Workforce and Economic Development

Workforce and economic development indicators from 2021 offer a snapshot of the ongoing pandemic recovery impacting all communities in Baltimore. The Baltimore Metropolitan Council’s recovery dashboard, which tracked employment by industry and jurisdiction, shows that while employment in the hard-hit restaurant industry dropped to 6,798 in April 2020, by December 2021, the number of employees in this sector rose to 13,346. This end-of-year count, approaches pre-pandemic figures for the restaurant industry. ^[1]   The Downtown Partnership also pointed signs of recovery in their annual State of Downtown report. ^[2]   

But, recovery, much like the pandemic itself, impacted Baltimore residents unevenly. A report from the Greater Baltimore Committee and Townson University found that a significant percentage of women in the Baltimore region reported, “being overloaded with work, discriminated against at their workplace, or unsatisfied with their job during the COVID-19 pandemic.” ^[3]   Further, as discussed in our Business Age indicators below, new businesses were hit hard by the pandemic. There were fewer businesses one-year old or less and two-years old or less in Baltimore in 2021 than observed in previous years. These indicators suggest that not only did the pandemic delay or halt plans for new businesses, but it also disrupted the operations of businesses just finding their footing. Looking ahead to future Vital Signs, this is an indicator to watch for long-term recovery. 

The federal government, through the American Rescue Plan Act (ARPA), provided $641 million to the City of Baltimore to respond to the pandemic and its economic impacts. In November of 2021, Mayor Brandon Scott announced that $55 million of these funds would be devoted to workforce development and the creation of an Economic Recovery Fund. ^[4]   While these projects are still ongoing – this investment signaled a growing recognition amongst city leaders that marginalized and historically disinvested communities bore the brunt of the pandemic’s impacts.

The move to virtual workplaces and classrooms also highlighted the pressing challenge of digital equity. During 2017-2021, 15.9% of households in Baltimore did not have access to the internet at home. A report written by John B. Horrigan, Ph.D. studying internet access in the state of Maryland found that “While digital adoption in rural areas is an issue, the weight of these gaps falls heavily in urban and metro areas and among African American households. There are 206,000 African American households without wireline broadband service connection in Maryland, or nearly 40% of all disconnected households.” ^[5]   BNIA-JFI in partnership with Dr. Horrigan, the Community Development Network of Maryland, and the Abell Foundation, built a Digital Equity Scorecard of the state. ^[6]   This research and tool have been used by advocacy groups and coalitions, including the Baltimore Digital Equity Coalition, working to reduce Baltimore’s digital divide.

Vital Signs 21 tracks eighteen workforce and economic development indicators for Community Statistical Areas (CSAs) that measure the City’s progress toward sustainable economic development. These indicators highlight Baltimore as both a source of labor and a center of economic activity. Indicators are grouped into the following categories: labor force participation and employment; educational attainment; commercial investment activity; business size and age; neighborhood businesses; and regional dynamics.

These indicators provide fundamental data on the City’s economic assets and can inform data-driven decision-making processes.

Data for Vital Signs 21 Workforce and Economic Development indicators come from the 2017–2021 American Community Survey (ACS), InfoUSA, the Baltimore City Department of Housing and Community Development, the Longitudinal Employer-Household Dynamics (LEHD) database, and the Johns Hopkins University 21st Century City Initiative. When possible, indicators are created by normalizing data by the number of residents, businesses, or commercial properties to establish rates that allow for comparison across neighborhoods and over time.

The number of total jobs comes from the Longitudinal Employer-Household Dynamics (LEHD) database. ^[7]   Including this indicator enables the ability to track labor dynamics year-over-year, giving even more insight into the health of Baltimore City’s economy. The LEHD database was updated in December 2023 to include data through 2020.

Between 2019 and 2020, the total number of jobs in Baltimore City decreased from 348,824 to 338,318. In 2020, the CSAs with the largest number of jobs were Downtown/Seton Hill (77,294), Oldtown/ Middle East (30,384), and Southeastern (24,671). The CSAs with the smallest number of jobs were Edmondson Village (155), Dickeyville/Franklintown (218), and Madison/East End (332).

