Despite a low unemployment rate and a positive jobs outlook, economists warn Maryland may face a soft recession in 2024.
Maryland’s unemployment rate reached 1.6% in September and only climbed one-tenth of a point in November to 1.7%. The rate is the lowest seasonally adjusted unemployment rate of any state since 1976. But economists warn this historic milestone does not paint the true picture.
“Many people look at the rate of unemployment as economic vibrancy, but it’s quite the opposite. The state’s labor force has not expanded, and growing businesses are having a hard time finding the talent they need to expand,” said Anirban Basu, Chairman and CEO of the Sage Policy Group. “Maryland’s economy has been stagnant and failed to recover. If the U.S. economy enters a recession next year, Maryland’s economy is likely to be in a recession as well.”
The low unemployment is a warning sign, Basu said. Enterprises are struggling with the lack of talent and employees are leaving Maryland for opportunities in other states.
Click here to read the rest of the article written by Christine Tobar over at The Daily Record