Howard County Unemployment News: 'As Good As It Gets'

Like the nation at large, the unemployment rate in Howard County dropped between September and October. 

But unlike the national labor force— the pool of working people and people who are actively looking for work—the labor force in Howard County has grown slightly, suggesting that people who are not working have not "given up" on finding a full-time job.

“From the perspective of economic data, that’s as good as it gets,” said Anirban Basu, chairman and CEO of Sage Policy Group, Inc., an economic and policy consulting firm in Baltimore.

“One would expect that the labor force would tend to expand as economic news improves” Basu said. “And, while that hasn’t happened nationally, at least not yet, it is happening in Howard County.”  

From September to October, the unemployment rate in Howard County fell from 5.4 percent to 5.1 percent while about 1,300 people were added to the labor force, according to the Maryland Department of Labor, Licensing and Regulation. 

“That said, unemployment in the county is far higher than it was four years ago when the recession began,” Basu said. “Purely on Howard County’s data, one would actually regard the county’s unemployment rate as historically high.”

In Oct. 2007, Howard County had a 2.6 percent unemployment rate. In Oct. 2008, it was 3.6, according to the labor department.

There has been a lot of speculation about why the labor force is shrinking nationally, Basu said. "While people are getting unemployment insurance, they must be actively engaged in the job search process and are considered part of the labor force, although they are not working."

When those benefits end, he said, the unemployed have two options: "First, continue their job search," in which case they remain part of the official labor force population, or "second, stop the search process, in which case these people drop out of the labor market all together."

Basu said that some analysts surmise that in some areas, with the economy improving, spouses may decide that they don't need to go back to work. 

"But we heard so much about the rising cost of living, the middle class falling behind ... it's difficult to imagine that there's a large number of people who have decided that they have a lot of money and that one of the two primary breadwinners don't have to work."

“It is very encouraging to see our unemployment rate consistently drop from month to month—evidence of our focus on fostering economic development opportunities through innovation and entrepreneurship,” County Executive Ken Ulman said in a statement.

“While 5.1 percent is still unacceptable to us and to those looking for work, I assure you that job creation is a top priority of this administration and we will continue to focus on creating and retaining good jobs in Howard County.” 

Statewide, unemployment in fell in October from 7.4 percent to 7.2 percent.