The Maryland Chamber of Commerce, representing over 7,000 members, serves as the leading advocate for business in our state. Through collaborative partnerships with businesses, policymakers and stakeholders, we work to shape strong public policies that drive economic growth to benefit people, businesses and communities.
Our 2026 Index, now in color, is published with support from the following organizations:
Presenting Sponsor
Touchstone Sponsors
• T. Rowe Price
• WesBanco
Advocate Sponsors
• Giant Food
• Johns Hopkins University
• McCormick & Company
• Salisbury Area Chamber of Commerce
• Verizon
• W. L. Gore & Associates
Supporting Sponsors
• Carroll County Chamber of Commerce
• Maryland Tourism Coalition
• Ocean City, Maryland Chamber of Commerce
• The Terminal Corporation
Learn more at mdchamber.org/competitiveness
Our Mission
The mission of the Maryland Chamber of Commerce is to advance inclusive partnerships for a Maryland where all businesses and their communities thrive.
Forward
Powering Maryland’s Economic Competitiveness
As presenting sponsor of the 2026 Competitiveness Index, Comcast is proud to support Maryland’s business community and the Maryland Chamber’s ongoing efforts to strengthen the state’s economic foundation.
A thriving economy requires collaboration, innovation and informed decision-making. The Competitiveness Index provides a clear, data-driven look at the factors shaping Maryland’s ability to compete — from workforce and job growth to affordability, infrastructure and the cost of doing business. These insights help business leaders, policymakers and stakeholders understand where Maryland stands today and where action is needed to support long-term growth and opportunity.
Comcast is a strong economic partner in Maryland — including investing more than $900 million in our fiber rich network across the state over the past three years and connecting thousands of businesses to our advanced connectivity services.
Comcast is committed to connecting people, ideas and businesses throughout Maryland, and we are proud to partner with the Maryland Chamber to highlight the trends and challenges shaping the state’s economic future.
Comcast Maryland Team
At a Glance Key Trends to Watch in the 2026 Competitiveness Index
Maryland has incredible strengths — world-class talent, innovative industries and a strategic location at the center of the Mid-Atlantic economy. Yet even with these advantages, Maryland is competing head-to-head with other states for jobs, people and business investment — and the stakes are high.
That’s why the Maryland Chamber created the Competitiveness Index: a clear, data-driven snapshot of how our state compares across the nation on the metrics that matter most to employers and working families. The Index is built on neutral data from trusted sources, so decision-makers can focus on facts — not assumptions.
Now entering its fourth year, the Index helps us track trends over time — highlighting where Maryland is gaining ground, where we’re falling behind, and where we see the biggest opportunities to strengthen affordability, economic growth, and long-term competitiveness.
At the heart of this work is a simple reality: Maryland’s businesses are essential to the state’s future. They create jobs, support families, strengthen communities, and fuel the resources that fund public priorities. The question is not whether Maryland should compete — it’s whether we will take the steps needed to ensure employers and talent continue choosing Maryland.
Our goal is straightforward: focus on what’s working, flag the trends we can’t ignore, and advance practical, growthoriented policies that make Maryland a place where businesses and people can stay, grow, and invest.
If we build on our strengths and stay focused on the fundamentals, Maryland can be a state where employers expand with confidence, families can afford to put down roots, and opportunity continues to grow.
Mary D. Kane President & CEO, Maryland Chamber of Commerce
How to Use the Index
Our Competitiveness Index translates complex economic data into clear signals for action — helping leaders strengthen growth, affordability and long-term competitiveness in a fast-changing national economy. Each table is designed to be a fast, practical snapshot:
What the metric measures: Why it matters for Maryland’s competitiveness, business growth and affordability.
Maryland’s result and rank: How Maryland compares nationally. In most cases, a lower rank reflects stronger competitiveness. For metrics that track costs or burdens, higher ranks may signal higher costs — making context critical when interpreting results.
Trend signal (our direction of travel): A quick indicator of whether Maryland is improving, holding steady, or moving in the wrong direction. Modest signals indicate directional change that is real, but limited in scale or offset by additional factors.
Improved / Modest Improvement — Maryland moved in a better direction compared to last year
Mixed Results — progress in one measure, but challenges remain in another
Declined / Modest Decline — Maryland moved in a worse direction, or cost pressures increased
No Change — limited change year-over-year
No New Data / Information Only — data not updated this cycle (or new table establishing a starting point)
What this means for Maryland (or why it matters): A plainlanguage takeaway you can share with business leaders, policymakers and partners.
