Unemployment in Maryland topped 7 percent in May, reaching a more than 25-year high as joblessness rose in 48 states and experts said the worst is far from over.
The jobless rate hit 7.2 percent in Maryland, up from 4.1 percent in May 2008, preliminary government figures released Friday showed.
Economists say joblessness is expected to rise well into next year.
"There is always a lag in terms of economic recovery in output and employment, and this recovery is expected to be slower," said Mohammad Iqbal, an economist with IHS Global Insight.
Because new job creation will not be strong enough to bring down unemployment, high joblessness would persist in many areas into 2010, with little relief expected before 2011, Iqbal said.
Maryland's unemployment rate has not been 7.2 percent or higher since July 1983, according to the data from the U.S. Department of Labor's Bureau of Labor Statistics.
But the state continues to fare better than the nation, which had an unemployment rate of 9.4 percent last month.
During the 12 months through May, Maryland lost nearly 65,000 jobs, not adjusted for seasonal changes, according to numbers that are preliminary and subject to revision.
About 2.7 million people were employed in Maryland last month, while more than 212,000 residents were actively seeking work, the preliminary figures show. Nearly 25,000 fewer Marylanders were employed in May, compared to April.
Some "may have been lulled into complacency by all the discussion of 'green shoots' emerging in the economy," said Anirban Basu, chief executive officer of Sage Policy Group.
While unemployment is considered a lagging indicator, it can also be viewed as a leading indicator, Basu explained, because of its effect on consumer confidence and spending.
"When people become unemployed, they spend less money," he said.
"These people who have become recently unemployed are likely to face significant resistance in terms of securing replacement employment in the near term. ... The job market remains lousy," Basu said.
Unlike previous recessions, "one has the sense it will take many years before many of these people are fully integrated into the labor market," because employers are still too pessimistic or cautious to ramp up hiring again, he said.
Renee Libby was laid off last month from a public relations job at Cleo Communications in Baltimore.