Residents of Baltimore City of working age fall into three main categories: in the labor force (employed), in the labor force and actively seeking employment (unemployed), and those who are not in the labor force either by choice or by circumstance. Residents not actively seeking a job are classified as not in the labor force.

Between 2012–2016 and 2017–2021, the percentage of employed working-age city residents increased from 61.6% to 65.6%. During 2017–2021, the CSAs with the highest percentage of working-age residents who were employed included Canton (87.2%), South Baltimore (86.7%), and Highlandtown (86.6%)

The CSAs with the lowest percentage of working-age residents who were employed included Oldtown/Middle East (41.8%) and Sandtown-Winchester/Harlem Park (46.7%).

Between 2012–2016 and 2017–2021, the percentage of employed working-age city residents decreased from 8.9% to 5.3%. During 2017–2021, the CSAs with the highest percentage of unemployed persons looking for work were Midway/Coldstream (14.5%), Upton/Druid Heights (11.9%), and Greater Govans (11.6%). The CSAs with the lowest percentage of unemployed persons seeking work lived in Fells Point (0.9%), and Orchard Ridge/Armisted (1.1%).

Between 2012–2016 and 2017–2021, the percentage of residents not in the labor force decreased from 30.3% to 29.0%. During 2017–2021, the CSAs with highest percentage of residents not in the labor force included Oldtown/Middle East (50.1%), Sandtown-Winchester/Harlem Park (46.2%), and Madison/East End (44.5%). The CSAs with the lowest percentage were Canton (9.1%), Highlandtown (10.8%), and South Baltimore (11.0%).

The unemployment rate is the share of jobless persons looking for work in Baltimore City divided by the total number of residents in the labor force. Between 2012–2016 and 2017–2021, the unemployment rate decreased from 12.8% to 7.5%. The unemployment rate by CSA from 2017–2021 ranged from a low of 1.1% in Fells Point to a high of 23.4% in Midway/Coldstream.

Vital Signs 21 tracks the percentage of residents from each CSA who work outside the city using the Longitudinal Employer-Household Dynamics (LEHD) data. Approximately 25% of all jobs in the metropolitan area are located in Baltimore City, which means that many Baltimore residents need access to some form of transportation to the 75% of jobs located elsewhere in the region.

Between 2019 and 2020, the percentage of Baltimore City’s residents who commuted to work outside of the city slightly decreased from 55.3% to 55.0%. The CSAs with the smallest percentage of workers that commute outside of the city were Downtown/Seton Hill (45.6%), Fells Point (46.6%), and Hampden/ Remington (47.2%) The CSAs where the largest percentage of workers commuted outside of the city to work were Brooklyn/Curtis Bay/Hawkins Point (72.0%), Morrell Park/Violetville (70.1%), and Westport/Mount Winans/Lakeland (67.1%).

Educational training is generally considered the major pathway to employment. Education at the level of a bachelor’s degree or higher influences lifetime potential earnings and increases the likelihood that individuals will earn a living wage. Vital Signs 21 tracks three indicators on educational attainment for the multiple stages from high school through college education. These categories are mutually exclusive in that a survey respondent can only be in one category, and the total of the three categories sums to 100%.

Between 2012–2016 and 2017–2021, the percent of Baltimore residents over the age of 25 without a high school diploma decreased from 16.5% to 13.7%. During 2017-2021, the CSAs with the largest percentage of residents without a high school diploma were Southeastern (34.2%), Westport/Mount Winans/Lakeland (34.2%), and Brooklyn/Curtis Bay/Hawkins Point (30.4%). The CSAs with the smallest percentage were Greater Roland Park/Poplar Hill (1.3%), North Baltimore/Guilford/Homeland (3.3%), and Downtown/Seton Hill (3.6%).

During the 2017–2021 time period, more than half (52.1%) of the city’s residents over the age of 25 had a high school diploma, have completed some college, and/or received an associate’s degree. The CSAs with the largest percentage of residents over the age of 25 with a high school degree, some college, or an associate degree were Greater Rosemont (74.9%), Cherry Hill (73.9%), and Allendale/Irvington/S. Hilton (73%). The CSAs with the smallest percentage were Greater Roland Park/Poplar Hill (15.5%), Canton (15.6%), and Inner Harbor/Federal Hill (18.9%).

