Economist Predicts Slow Job Growth in Greater Baltimore

BALTIMORE—PNC Financial Services Group predicts Greater Baltimore's employment growth rate will be below the national average and that the region's unemployment rate will be higher than the U.S. jobless rate.

In a recently released economic report on Greater Baltimore, PNC Financial Services predicts a 1.6% job growth rate for Greater Baltimore as compared to 2.1% for the nation. The region's unemployment rate for 2015 will be slightly higher than the national average of 5.3% for 2015 at 5.5%. PNC in its report blamed the slower employment growth on the continued emphasis on federal spending restraint, although higher investment on cybersecurity will offset some of that impact.

PNC Financial Services Group Senior Economist Gus Faucher tells the Baltimore Business Journal, “I think the federal budget situation is holding back growth in Baltimore. Baltimore obviously is not as dependent on federal spending as the Washington, DC area, but it's still an important source of jobs and income. I think restraint in government is going to be a drag in growth in the Baltimore metropolitan area for the next few years at least.”

Faucher sees the cybersecurity sector as a nice niche market for Greater Baltimore, but adds, “It's an area that is likely to see growth, but it's not going to make the difference one way or the other for the Baltimore economy.” See story in the Baltimore Business Journal.