Job Woes for Recent Veterans

Recently discharged veterans are struggling to find jobs due in part to employer concerns about their mental health, according to a 2007 study, Employment Histories Report, by the U.S. Department of Veterans Affairs (VA). A separate 2007 report by the U.S. Department of Labor shows continued high complaint levels from reservists who were unable to reclaim their old jobs after returning home from military service.

The VA survey found that 18 percent of veterans discharged in the last three years were unemployed. Among those who were employed, 25 percent earned less than $21,840 a year. The report largely attributed this to insufficient job support networks and mentoring. But it also found that employers showed reluctance to hire veterans due to concerns about their technological skills and education and their mental health and ability to adapt to civilian life. Employers interviewed for the report suggested that veterans were often perceived as being at risk of posttraumatic stress disorder. 

From 1991 to 2003 the average unemployment rate for veterans discharged within the previous two years was 9.5 percent, compared to 4.3 percent for a comparative sample of nonveterans. While government benefits and disability pay added to veterans’ total income, veterans still tended to receive lower wages and were more likely than nonveterans to be in low-income families for up to eight years after being discharged.

The survey showed that 48 percent of recent veterans used the GI Bill program, and 29 percent used the Transition Assistance Program. But the survey found that participation in the GI Bill program was not strongly linked to job successes, such as high earnings, increased responsibilities, or advancement opportunities. The study encourages the government to revamp and improve these programs and to promote veterans as capable employees.

According to the Labor Department report, reservists filed 1,357 complaints with the department in 2006. Most complaints were related to denials of old jobs or benefits after reservists returned from tours of duty in Iraq. While complaints remained high, they were down from the nearly 1,600 received in 2005, the highest level reached since 1991.

Since 1990, some 4.4 million service members have been discharged from active duty. The VA report surveyed 1,941 veterans who were discharged between December 2004 and December 2006. It was conducted by the consulting firm Abt Associates Inc. and is available online at http://www1.va.gov/vetdata/page.cfm?pg=5. For more information, contact Martin Stainthorp at martinstainthorp@povertylaw.org.