Veterans’ Employment

Veterans’ Employment

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Updated July 20, 2021
Veterans’ Employment
Veterans’ employment outcomes are a topic of ongoing
9/11 veterans and non-veterans during the period depicted
congressional interest. This In Focus provides a summary
in the figure.
of the recent performance of former members of the Armed
Forces in the civilian labor market and brief descriptions of
Overview of Veteran Employment
major federal programs and policies that support veterans’
Programs
employment.
The remainder of this report describes major federal
programs that support veterans in the civilian labor market.
Performance of Veterans in the
Federal programs that target smaller subsets of veterans,
Labor Market
such as the Homeless Veterans Reintegration Program, are
Veterans account for about 6% of the civilian labor force.
not included. In addition to federal efforts, there are
Approximately 40% of veterans in the labor force served
substantial state, local, and private initiatives that support
after September 2001 (Post-9/11 veterans) and the
veterans’ employment outcomes (these initiatives are
remainder served in prior periods.
beyond the scope of this report).
Figure 1 depicts the 12-month moving average
The programs described target veterans, though specific
unemployment rate for Post-9/11 veterans, veterans from
eligibility criteria vary. Some programs may only be
prior service periods (shown as “other veterans”), and non-
available to veterans who served for a minimum duration,
veterans for the seven-year period ending in June 2021. The
served during a specific period, or meet other criteria.
similar trends of the three populations illustrate the
relationship between veterans’ employment outcomes and
In many cases, veterans who qualify for programs described
the broader labor market. All three populations experienced
in this report may also be eligible for benefits that are
a decline in their unemployment rates during the initial
available to the general public on the basis of income or
period depicted in the figure. Similarly, all three groups
other characteristics. For example, low-income veterans
experienced a sharp increase in unemployment at the
who pursue higher education with GI Bill benefits may be
beginning of the COVID-19 pandemic, followed by a
eligible for Pell Grants in addition to any veteran-specific
decline.
education benefits.
Figure 1. Unemployment Rates for Post-9/11
From a budgetary perspective, the largest investments that
Veterans, Other Veterans, and Non-veterans
support veterans’ entry into the civilian labor market are
education benefits. In FY2020, the veterans’ education
programs provided more than $11 billion in payments to or
on behalf of veterans. The largest portion of this funding
was for the Post-9/11 GI Bill, though veterans also received
education benefits under other programs.
Due to the integration of some veterans’ employment
programs with other government functions, it is difficult to
estimate the total costs of non-education interventions. By
most estimates, however, federal funding for veteran
education benefits is substantially greater than aggregate
funding for non-education employment interventions.
Transition Assistance Program for Exiting
Members of the Armed Forces
Source: Bureau of Labor Statistics, Current Population Survey, data
Servicemembers who are separating or retiring from the
through June 2021.
Armed Forces are required to participate in the Transition
Notes: Data reflect moving average for 12-month period ending the
Assistance Program (TAP) under 10 U.S.C. Sections 1142
month on the horizontal axis.
and 1144. TAP includes a combination of pre-separation
counseling and five days of classroom-based instruction,
Early in the period depicted in Figure 1, Post-9/11 veterans
including an employment workshop facilitated by the
had a higher unemployment rate than non-veterans. More
Department of Labor (DOL). Depending on the veteran’s
recently, the unemployment rate of Post-9/11 veterans has
post-separation plans, TAP offers additional workshops in
converged with and, in some instances, fallen below than
preparation for higher education, vocational training, and/or
that of non-veterans. Veterans from prior periods
entrepreneurship.
consistently had an unemployment rate below both Post-
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Veterans’ Employment
Resources for Veterans Seeking Immediate
veterans’ earnings, up to a maximum. The maximum credit
Employment
is determined by the veterans’ specific characteristics and
Several programs and policies provide assistance to
employment history. For more information, see CRS Report
veterans who are seeking employment without obtaining
R43729, The Work Opportunity Tax Credit, by Benjamin
additional education or training.
Collins and Sarah A. Donovan.
Individualized career services. Veterans can receive job