How to read our analysis: Our analysis combines neutral data from trusted sources with informed judgment about what matters most for long-term competitiveness. In some cases, that means weighing mixed signals, prioritizing
trends over single-year results, or focusing on real-world implications rather than rankings alone. You may not agree with every takeaway — and that’s part of the purpose. The data is neutral; our role is to interpret what it suggests for Maryland and present it in practical terms leaders can use.
Introduction Charting Maryland’s Future: A Call to Action for Growth
Maryland continues to show real strengths — but the data also points to several areas where the state is under pressure in the national competition for talent, jobs, and investment. This year’s Index highlights a few clear themes:
• Population growth is back, but momentum is still fragile International migration is helping offset losses, yet Maryland ranks 45th for domestic migration — one of the worst outmigration trends in the country — which matters for our workforce, tax base and long-term economic growth.
• Job growth remains very low. Maryland added jobs this year, but job growth ranked 37th nationally, a sign we’re not keeping pace with competitor states in attracting business expansion and new opportunities.
• Business formation is improving, but survival and scale remain the challenge. New business openings are moving in the right direction, but they are only narrowly outpacing closures — and Maryland still needs stronger conditions for businesses to grow, stay and create jobs here.
• Maryland’s economy is growing, but long-term momentum matters. GDP continues to rise, but the bigger question is whether Maryland is growing fast enough to strengthen our fiscal outlook and keep pace with neighbors.
(Continued on reverse)
• Cost pressures remain a consistent challenge. Taxes, energy costs and housing affordability continue to shape whether employers can grow here — and whether families can afford to stay in the state.
• Housing affordability is worsening across major metro regions. Home prices are outpacing incomes, and limited supply — driven by long timelines, high costs and regulatory barriers — makes it harder for workers to live near jobs.
• Infrastructure and mobility can’t be ignored — and require strategy and sustainable funding. Long commute times and low roadway investment remain real constraints, and Maryland’s long-term success depends on reliable connections that help workers reach jobs, businesses reach customers and families choose to live and work here.
• Maryland’s talent and innovation strengths remain a major advantage. Educational attainment and R&D performance continue to stand out nationally — and the opportunity is making sure more of that talent stays here, builds careers here and drives business growth here.
State Populations
Maryland’s population increased this year, which is a sign of modest progress for our workforce and long-term growth. But because growth is still under 1% (and under 50,000 residents), the momentum remains fragile — and the drivers of growth matter for long-term competitiveness.
Age Group by Percentage of Population (2024)
WHAT THIS MEANS FOR MARYLAND
Maryland continues to benefit from a strong share of residents in prime working years — an important advantage for employers. The slight shift is a reminder that competitiveness depends on keeping Maryland attractive for working families through opportunity, affordability and job growth.
Net Migration by State
Maryland continues to attract new residents from abroad, which supports workforce growth. At the same time, persistent domestic out-migration suggests Maryland is losing ground in the competition for working families and talent — influenced by affordability, job
and
Non-Agricultural Employment Growth
WHY IT MATTERS
Maryland added jobs this year — a positive sign of continued economic activity. However, job gains and overall growth slowed compared with last year, highlighting that progress remains modest and the momentum is still fragile compared with many states.
Non-Agricultural Employment Growth (10 year) (Aug. 2015 – Aug. 2025)
WHAT THIS MEANS FOR MARYLAND
Maryland has added jobs over the past decade, and this year shows progress in the right direction. But long-term job growth remains mid-pack nationally, reinforcing the need for a more competitive environment that supports steady expansion and hiring.
Per Capita Personal Income by State (2024)
WHY IT MATTERS
Maryland continues to rank among the nation’s leaders in per-person income — a meaningful economic strength. The opportunity is ensuring this strength translates into broad growth statewide by supporting job creation and a business climate that encourages investment.
Gross Domestic Product by State in Current Dollars (2024)
Maryland’s economy continued to grow this year, and its GDP growth ranked stronger compared to many states — an encouraging sign of momentum. At the same time, growth was slightly slower than last year, underscoring the importance of sustaining progress through a competitive environment
Exports Per Capita (2024)
WHY IT MATTERS
Maryland businesses export billions of dollars in goods and services — a strong foundation to build on. But exports per person remain relatively low, suggesting an opportunity to strengthen growth conditions so more firms can expand into new markets.
