Maryland’s workforce grew modestly in January, adding a net 4,500 jobs as private-sector gains were partly offset by continued losses in federal employment, according to new estimates released by the U.S. Bureau of Labor Statistics.

The state added 10,100 private-sector jobs during the month, led by growth in health care, construction, and hospitality. But those gains were tempered by a decline of about 5,400 federal positions, contributing to an overall drop of 5,600 government jobs.

“The national data have varied month to month. January was a strong month for statistical job creation nationally, so it’s unsurprising that January data look favorable for Maryland,” said Economist Anirban Basu, chairman and CEO of Sage Policy Group. “February is likely to be poor, and March will probably be better.

“Over the course of the year, job growth in Maryland is likely to be sluggish as consumers remain weighed down by rising prices, several Marylanders with substantial spending power leave the state, federal job losses continue, and Maryland is outpaced by proximate states with respect to attracting private investment.”

Health care and social assistance posted the largest increase, adding 4,300 jobs in January. Construction added 2,400 positions, while accommodation and food services grew by 1,900 jobs. Professional and technical services and administrative support also saw smaller gains.

At the same time, several sectors recorded losses. In addition to the decline in government employment, the information sector shed 1,200 jobs, while wholesale trade and private educational services also posted smaller decreases.

Maryland’s unemployment rate edged up to 4.3% in January, matching the national rate.

Revised data released with the report shows a shifting employment picture over the past two years. Between January 2023 and January 2025, Maryland added 89,500 jobs, outpacing national growth. However, estimates indicate the state lost 49,300 jobs between January 2025 and January 2026, reflecting a sharp downturn tied in part to federal employment declines.

Federal jobs in Maryland fell by 31,100 over the past year, a drop that has also affected contractors and businesses that rely on government spending.

Despite those losses, state officials point to continued private-sector investment. Projects announced in recent months include a planned entertainment venue at National Harbor expected to generate thousands of jobs, a $2 billion expansion by AstraZeneca in Frederick and Gaithersburg, and a new Samsung Biologics manufacturing facility in Rockville.

Economists say the mixed report reflects Maryland’s dual reliance on both federal employment and private-sector growth — with gains in industries like health care helping to cushion, but not fully offset, declines tied to federal workforce reductions.

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