Between 2012–2016 and 2017–2021, the percent of residents over the age of 25 with a Bachelor’s degree, a Graduate degree, or a Professional degree increased from 29.7% to 34.2%. During 2017-2021, the CSAs with the highest percentage of residents with a Bachelor’s degree or above were Greater Roland Park/Poplar Hill (83.3%), Canton (79.7%), and North Baltimore/Guilford/Homeland (76.1%). The CSAs with the lowest percentage of residents with college degrees were Sandtown-Winchester/Harlem Park (7%), Greater Rosemont (7.8%), and Southeastern (8.2%).

Access to the internet is becoming increasingly important not just for communication, but as a critical means to obtain an education and conduct business. ^[8]  The COVID-19 pandemic brought the importance of this critical infrastructure into stark relief. As classrooms and workspaces moved online, organizations, like the Enoch Pratt Free Library mobilized to lessen the digital divide. Access to the internet and digital resources is not equally distributed in all Baltimore neighborhoods.

During 2017-2021, 15.9% of households in Baltimore did not have access to the internet at home. ^[9]  The CSAs with the highest percentage of households with no internet were Greater Rosemont (37.9%), Sandtown-Winchester/Harlem Park (35.9%), and Forest Park/Walbrook (35.1%). The CSAs with the lowest percentage of households with no internet were Greater Roland Park/Poplar Hill (2.9%), South Baltimore (3.2%), and Canton (3.5%).

Commercial properties and establishments in neighborhoods are an important part of urban life for the jobs, the amenities they provide. Upkeep of commercial properties is an indicator of commercial investment and is equally important to owners of residential properties in the area as their respective values are mutually dependent.

The number of commercial properties in Baltimore City was 15,073 in 2021. The CSAs with the highest number of commercial properties were Downtown/Seton Hill (1,143), Brooklyn/Curtis Bay/Hawkins Point (755), Midtown (749), and Southwest Baltimore (643). The CSA’s with the lowest number of commercial properties were Cross-Country/Cheswolde (27), Edmondson Village (32), Dickeyville/ Franklintown (33), and Beechfield/Ten Hills/West Hills (45).

In 2021, the percentage of commercial properties that applied for and received a rehabilitation permit greater than $5,000 was 11%. This is a decline of 0.3% in 2020. In 2021, the CSAs with the largest percentage of commercial businesses with rehabilitation permits greater than $5,000 were Loch Raven (57.7%) and Northwood (49.2%). The CSAs with the smallest percentage of commercial properties with a rehabilitation permit were Dorchester/Ashburton (2.6%), Midway/Coldstream (3.23%), and Upton/Druid Heights (3.9%).

The majority of businesses in the United States are small to mid-size firms. ^[10]  Aside from clusters of major business activity in the downtown or regional centers, most firms are located in Baltimore’s neighborhoods. The ability to start and sustain a business is often related to the environment in the surrounding area that enables entrepreneurship and viability.

Overall in 2021, Baltimore City had 19,017 businesses. The CSAs with the highest number of businesses were Downtown/ Seton Hill (2,697), Oldtown/Middle East (1,317), and Midtown (971). The CSAs with the lowest number of businesses were Edmondson Village (52) and Dickeyville/Franklintown (59).

In 2021, the number of small businesses (businesses reporting fewer than 50 employees) in Baltimore City was 17,256. The CSAs with the highest number of small businesses were Downtown/Seton Hill (2,396), Oldtown/Middle East (1,222), and Midtown (867). The CSAs with the lowest number of small businesses were Edmondson Village (49), Dickeyville/Franklintown (53), and Penn North/Reservoir Hill (90).

In 2021, 4.6% of businesses located in Baltimore City were less than one year old. The CSAs with the highest percentage of businesses less than one year old were located in Oldtown/Middle East (10.5%), Loch Raven (7.9%), and Pimlico/Arlington/Hilltop (7.4%). The CSAs with the lowest percent were Southern Park Heights (1.3%), Dickeyville/Franklintown (1.7%), and Clifton-Berea (1.7%).