Opening and Closing Rates of Establishments
(Q1 2024 – Q4 2024)
Maryland saw stronger business formation this year — a positive sign of entrepreneurial energy. The next step is ensuring more businesses can stay, scale and succeed here, which depends on predictable costs and a competitive climate for growth.
WHY IT MATTERS
Maryland’s
Improving
while keeping
Taxes Paid by Business (FY 2023)
Some Maryland business tax indicators show modest improvement, but we continue to rank poorly on key competitiveness measures and remain a highcost state for employers. A smaller share of total taxes paid by businesses does not mean taxes are low — it reflects how the tax system is structured.
WHAT THIS MEANS FOR MARYLAND
Maryland’s fuel tax rates remained relatively steady this year, continuing to contribute to the cost of commuting and moving goods. Because fuel taxes support the Transportation Trust Fund, long-term transportation funding sustainability matters — especially as vehicle trends change and evolve.
Maryland has clear strengths, but overall competitiveness remains mid-pack nationally. Strengthening the fundamentals that drive growth — especially cost and business climate factors — can help Maryland translate its advantages into stronger outcomes.
Source: Lincoln Institute of Land Policy/Minnesota Center for Fiscal Excellence
Effective Property Tax Rate on a Primary Residence in the State’s Largest City (Payable 2024)
WHY IT MATTERS
Commercial property taxes are a direct cost of doing business, and Maryland’s largest-city tax burden remains a competitiveness challenge. Improving the cost climate helps employers invest, expand and create jobs.
Source:
Effective
Property Tax Rate on an Industrial Property* in the State’s Largest City (Payable 2024)
WHAT DOES THIS MEAN?
Maryland’s public workforce indicators shifted this year, reflecting changes in staffing and compensation. The competitiveness priority is ensuring public resources deliver strong outcomes efficiently while supporting a cost climate that enables private-sector growth.
DOES THIS MEAN?
Competitive public compensation can support service delivery and talent retention, but it is also a meaningful cost signal. Maryland’s long-term success depends on balancing strong public outcomes with a
WHY IT MATTERS
Maryland continues to stand out as a high-wage, high-skill tech state — a major competitive advantage. Tech wages rose and Maryland’s wage ranking improved, even as overall tech employment levels held relatively steady. Protecting this strength will require a competitive environment.
Wages and Productivity of Production Workers in
Annual Average Investment Per Employee in Manufacturing (2021)
WHY IT MATTERS
Manufacturing investment is a strong indicator of whether firms are modernizing and expanding capacity. With no updated
and
Union Members as a Share of Employment (2024)
Maryland’s
Union Membership – Public vs. Private (2024)
WHY IT MATTERS
Maryland’s union membership patterns differ sharply between the public and private sectors, reflecting distinct workforce structures. Maintaining competitiveness means supporting job growth across the private sector while ensuring Maryland remains attractive for employers and workers alike.
Source:
Barry T. Hirsch, David A. Macpherson, and William E. Even
Maryland’s average unemployment insurance tax per employee decreased in the most recent year — a positive sign for employer cost pressures. At the same time, the share of wages paid toward unemployment insurance increased, suggesting the overall burden can still vary.
Regular Unemployment Insurance Payments
(2nd Quarter 2025)
WHY IT MATTERS
Maryland’s unemployment benefit levels remain in line with many states, while benefit duration remains comparatively high. Longer benefit duration can signal challenges in connecting workers to new jobs quickly, reinforcing the importance of strong job growth and efficient pathways back to work.
Workers’ Compensation – Benefits Paid
WHAT THIS MEANS FOR MARYLAND
State Minimum Wage
WHY IT MATTERS
Maryland’s minimum wage remained $15 this year, continuing to rank among the higher wage floors nationally. Other states raised their minimum wages, reflecting a changing national landscape. The competitiveness focus is supporting strong earnings while ensuring employers can continue hiring.
Economic, Fiscal, and Regulatory Freedom (2022)
Economic and regulatory climate strongly influence whether businesses expand, invest and create jobs in a state. Even without updated data this cycle, the long-term competitiveness takeaway
oriented policy environments support stronger outcomes.
WHY IT MATTERS
Tort costs are one component of the overall cost structure that affects both households and employers. Understanding these costs helps inform how Maryland compares competitively and how the business environment can support investment and growth.
