With the government workforce shrinking, job growth in Baltimore has slowed in the latter half of 2012, according to analysis from Jones Lang LaSalle.

Corresponding with an exceptionally slow third quarter for office leasing activity, employment gains in the Baltimore area have dropped off in the past several months.

The government payroll has dropped by 700 jobs since September 2011, but other key office occupying sectors such as education and health services have added 3,500 jobs over the same period.

"Labor trends in Baltimore matched up with the commercial real estate market going into the second half of 2012," noted Patrick Latimer, Research Analyst, Jones Lang LaSalle. "As employers in the Baltimore region slowed down on hiring and job growth turned flat, we saw office tenant activity drop as well."