After a nine-month job drought, businesses in Maryland have finally started to hire.
Boosted by growth in construction, health care and the federal government, Maryland added jobs in November - the first time since January, according to data released by the federal government.
Total jobs in the state rose to 2.5 million last month, 3,000 more than a year earlier, according to the Bureau of Labor Statistics.
"The latest data ... clearly shows that job growth [in Maryland] has resumed," said Pradeep Ganguly, chief economist in Maryland's Department of Business and Economic Development. "This is a big deal. It appears that the state snapped the negative trend in November."
But Ganguly warned that Maryland is still struggling along with the rest of the country.
"I want to be cautious," he said. "By no means does it say that the economy is healthy again. It still remains very weak."
While the increase was small when compared with monthly gains of as much as 70,000 jobs in the late 1990s, it is a sign that Maryland's economy is mending and growing faster than the nation's. Maryland's job growth rate in November was 0.12 percent, while the U.S. rate was a negative 0.14 percent.
It also outpaced the growth rates of several neighboring states, which lost jobs, too. Maryland officials said Delaware's job growth rate was a negative 1.55 percent, West Virginia's a negative 0.98 percent, Pennsylvania's a negative 0.49 percent and Virginia's a negative 0.21 percent. Jobs in Washington grew 0.38 percent spurred by a rebound in business services.
"Clearly, when you start gaining jobs and not losing them, that is a good thing," said Scott Hoyt, director of consumer economics at Economy.com in West Chester, Pa. "Barring an unforeseen shock to the system, we are expecting continued gradual improvement, and Maryland should be one of the leading states because of its dependence on increased federal spending."
Maryland's job growth was driven by a handful of sectors, including the construction industry, which saw employment grow by 5.7 percent in November from a year earlier, Ganguly said. Not only were workers added to build homes in the white-hot residential construction industry, but they worked on roads and bridges, too.
Hospitals, nursing homes and other health services also expanded as jobs grew at a 2.6 percent rate in the period. Federal government jobs, which have been steady, were up 1.6 percent.
Not all sectors were hiring. As is occurring in many states, Maryland's manufacturing and business services continue to struggle. Manufacturing jobs declined 3.4 percent in November, compared with a year earlier, according to the data. Business services jobs fell 3.3 percent over the period, but improved from July and August, when they declined by about 9 percent. The numbers are the latest signal that Maryland has emerged from recession faster and is in better shape than the nation.
The national economy slipped into recession in March 2001 and came out in December or January, experts say. Maryland fell into recession in the fourth quarter of last year and probably emerged about July.
Maryland's job losses began in November 2001, when 2,300 jobs disappeared. In January, about 500 jobs were added, but Ganguly called the gain insignificant. Losses then accelerated, peaking at 38,000 in July.
"We seemed to have weathered the storm fairly well compared with the nation," Ganguly said.
Boosted by growth in construction, health care and the federal government, Maryland added jobs in November - the first time since January, according to data released by the federal government.
Total jobs in the state rose to 2.5 million last month, 3,000 more than a year earlier, according to the Bureau of Labor Statistics.
"The latest data ... clearly shows that job growth [in Maryland] has resumed," said Pradeep Ganguly, chief economist in Maryland's Department of Business and Economic Development. "This is a big deal. It appears that the state snapped the negative trend in November."
But Ganguly warned that Maryland is still struggling along with the rest of the country.
"I want to be cautious," he said. "By no means does it say that the economy is healthy again. It still remains very weak."
While the increase was small when compared with monthly gains of as much as 70,000 jobs in the late 1990s, it is a sign that Maryland's economy is mending and growing faster than the nation's. Maryland's job growth rate in November was 0.12 percent, while the U.S. rate was a negative 0.14 percent.
It also outpaced the growth rates of several neighboring states, which lost jobs, too. Maryland officials said Delaware's job growth rate was a negative 1.55 percent, West Virginia's a negative 0.98 percent, Pennsylvania's a negative 0.49 percent and Virginia's a negative 0.21 percent. Jobs in Washington grew 0.38 percent spurred by a rebound in business services.
"Clearly, when you start gaining jobs and not losing them, that is a good thing," said Scott Hoyt, director of consumer economics at Economy.com in West Chester, Pa. "Barring an unforeseen shock to the system, we are expecting continued gradual improvement, and Maryland should be one of the leading states because of its dependence on increased federal spending."
Maryland's job growth was driven by a handful of sectors, including the construction industry, which saw employment grow by 5.7 percent in November from a year earlier, Ganguly said. Not only were workers added to build homes in the white-hot residential construction industry, but they worked on roads and bridges, too.
Hospitals, nursing homes and other health services also expanded as jobs grew at a 2.6 percent rate in the period. Federal government jobs, which have been steady, were up 1.6 percent.
Not all sectors were hiring. As is occurring in many states, Maryland's manufacturing and business services continue to struggle. Manufacturing jobs declined 3.4 percent in November, compared with a year earlier, according to the data. Business services jobs fell 3.3 percent over the period, but improved from July and August, when they declined by about 9 percent. The numbers are the latest signal that Maryland has emerged from recession faster and is in better shape than the nation.
The national economy slipped into recession in March 2001 and came out in December or January, experts say. Maryland fell into recession in the fourth quarter of last year and probably emerged about July.
Maryland's job losses began in November 2001, when 2,300 jobs disappeared. In January, about 500 jobs were added, but Ganguly called the gain insignificant. Losses then accelerated, peaking at 38,000 in July.
"We seemed to have weathered the storm fairly well compared with the nation," Ganguly said.