, including in Q3 2025): The number of private establishments increased by more than 2,000 over the past year (Q3 2024 to Q3 2025). Longer term, there are about 15,500 more businesses as of the latest data compared to Q1 of 2022; a 9% increase. This is slightly below the national increase of 10% during this period.
• This data does not include sole-proprietors or business owners with no employees, who make up the majority of small business owners. According to an analysis by the Small Business Administration (PDF), which includes sole proprietorships, there are just under 700,000 small businesses in Maryland as of 2022 (the latest available data).

Figure 3A: Number of Private Establishments, Q1 2022 to Q3 2025

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Source: Bureau of Labor Statistics (BLS)
Note: Only includes establishments or businesses with at least one employee, does not include self-proprietor businesses

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4. Gross Domestic Product (GDP)

Gross Domestic Product (GDP) gauges the size and health of the economy. It is an estimate of the value of all goods and services produced within the state during a specific time period, including the amount that consumers and governments spend on goods and services; business investments in things like property and equipment; and the value of exported goods and services minus imported goods and services.

• In 2025, the state's total GDP was $568 billion, a 4% increase from 2024.
• The state's GDP has been on a steady upward trajectory for over a decade, apart from a brief disruption at the start of the pandemic.
• Despite sluggish job growth in 2024 and job losses in 2025, productivity gains in high-tech industries and continued growth in real estate helped drive GDP growth in Maryland and in the U.S. Nationally, economic output per hour increased by 2.1% last year. While it's too early to know the role of AI in this growth, it likely helped to increase productivity.

Figure 4A: Annual Maryland GDP, 2010 to 2025

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Source: Bureau of Economic Analysis (BEA)

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• Government made up 20% of the state's total GDP in 2025, which is almost double the share at the national level (11%). This share has consistently been around 20-21% in Maryland over the past decade.
• The next largest shares of GDP are attributable to real estate (15%); professional, scientific, and technical services (10%); and health care and social assistance (8%). The professional, scientific and technical services sector has lost jobs in the last year, but it includes many high-tech businesses like those in biotech, life sciences, and cybersecurity, which have high productivity. Health care and social assistance, on the other hand, is less productive but has had strong employment growth.

Figure 4B: Maryland GDP by Industry, 2010 to 2025

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Source: Bureau of Economic Analysis (BEA)

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5. State Revenue

Revenue trends are an important indicator of the health of the state economy, its residents, and businesses. This section analyzes the State's largest revenue sources – the personal income tax, corporate income tax, and sales and use tax – and revenue generated from specific goods such as alcohol, tobacco, cannabis, motor fuel, and admissions and amusement taxes. State revenues are divided into the General Fund and Special Funds. The General Fund is comprised of unrestricted revenues that can be allocated to a range of government services. Special Funds, such as the Transportation Trust Fund or the Blueprint for Maryland's Future Fund are used for restricted purposes, such as roads, transit, and infrastructure, or education reform and public schools.

• In the last fiscal year (FY2025), personal income tax revenue dedicated to the General Fund increased by 7% or by just under $1 billion, growing from $13.6 billion to $14.6 billion from FY2024. Personal income tax revenue has more than doubled since FY2010 ($6.2 billion).
• Maryland's “core” sales tax (the 6% rate applied to the sale of most goods and select services) has been growing faster than anticipated – at almost 5% so far in the current fiscal year (FY2026) compared to about 3% in all of FY2025. The portion of the sales and use tax dedicated to the General Fund was $6 billion for FY2025, a 2.6% increase from the previous year.
• These two trends indicate strong wages and consumer spending – promising signs for the economy. However, they can also indicate growing economic inequality: income growth and associated revenue growth is increasingly attributable to a relatively small share of high-wealth residents. (The top 5% of Maryland taxpayers earn about 31% of all income in the state; the bottom 50% earn about 15%.)
• Corporate income tax collections are down this year compared to last year. This is in part attributable to federal government cuts which have led to lower revenue and payments from private government contractors.

Figure 5A: General Fund Major Revenue Sources, FY2010 to FY2025

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Source: Comptroller tax data
Note: This is not all tax revenue, only the revenue that goes into the State’s General Fund

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• Some of Maryland's other revenue sources come from taxes on specific goods such as alcohol, cannabis, admissions and amusement, tobacco, and motor fuel. These goods are taxed at a higher rate than the core sales tax (e.g., 9% for alcohol; 12% for cannabis).
• Of these types, motor fuel generates the most revenue followed by tobacco.
• Some of these tax revenues are dedicated to special funds – for example, most of the tobacco tax goes into Blueprint for Maryland's Future Fund; about a third of cannabis tax revenue (PDF) goes into a “Community Reinvestment and Repair Fund;” and motor fuel tax revenue supports the Transportation Trust Fund. Most alcohol tax revenue goes into the General Fund while most admission & amusement tax revenue goes to counties.

Figure 5B: Tax Revenue by Type, FY2024 to FY2026

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Source: Comptroller tax data

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6. State Spending

This section highlights the State's operating budget and how revenues contribute to State spending. The operating budget is the State's annual plan for funding government services, including State government employees and state programs for health, education, transportation, and more. The budget is developed by the Governor and must be approved by the Maryland General Assembly. The approved budget must be balanced between revenues and expenses.

• Revenues for the State’s operating budget come from the General Fund and Special Funds (discussed above) and Federal Funds.
• The FY2027 operating budget is $64.9 billion with 43% coming from the General Fund, 33% coming from federal funds, and 24% from special funds.
• The FY2027 General Fund was slightly lower than FY2026 due to slower revenue growth and more diversion to special funds. For more information on FY2027 revenue, see the Bureau of Revenue Estimates.
• The level of federal funding to Maryland decreased from FY2026 to FY20s27 due to funding and job cuts under the Trump Administration. The significant spike in federal funds during FY2021 and FY2022 is attributable to federal pandemic relief provided through policies like the American Rescue Plan Act (ARPA) and the Infrastructure Investment and Jobs Act (IIJA).
• Special funds have experienced a year over year increase from FY2022 to FY2027, due to the creation of the Blueprint for Maryland’s Future Fund, an increase in revenue to the Strategic Energy Investment Fund, and increased spending from the Transportation Trust Fund.

Figure 6A: State Operating Budget by Funding Source, FY2017 to FY2027

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Source: Maryland Department of Budget Management

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Bonus Charts of the Quarter

Maryland has 5,499 public EV charging ports across the state, which is more than double the amount in 2022 and more than triple since 2020. In 2025 alone, more than 1,500 new charging ports were added.

The number of EV and hybrid plug-in vehicles in the state has also grown rapidly over the past several years: as of May 2026, there are now five-times as many EV and hybrid plug-in vehicles registered in Maryland as there were in 2020. The majority, or around 116,000, of those are fully electric and about 40,000 are hybrid plug-in vehicles that can use both gas and charging ports. Growth has slowed slightly in 2026 after the federal tax credits for these vehicles expired at the end of 2025. In Q1 2025, an average of 1,996 new electric or hybrid plug-in vehicles were registered a month compared to 909 in Q1 2026.

Number of Registered EV or Hybrid Vehicles and EV Ports in Maryland, 2020 to 2026

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Source: U.S. Department of Energy Alternative Fuels Data Center (AFDC)

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Gas prices in Maryland rose to an average of $3.79 a gallon (for regular gas) in March 2026 after starting the year just below $3 a gallon. The war with Iran has put a strain on supply causing gas prices to surge nationally and in Maryland, adding to affordability challenges facing many residents.

Average Monthly Gas Prices in Maryland, Feb 2025 to March 2026

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