Maryland’s payroll picture weakened in August but remained positive across the latest two-month window: employers added an estimated 2,000 jobs over July and August combined, the state Department of Labor reported Friday. Revised estimates show a 10,200-job gain in July followed by an 8,200-job loss in August.

The two-month view matters because monthly payroll estimates are based on surveys and can move substantially when more information arrives. July’s preliminary gain had been 11,700 jobs before the revision. Across both months, Maryland employment grew 0.1%, matching the national rate, while the state’s first eight months of 2026 produced an estimated net gain of 20,100 jobs, or 0.7%. The comparable national increase was 0.4%, according to the state release.

Unemployment fell as the labor force narrowed

Maryland’s unemployment rate slipped from 4.2% in July to 4.1% in August. Federal data show the number of unemployed residents fell by about 5,400, while the civilian labor force declined by about 3,200 and resident employment rose by about 2,200. Those movements mean the lower jobless rate should not be read as a pure measure of hiring.

The state’s labor-force participation rate also edged down to 63.7%, but remained above the 61.6% national rate reported by Maryland officials. Nationally, August unemployment held at 4.1%, and the Bureau of Labor Statistics found that rates were lower in eight states and the District of Columbia while remaining statistically stable in 42 states. Payroll employment rose significantly in only four states, according to the federal summary.

Gains and losses were uneven

Across July and August, accommodation and food services led Maryland’s estimated gains with 4,000 jobs. Professional, scientific and technical services added 2,800; arts, entertainment and recreation added 1,500; administrative and support services added 900; and government added 600. The state’s detailed tables provide the underlying payroll and household-survey series.

The federal series also places Maryland’s August nonfarm payroll level 0.2% below a year earlier. Leisure and hospitality was up 3.2% over the year, while trade, transportation and utilities was down 3.1%, underscoring the uneven pattern beneath the statewide total.

Construction had the largest estimated two-month decline, losing 2,900 jobs. Private educational services lost 1,400, while health care and social assistance and retail trade each lost 800. Transportation, warehousing and utilities lost 700, as did other services. The mix suggests recent growth was real but concentrated, leaving several large sectors below their early-summer levels.

For job seekers, the statewide headline is best treated as a directional measure rather than a prediction for any individual field. Hospitality and technical services showed momentum across the two-month period, while construction and education weakened. For employers and policymakers, revisions are a reminder to compare several months and both surveys before drawing conclusions. The August estimates remain preliminary and can be revised again when the next state employment report is released.