Economy Continues Recovery from Recession
Maryland continues to climb out of the Great Recession, according to statistics from the current fiscal year. Despite losing 14,600 nonfarm jobs (seasonally adjusted), the state’s labor force boasts 21,700 more employed people and first time unemployment claims are down 11% over the previous fiscal year. At 7%, Maryland’s unemployment rate is down 0.4% compared to June 2010. Several other Maryland economic indicators improved during the year, including the state’s real estate, household income and fiscal health.
Climbing housing permits and existing home sales indicate marked improvement in the state’s real estate sector. Single-family housing permits were up 5.4% over the comparable FY 2010 level, while multi-family permits were up 36.2%. The latest available data shows that existing home sales grew 9% in the year prior to 2011 Q1. Steady personal income growth and declining personal bankruptcies could spark further housing market improvement. Maryland aggregate real personal income grew by 2.8% between 2010 Q1 and 2011 Q1. In addition, state non-business bankruptcies fell by 3.4%.
The Comptroller estimates that Maryland general fund revenue grew $540 million or by 4.3% during FY 2011. With 3.8% growth or $133 million the sales & use tax accounted for about a fourth of that growth. The personal income tax had 2.9% growth or $182 million, accounting for about one third of the year’s growth. These two taxes alone account for more than three-quarters of the state’s general fund revenues. The Comptroller expects FY 2012 revenue to come in at $13.6 billion or 3.6% higher than FY 2011’s totals.
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