The Maryland state economy presents a worrying contradiction, according to a new report by Comptroller Brooke E. Lierman. With the highest median household income ($108,200) and the lowest unemployment rate (1.2%) nationwide, Maryland’s economic growth remains stagnant. In comparison, the US GDP grew 13.9% from 2016 to 2023, while Maryland’s only rose by 1.6%. This suggests Maryland might be falling behind economically compared to neighboring states like Pennsylvania and Virginia.

Factors contributing to this lackluster performance include a reduced workforce participation rate impacted by limited access to child care and health care, as well as rising opioid use. The trend of Maryland residents choosing not to have children, an outflow rather than an influx of residents, and high housing costs - causing some to move out of state and telecommute - are also noted.

Yet, Maryland boasts significant advantages such as its proximity to the capital, an abundance of federal jobs, a concentration of higher education institutions and healthcare facilities, vibrant biotech and medical research sectors, and the geographic convenience of the Port of Baltimore. Policymakers need to focus on enhancing affordability of housing, child care, and healthcare to maintain a vibrant workforce. In addition, nurturing the private sector economy and utilizing the state’s resources and population, particularly in major cities like Baltimore, can promote a brighter economic future. Monitoring the projected state budget deficits should also be prioritized.