Maryland continues to attract venture capital, but investment levels fell this year — a sign of softer momentum compared with top-performing states. Strengthening competitiveness can help Maryland grow its startup pipeline and keep more high-growth firms scaling here.
Overall R&D Spending (2022)
WHY IT MATTERS
Maryland remains a national leader in research and development — a major competitive advantage that supports high-skill jobs and long-term growth. The opportunity is translating R&D strength into more business formation, commercialization and job creation across the economy.
R&D Per Capita by Performing Sector (2023)
Science, Engineering, and Health Doctorates
WHAT THIS MEANS FOR MARYLAND
Maryland continues to rank among top states for advanced scientific and technical talent — a major asset for innovation-driven growth. Strengthening the broader business climate helps ensure Maryland retains this talent and expands the industries that rely on it.
Educational Attainment
of Population 25 and Older (2024)
Maryland remains a national leader in educational attainment, continuing to rank among the top states for bachelor’s and advanced degrees. The opportunity is ensuring this advantage translates into stronger job growth and more opportunities for residents across industries statewide.
Higher Education Total Fall Enrollment as
Percentage of
Population:
Public vs. Private (Fall 2022)
WHY IT MATTERS
Higher education participation helps shape Maryland’s long-term talent pipeline. Even without updated data this cycle, the competitiveness goal remains supporting pathways that connect education to employment and keep skilled workers in Maryland.
U.S. Department of Education
Fall Enrollment as Percentage of Population: Public
Public higher education enrollment helps build Maryland’s long-term workforce pipeline and supports access to credentials. Even without updated data this cycle, the opportunity is strengthening pathways that align education with high-demand jobs.
Fall Enrollment
as Percentage of Population: Private (Fall 2021)
WHY IT MATTERS
Private colleges and universities are an important part of Maryland’s education ecosystem and talent pipeline. Strengthening connections between education and employment helps ensure graduates can build careers in Maryland.
Import/Export
Ratio of College-Bound High School Graduates (Fall 2022)
WHY IT MATTERS
Whether Maryland keeps college-bound graduates is a meaningful long-term competitiveness signal. Retaining more young talent depends on creating a strong job market, affordability, and clear opportunities for graduates to build careers in Maryland.
National Assessment of Educational Progress (2024)
Maryland’s latest NAEP results show encouraging progress in reading and math — a positive signal for long-term workforce readiness. Maryland’s competitiveness depends on sustaining improvements in outcomes while ensuring families and employers see value from public investments. WHY IT MATTERS
Estimated Public School Spending Per
Pupil (SY 2022-23)
WHY IT MATTERS
Maryland’s per-pupil spending rose again this year, alongside encouraging improvement in student outcomes. The priority is sustaining progress while keeping education costs manageable over time.
Partisan Composition of State Governments
(Aug. 29, 2025)
Maryland
WHY IT MATTERS
Maryland’s industrial electricity prices rose slightly this year and remain relatively high compared to many states. Because energy reliability and supply conditions influence costs over time, maintaining a stable, affordable energy environment is particularly important for industrial employers.
Average
Retail Price Per KwH for Commercial Customers (2023 – 2024)
Maryland’s commercial electricity prices increased again this year, adding to day-to-day operating costs for employers. Keeping energy reliable and affordable supports small businesses and major employers alike — and helps Maryland remain competitive for growth and investment.
Average Retail Price Per KwH for Residential Customers (2023 – 2024)
WHY IT MATTERS
Maryland’s residential electricity prices rose again this year, increasing costof-living pressure for households. Because affordability affects workforce retention and long-term economic growth, maintaining reliable and costcompetitive energy is an important competitiveness priority.
Generation of Energy Resources (2024)
Maryland’s
Generation of Energy Resources, cont.
WHAT DOES THIS MEAN?
Work-from-home rates eased slightly this year, suggesting changing work patterns that can influence commuting, workforce preferences and business operations. A competitive environment supports both employers and workers as workplace models continue to evolve.
