Maryland's economy continued to surge in January, sharing fully in the nation's healthy employment growth and pushing the state's unemployment rate to a nine-year low, the government said yesterday.

Unemployment in Maryland fell to 3.7 percent in January from a revised 3.9 percent in December, after adjustments for seasonal factors, according to the U.S. Bureau of Labor Statistics. It was state's lowest jobless rate since November 1989, when it was also 3.7 percent.

At this rate Maryland will soon break its lowest unemployment mark of at least the last 20 years -- 3.6 percent -- also reached in 1989.

"This says the economy is doing very well at the moment," said Charles McMillion, chief economist for MBG Information Services, a Washington consulting and forecasting firm. "We're off to a good start [for 1999]."

Maryland also recorded decent job growth in January, normally known for its post-Christmas economic doldrums. Maryland had 2.31 million jobs during the month, a robust 57,000 more than in the same month a year ago. That represents 2.5 percent growth, besting the 2.1 percent job growth shown by the nation over the same January-to-January period.

With the national economy appearing to pick up, analysts said that Maryland's prospects for the year have also improved.

Patrick Arnold, director of labor market analysis for Maryland's Department of Labor, Licensing and Regulation, said he believes that the state's current pace of job growth is sustainable well into the year.

"I may be out on a limb, but I'm beginning to think that the chances of missing a recession in 1999 are growing, and that's why I'm willing to say sustainable through this year," Arnold said.

The Regional Economic Studies Institute at Towson University recently revised its projected Maryland job growth for 1999 up from 1.8 percent to 2.1 percent.

"We thought perhaps we would have more of an impact from the international crises," said Michael Funk, an economist who follows Maryland for RESI. "But it turned right around in the third and fourth quarters. It looks like everything's back on track."

In the Baltimore region, Howard County continued to book the low unemployment rate, a drum-tight, seasonally unadjusted 2 percent that bespoke "help wanted" signs and overworked staffs. For the lowest unemployment in the state, Howard County tied Montgomery County, which usually holds the title.

Baltimore City had the highest unemployment rate in the Baltimore region, but at 7.5 percent it was far below the city's 11.1 percent jobless rate of a year earlier.

The Baltimore region had a seasonally unadjusted unemployment rate of 4.4 percent, down from 6 percent a year earlier.

Highest unemployment in the state was 18 percent in Worcester County on the Eastern Shore, which was an improvement. In January 1998, Worcester unemployment was 21.6 percent.

For years, Maryland's job growth has lagged behind that of the nation, as white-collar downsizing and manufacturing layoffs took their toll. There's no guarantee that its recent, nation-beating spurt will continue, but it's not bad news, either, McMillion said.

"Maryland's job growth has been slower than that of the nation for every year since 1988," said McMillion. "At least we can say that, for January to January, we're outstripping the nation."

Pub Date: 3/06/99