Maryland Economic and Fiscal Quarterly Snapshot Q2 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.

• Maryland added 8,900 jobs in Q2 2026 (+0.3% increase from Q1), shown in Figure 1A. This follows a similar trend as the U.S.: nationally, 260,000 jobs were added in Q2 2026 (+0.2% increase from Q1).
• This progress is important: at the end of Q1 2026, Maryland had the largest year-over-year decrease in total employment of all states (-49,900 jobs). The state is climbing out of this deficit: as of June 2026, Maryland was down 18,700 jobs compared to June 2025.

Figure 1A: Total Employment in Maryland, January 2022 to June 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 Q2 2026 (April, May, June) compared to Q2 2025.
• While jobs have been growing by about the same rate in Maryland and the U.S. over the quarter (as described in 1A), Maryland is still seeing effects of 2025 federal government job losses in the data: jobs are below last year’s levels while the U.S. is slightly higher.
• On average, monthly employment in Maryland in Q2 2026 was 1% lower than in Q2 2025, or an average of 26,500 fewer jobs per month. (This is an improvement from last quarter: monthly employment of Q1 2026 was 1.7% lower than Q1 2025).
• Nationally, Q2 2026 employment is slightly higher (0.2% or +360,000 jobs) than in Q2 of 2025.

Figure 1B: Year-over-year Percent Change in Employment by Month, Q2 2026

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

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• Job growth in Q2 2026 was concentrated in health care and social assistance, accommodation and food services, and private education, while most other industries (including federal government) remained stagnant with little or no change in the number of jobs from the previous quarter (Q1 2026) as shown in Figure 1C.
• Stagnant in Q2 2026 is an improvement especially for federal employment and the professional, scientific, and technical service industry, which both suffered substantial losses over the past year (federal down 22,000 or 14% since Q2 2025; professional, scientific, and technical services down 7,500 or 3% since Q2 2025).
• Some of these year-over-year losses have been offset by continued growth in the health care and social assistance industry, which added 11,000 jobs between Q2 2025 and Q2 2026. (Learn more in the Comptroller’s report: Maryland Industry Analysis: Healthcare and the Economy, April 2026 (PDF).)

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

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

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• The unemployment rate increased slightly from Q1 2026 and has increased fairly consistently in Maryland over the past year, from 4% in Q2 2025 to 4.4% in Q2 2026 (Figure 1D).
• Historically, the unemployment rate has been lower in Maryland compared to the U.S. Last quarter, it has increased to meet, and now slightly exceeds, the national average.

Figure 1D: Unemployment Rate, January 2022 to June 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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• The labor force participation rate (LFPR)* was stable over the course of Q2 2026 (at 63.9%), but is down slightly from last quarter and has decreased by nearly one percentage point in Maryland over the past year, from 64.7% in Q2 2025 to 63.9% in Q2 2026 (Figure 1E).
• The national LFPR is down by about the same amount year over year, decreasing by 0.7 percentage points from 62.4% in Q2 2025 to 61.7% in Q2 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 June 2026), while nationally the LFPR is only 1.8 percentage points below pre-pandemic levels (63.3% to 61.5%).

* 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 June 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 (Figure 1F).
• In January 2022, Maryland average hourly earnings were $35, compared to $32 in the U.S. In 2026, both Maryland and the U.S. have been 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 June 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 June 2026, the typical market home value in Maryland is $433,000 compared to $372,000 for the U.S. (Figure 2A).
• Home sale prices are essentially unchanged from last quarter and have been relatively stable for the last year – just a 0.1% increase in prices from Q2 2025 to Q2 2026. In the U.S., there was a 0.7% increase in that period.
• This represents a substantial slowdown in price growth after several years of high growth starting in 2020 in Maryland and the U.S.
• 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 June 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 $1,000 in Allegany County to around $2,389 in Howard County as of June 2026 (Figure 2B). Rents are generally higher in the counties in the National Capital Region such as in Charles, Montgomery, and Howard Counties. Anne Arundel, Calvert, and 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, June 2026

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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 Caroline, Dorchester, Garrett, Kent, or Somerset counties as of June 2026.

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• In the first half of 2026, there have been 7,429 housing permits issued across the state (about 3,700 each quarter), which is about the same as the number of permits issued in the first half of 2025 (Figure 2C).
• This includes 3,000 multi-family units and 4,429 single-family units issued so far in 2026. While the total number of permits is the same, there have been almost 1,000 more multifamily permits issued in the first half of 2026 than in the first half of 2025.
• 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 three months of inventory in Maryland according to the Maryland Association of Realtors as of June 2026, below the “healthy” level of for-sale inventory of about six months.

Figure 2C: Residential Building Permits Issued in Maryland by Quarter, Q1 2021 to Q2 2026

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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 Washington metro is July and for the Baltimore metro is June. This data is not seasonally adjusted.

• As of June 2026, inflation for all items in the Baltimore metro area increased by 2.7% from June 2025, below the nationwide average of 3.5% in that period (Figure 2D). (This is also lower than inflation in Baltimore in April, the previous available monthly data).
• As of July 2026, inflation for all items in the Washington metro area was up 4% since July 2025, slightly above the national average of 3.4% 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 (4.6% and 3.8%, respectively, compared to 3.3% for the nationwide city average), based on the most recently available data.
• Gasoline has experienced the highest inflation rates over the past year, with 23.5% increase in the Baltimore metro and 24.8% in the Washington metro.

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 Q4 2025 (Figure 3A). This is essentially unchanged from last quarter (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 4,000 over the past year (Q4 2024 to Q4 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 about 700,000 small businesses in Maryland as of 2023 (the latest available data).

Figure 3A: Number of Private Establishments by Quarter, 2022 to 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 items like property and equipment; and the value of exported goods and services minus imported goods and services.

• State GDP was $581 billion in Q1 2026 (the latest available data), which represents 1% growth over the quarter (since Q4 2025) and 8% growth over the year (since Q1 2025), shown in Figure 4A.
• 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 2026

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Source: Bureau of Economic Analysis (BEA), Current-dollar GDP (not adjusted for inflation)

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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 Annual 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.

FY2026 revenue data is not yet available to share so the following analysis is based on FY2025 and is the same data included in the Q1 release.

• 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 (seen in Figure 5A). 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). FY2026 tax revenues are listed in Figure 5B.
• 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 revenue 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. This is the same data presented in the Q1 snapshot as there have not been any updates.

• 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 Chart of the Quarter

Maryland is famous for its blue crabs, served up steamed with Old Bay Seasoning, or prepared as Maryland crab cakes or Maryland crab and cream of crab soup. There are 349 million blue crabs in the Chesapeake Bay this year, a 47% increase from 2025 and the largest population since 2020.

However, longer term, the blue crab population in the Chesapeake Bay has been on the decline. A recent study estimates the population is half of what it was in 2010. The study attributes this to invasive predators (e.g., blue catfish) and poor survival rates for juvenile blue crabs but acknowledges that there is still a lot to learn about what is driving the decline. (Chesapeake blue crab population drops 50%. The question is: Why? - Maryland Matters)

The limited supply has led to increased prices, which have been compounded this year due to the recent higher gas prices.

The Maryland crab industry contributes an estimated $600 million to the economy each year and accounts for 50% of the total blue crab harvest in the U.S.

Maryland’s Department of Agriculture “True Blue” program encourages restaurants to get blue crabs from Maryland suppliers and certifies restaurants that get at least 75% of their supply from Maryland blue crabs. There are around 50 certified restaurants in the state, so look for the “True Blue” symbol at your local seafood restaurant!

Chesapeake Bay Blue Crab Population

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