Resources for Veterans Seeking Education and
search assistance and other career-related services through
Training
local American Job Centers (AJCs, also known as the One-
Veterans may pursue higher education or occupational
Stop Career Centers). AJCs are a network of state and
training to assist them in the labor market. Several
locally run facilities that administer and coordinate
educational assistance programs (GI Bills) are available to
federally funded employment and training programs. The
veterans to assist with education-related expenses.
specific services provided by each AJC are tailored to the
needs of local labor markets. There are approximately 2,400
Post-9/11 GI Bill. The most commonly used educational
AJC locations nationwide.
assistance program for veterans is the Post-9/11 GI Bill
(servicemembers are the primary recipients, though
Many AJCs have specialized veteran-serving personnel
dependents are also eligible). For qualified veterans, the
funded through the federal Jobs for Veterans State Grant
Post-9/11 GI Bill provides up to 36 months of full-time
program. These specialized personnel can provide qualified
tuition assistance and housing allowances. The Post-9/11 GI
veterans with individualized career services as well as
Bill is most frequently used to support postsecondary
referral to other federal, state, and private resources.
education, but it can also support apprenticeship, vocational
Veterans receive priority of service at all AJCs, providing
courses, or other training programs. For more information,
streamlined access to services. For more information on the
see CRS Report R42755, The Post-9/11 GI Bill: A Primer,
AJC network, see CRS Report R43301, Programs
by Cassandria Dortch.
Available to Unemployed Workers Through the American
Job Center Network, by Benjamin Collins, David H.
Other education benefits. Veterans may also be eligible for
Bradley, and Katelin P. Isaacs .
other GI Bills and programs designed to support short
training programs linked to employer needs. For more
Translation of military experience and training. The
information, see CRS Report R42785, Veterans’
federal government sponsors several skills translators and
Educational Assistance Programs and Benefits: A Primer,
occupational crosswalks to assist former members of the
by Cassandria Dortch.
Armed Forces in identifying civilian occupations and
credentials related to their military service. (For example,
Veteran Readiness and Employment Program for
see https://www.mynextmove.org/vets/.) Occupational
Veterans with Service-Connected Disabilities
licensure tends to be a state and local issue and the
The Veteran Readiness and Employment (VR&E) program
aforementioned AJC staff can advise veterans on the local
is a somewhat versatile program for veterans with a service-
transferability of military experience and training. DOL has
connected disability and qualified employment handicap.
also commissioned several studies and administered grants
Depending on a veteran’s needs and employment goals, the
to facilitate states’ recognition of military skills and
VR&E program can provide services that focus on
experience in facilitating occupational licensing processes.
immediate employment or benefits to support longer-term
education and training. Veterans who participate in long-
Federal employment. Veterans who are seeking
term training can receive a subsistence allowance while in
employment with the federal government may be eligible
training. For more information, see CRS Report RL34627,
for preference in the hiring process. In some cases,
Veterans’ Benefits: The Veteran Readiness and
qualified veterans may be eligible for direct appointment to
Employment Program, by Benjamin Collins .
certain positions without going through the competitive
hiring process. There are several forms of preference,
Resources for Veterans Starting a Business
depending on the timing and nature of a veteran’s service.
The Small Business Administration (SBA) has a variety of
Veterans with service-connected disabilities generally
programs to assist veterans with developing and managing a
receive the strongest preference. For more information, see
small business, financing a small business, and acquiring
CRS Report R44652, Federal Government Employment:
federal contracts. For more information, see CRS Report
Veterans’ Preference in Competitive Examination, by
R42695, SBA Veterans Assistance Programs: An Analysis
Benjamin Collins.
of Contemporary Issues, by Robert Jay Dilger and Sean
Lowry.
Tax credits for employers. The Work Opportunity Tax
Credit (WOTC) is available to employers that hire veterans
Benjamin Collins, Analyst in Labor Policy
with certain characteristics (such as a qualified period of
unemployment or receipt of disability compensation). The
IF10490
WOTC is calculated as a percentage of the qualified

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Veterans’ Employment

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