Maryland led the nation in the most federal jobs lost by American workers last year. According to new data released Wednesday by the U.S. Bureau of Labor Statistics an estimated 24,900 federal positions were cut since January 2025. More than 10,000 of those jobs were lost during the months of October and November alone.
In Montgomery County, the data suggests that there was a decline in an estimated 4,200 jobs between September and November 2025, with a total of 9,900 positions lost between January 2025 and November 2025, wrote the Maryland Department of Labor in a statement to MCM News.
The data on federal employment losses come after the first monthly job numbers to reflect the “fork in the road” deferred resignations. They went into effect Oct. 1, according to a statement from Gov. Wes Moore’s office. The losses were exacerbated by the longest federal government shutdown in U.S. history from Oct. 1 to Nov. 12, 2025. That impacted approximately 269,000 federally employed Maryland residents.
The state’s unemployment rate currently stands at 4.2%, which is one percent higher than a year ago, according to BLS data. However, Maryland’s unemployment rate remains below the national average of 4.6 percent.
The federal government directs more than $150 billion annually to the State of Maryland through federal wage and retirement income, contracts, grants, and direct payment spending, according to the State Office of the Comptroller. Maryland residents employed by the federal government have combined annual earnings of $26.9 billion across defense and non-defense positions, excluding active-duty military personnel.
Denise Mortimer, a former federal employee, now creates pet portraits to comfort fellow displaced government workers.
Faces of Unemployment
Individual stories of joblessness after mass federal layoffs were featured in a series of interviews with county residents for a November 2025 MCM News special, illustrating the impact to the local economy. Watch the full episode in the video below.
Where the Positive Gains Lie
Meanwhile, there were nearly 100,000 private-sector, state and local government jobs added to the Maryland workforce last year. The highest employment gains were seen in the healthcare industry, followed by private educational services, professional and technical services, wholesale trade jobs and positions in the accommodation and food services industry, according to Maryland’s Labor Department.
Additional data on the state employment and unemployment rates will be released by the BLS Jan. 27.
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