Montgomery County supports a diverse economy with approximately 459,000 jobs, accounting for 17 percent of total employment in the state of Maryland[1]. Anchored by federal employment, research and contracting dollars, the county has long enjoyed a stable and prosperous economic climate. With next-door access to the nation's capital, the county is home to an array of top federal scientific, medical and technology research centers. It also has a significant private sector presence with headquarters for 118 major companies. Further, Montgomery County is known for its highly ranked public schools, accessible health care, cultural and recreational facilities, and a wide mix of retail, restaurants, housing, and transit options. In turn, these assets maintain a strong market for employment in educational, healthcare, retail, and other supporting service sectors.

For decades, these local and regional economic advantages helped buffer the county from cyclic downturns, industrial decline, and other shocks besetting other parts of the nation. During the Great Recession, for example, unemployment in the county peaked at 6.0 percent compared to 10.6 percent nationally. Even so, the county is facing a new period of change and uncertainty. Despite a rich base of technology and talent on which to build a more diverse economy, the region remains heavily dependent on a federal sector that is no longer a reliable economic foundation. There has been a slowdown in hiring by high-wage, high-skill science, technology and other professional service industries that have been its economic foundation for decades. Job losses also have occurred in other high paying sectors, chiefly information and financial services. Robust employment growth in education, health care, leisure, and hospitality makes the overall employment picture appear stable. These jobs, however, pay significantly less than the jobs being lost. This pattern has been observed regionwide as well, suggesting that larger structural and cyclic economic forces are in play.

The Planning Department seeks a broad study of employment trends in the county and implications for land use and related policy decisions. Previous studies and economic development initiatives have looked narrowly at specific user types or industries targeted for growth. While our goal is to build on this research, it is important for this study to look more holistically across all sectors and job types to analyze what trends are shaping the economy and what this means for future planning and development impacts.

[1] As of March 2016, U.S. Bureau of Labor Statistics Quarterly Census of Earnings & Wages