In 2021, the percentage of businesses located in Baltimore City that were less than two years old was 12.2%. The CSAs with the highest percentage of firms that were less than two years old were Dickeyville/Franklintown (30.5%), Oldtown/Middle East (30.3%), and Greater Charles Village/Barclay (16.7%). The CSAs with the lowest percentage of firms that were less than two years old were Sandtown-Winchester/Harlem Park (3.5%), Greenmount East (4.6%), and Southern Park Heights (5.1%).

In 2021, the percentage of businesses located in Baltimore City that were less than four years old was 23.4%. The CSAs with the highest percentage of firms that were less than four years old were Oldtown/Middle East (48.7%), Dickeyville/Franklintown (32.2%), and Pimlico/Arlington/Hilltop (29.9%). The CSAs with the lowest percentage of firms that were less than four years old were Westport/Mount Winans/Lakeland (9.7%), Sandtown-Winchester/Harlem Park (10.5%), and Penn North/Reservoir Hill (13.4%).

Access to neighborhood amenities such as neighborhood-serving businesses helps attract and retain residents to an area, especially in an urban context. Neighborhood businesses for the following Vital Signs 21 indicators include establishments such as coffee shops, restaurants, doctors’ offices, grocery stores, and retail shops.

The number of neighborhood businesses in Baltimore City in 2021 was 13,720. The greatest number of neighborhood businesses were located in Downtown/Seton Hill (2,076), Oldtown/Middle East (1,227), and Greater Charles Village/Barclay (677). The smallest number of neighborhood businesses were located in Edmondson Village (36) and Dickeyville/Franklintown (43).

In 2021, there were 23.4 neighborhood businesses per 1,000 residents in Baltimore City. The CSAs with the largest number of neighborhood businesses per 1,000 residents included Downtown/Seton Hill (219.7 per 1,000 residents), Oldtown/Middle East (122.6 per 1,000 residents), and Harbor East/Little Italy (59.3 per 1,000 residents). The CSAs with the smallest number of neighborhood businesses per 1,000 residents include Edmondson Village (5.1 per 1,000 residents), Northwood (5.1 per 1,000 residents), and Beechfield/Ten Hills/West Hills (6.3 per 1,000 residents).

The number of persons employed in neighborhood businesses in Baltimore City in 2020 was 252,085. The CSAs with the largest number of employees in neighborhood businesses included Downtown/Seton Hill (59,764), South Baltimore (20,246), and Oldtown/Middle East (19,507). The CSAs with the fewest number of employees in neighborhood businesses included Edmondson Village (127), Penn North/Reservoir Hill (338), and Greater Govans (375).

Although not as easily visible as the presence of businesses within a neighborhood, the nature of how a neighborhood can access money is a critical component to supporting all kinds of economic activity. Baltimore’s small businesses form the backbone of the local economy, providing tax revenue for the city, jobs for residents, and services and identities to neighborhoods and commercial districts. For residents, if traditional financial institutions do not exist in their neighborhoods, access to capital for either business or personal reasons can be difficult. Additionally, saving money or obtaining a credit record is often difficult without bank presence.

Based on research by the 21st Century Cities Initiative at Johns Hopkins University, the flow of commercial loans, microloans, venture capital, and other equity investments can help better understand whether the financing system catering to Baltimore’s small businesses in all neighborhoods.

Between 2019 and 2020, the total dollar amount invested in small businesses per 50 businesses increased from $5.0 million to $3.7 million. In 2020, the CSAs with the greatest amount invested in small businesses per 50 businesses were Inner Harbor/Federal Hill ($39.3 million) and South Baltimore ($30.7 million).

The CSAs with the least amount invested in small businesses per 50 businesses were Dickeyville/Franklintown ($0.33 million) and Pimlico/Arlington/Hilltop ($0.40 million).

The number of banks and bank branches has remained consistent in Baltimore since 2011. In 2021, there were 0.2 banks and bank branches per 1,000 residents in Baltimore City. The greatest number of banks and bank branches per 1,000 residents were located in Downtown/Seton Hill (1.5), Greater Roland Park/Poplar Hill (0.8), and Harbor East/Little Italy (0.8). In 2021, there were 20 CSAs that had no banks or bank branches located within the CSA, a decrease from 21 CSAs in 2020.