Percentage
of Workers Who Worked From Home (2024)
Petersburg-Clearwater, FL
NC-SC
Phoenix-Mesa-Chandler, AZ Metro Area 12 Minneapolis-St. Paul-Bloomington, MN-WI Metro Area 13 Jacksonville, FL Metro Area 14 Columbus, OH Metro Area
15 Orlando-Kissimmee-Sanford, FL Metro Area
16 Nashville-Davidson--Murfreesboro--Franklin, TN Metro Area
17 Sacramento-Roseville-Folsom, CA Metro Area
18 Salt Lake City-Murray, UT Metro Area
19 Boston-Cambridge-Newton, MA-NH Metro Area
20 San Diego-Chula Vista-Carlsbad, CA Metro Area
21 Richmond, VA Metro Area
22 Pittsburgh, PA Metro Area
23 Dallas-Fort Worth-Arlington, TX Metro Area
24 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Metro Area
25 Baltimore-Columbia-Towson, MD Metro Area
26 Los Angeles-Long Beach-Anaheim, CA Metro Area 27 Chicago-Naperville-Elgin, IL-IN Metro Area
28 Kansas City, MO-KS Metro Area
29 San Jose-Sunnyvale-Santa Clara, CA Metro Area
30 Miami-Fort Lauderdale-West Palm Beach, FL Metro Area
31 Hartford-West Hartford-East Hartford, CT Metro Area
32 Indianapolis-Carmel-Greenwood, IN Metro Area
33 Cleveland, OH Metro Area
34 San Antonio-New Braunfels, TX Metro Area
35 St. Louis, MO-IL Metro Area
36 Milwaukee-Waukesha, WI Metro Area
37 New York-Newark-Jersey City, NY-NJ Metro Area
38 Cincinnati, OH-KY-IN Metro Area
39 Detroit-Warren-Dearborn, MI Metro Area
40 Louisville/Jefferson County, KY-IN Metro Area
41 Houston-Pasadena-The Woodlands, TX Metro Area
42 Las Vegas-Henderson-North Las Vegas, NV Metro Area
43 Grand Rapids-Wyoming-Kentwood, MI Metro Area
44 Virginia Beach-Chesapeake-Norfolk, VA-NC Metro Area
45 Providence-Warwick, RI-MA Metro Area
46 Riverside-San Bernardino-Ontario, CA Metro Area
47 Birmingham, AL Metro Area
48 Oklahoma City, OK Metro Area
49 Memphis, TN-MS-AR Metro Area
50 Fresno, CA Metro Area
Work-from-home rates eased slightly this year, suggesting changing work patterns that can influence commuting, workforce preferences and business operations. A competitive environment supports both employers and workers as workplace models continue to evolve.
Percentage of Workers Who Worked From Home, cont. (2024)
Airport On-Time Performance
BWI’s on-time performance moved in a better direction this year — a positive operational signal. Reliable air travel matters for Maryland’s business connectivity and competitiveness, especially for employers that depend on efficient travel and freight movement. WHY IT MATTERS
State Expenditures on Roadways (2022)
WHY IT MATTERS
Maryland’s roadway spending increased slightly this year, but the state continues to rank relatively low overall. Maintenance investment improved, while capital investment fell behind other states — highlighting the importance of prioritizing reliable infrastructure that supports the state.
Source: U.S. Department of Commerce:
Health Care Expenditures Per Capita (2024)
Percentage Without Health Insurance by
State by Age (2024)
WHAT THIS MEANS FOR MARYLAND
Maryland’s overall uninsured rate remained steady this year, supporting coverage stability for residents and employers. Important to note: the uninsured rate increased for residents age 65+, a trend worth watching.
Percent of Privately Insured Persons with Employment-Based Insurance (2024)
Maryland remains a top state for employer-sponsored
—
State and Local Government Health and Hospital Spending (2023)
WHY IT MATTERS
Maryland’s state and local government spending on health and hospitals decreased this year and remains low compared with other states. This measure provides context on public-sector costs and fiscal capacity, which can influence long-term affordability and budget flexibility.
Occupational Injury and Illness Incidence (2023)
Housing Price Appreciation (2nd
WHAT THIS MEANS FOR MARYLAND
Housing appreciation moderated this year, which can ease short-term affordability pressure. But Maryland’s long-term competitiveness depends on keeping housing accessible for working families while supporting stable growth and community investment.
Recent
Home Ownership Rates
(2nd Quarter 2020 – 2nd Quarter 2025)
WHY IT MATTERS
Housing affordability declined in Maryland’s major metro areas in the most recent year, with higher price-to-income ratios in both the Washington D.C. and Baltimore regions.
WHAT THIS MEANS FOR MARYLAND
Maryland’s overall tax competitiveness ranking remained near the bottom nationally this year. While some categories improved slightly, the overall structure continues to be a long-term competitiveness challenge that can influence business expansion decisions.
