Maryland employers cut an estimated 8,200 payroll jobs in August after a revised gain of 10,200 in July, leaving the state with a net increase of 2,000 jobs across the two months, according to figures released Friday.
The unemployment rate nevertheless fell one-tenth of a percentage point to 4.1%, matching the national rate. Maryland’s labor-force participation rate slipped to 63.7% but remained above the U.S. rate of 61.6%, the same report said.
The combination is not contradictory because payroll jobs and unemployment come from different federal surveys. Payroll employment is estimated from businesses and government agencies and counts jobs by workplace location. The unemployment rate is modeled largely from a household survey and counts residents by where they live. The Bureau of Labor Statistics explains that the two programs measure different populations and are subject to revision.
Maryland had the largest percentage payroll decline among states in August at 0.3%, according to the Joint Economic Committee’s state employment summary. Federal analysts did not classify Maryland’s payroll drop as statistically significant, however, so the estimate should be read alongside the revised July gain and the broader trend.
That distinction is important because the state figures are preliminary estimates rather than a complete payroll census. The committee’s full employment update shows that payrolls rose in 35 states and fell in 16 in August, but only four increases were large enough to be statistically significant in the federal release.
Across July and August, accommodation and food services added 4,000 jobs. Professional, scientific and technical services gained 2,800, while arts, entertainment and recreation added 1,500. Administrative, support and waste-management services increased by 900, and government payrolls rose by 600, according to the two-month industry breakdown.
Those gains were partly offset by a 2,900-job decline in construction. Private educational services lost 1,400 jobs, while health care and social assistance and retail trade each lost 800. Transportation, warehousing and utilities declined by 700, as did other services.
For the first eight months of 2026, Maryland added an estimated 20,100 jobs. Its 0.7% growth since January exceeded the national rate of 0.4%. The two-month gain of 0.1% matched the U.S. pace over the same period, according to the state figures summarized by NottinghamMD.
Using the two-month window also limits the effect of July’s downward revision, from an initially reported gain of 11,700 jobs to 10,200. Even after that revision and August’s decline, the combined period remained positive by 2,000 jobs.
The national backdrop was comparatively steady. The August U.S. employment report showed employers added 162,000 jobs while unemployment held at 4.1%. The separate state release found unemployment rates fell significantly in eight states and the District of Columbia and were stable elsewhere.
The clearest interpretation is that Maryland’s August decline interrupted, but did not erase, recent growth. The revised July and August estimates together remain positive, unemployment aligned with the national rate and participation stayed comparatively high. Future revisions will determine whether August marked a turning point or monthly survey volatility.