Young Veterans Unemployed because it takes time to Find a Civilian Job

Why Is Veteran Unemployment So High? | RAND

Abstract

According to official statistics, the unemployment rate of young military veterans ages 18-24 reached 29 percent in 2011. This report seeks to put that statistic in perspective by examining the historical time-series of veteran unemployment, comparing the veteran unemployment rate to that of non-veterans, and examining how veteran unemployment varies with time since military separation. Between 2000 and 2011, younger veterans were, on average, 3.4 percentage points more likely to be unemployed than similarly situated younger non-veterans. However, this difference between veteran and non-veteran unemployment falls rapidly with age and time since military separation. The report concludes that the best available evidence supports the hypothesis that relatively high rates of veteran unemployment reflect the fact that veterans, especially younger veterans, are more likely to have recently separated from a job — namely, military service — and, consequently, are more likely to be engaged in job search, which takes time, especially during periods of slow economic growth. The available evidence lends little support to the hypothesis that veterans are inherently disadvantaged in the civilian labor market. Limiting unemployment benefits available to recently separated veterans would likely reduce the length of unemployment spells, but the net effect of such a policy action on the long-term federal budget is unclear. There is very limited evidence on the effectiveness of other federal policies aimed at facilitating the transition of veterans into the civilian labor market.

Young veteran unemployment peaked in 2011 at 28%, double that for non veterans

 Key Findings

The five hypotheses evaluated are:

1. Poor health. Military service causes poor physical and mental health and poor health causes unemployment.
2.  Selection. Individuals who choose to apply for military service have characteristics that make it more likely they will be unemployed in the future than do individuals who do not choose to apply for military service.
3.  Employer discrimination. Civilian employers discriminate against veterans.
4.   Skills mismatch. The military develops skills that do not transfer well to civilian occupations.
5.  Job search. Veterans, especially younger veterans, are more likely to have recently separated from a job—namely, military service—and finding a new job takes time.

The available evidence presented in the study is most consistent with the hypothesis that veterans are more likely to be unemployed than non-veterans because they are more likely to have recently separated from a job—namely, military service—and, therefore, are more likely to be in the process of finding a new job. …It might be that relatively high veteran unemployment is an unavoidable cost of maintaining a volunteer military that relies so heavily on the services of the young. The public might take comfort, however, in the fact that the available evidence indicates that elevated levels of veteran unemployment are short-lived and that, on average, veterans in the longer run perform quite well in the civilian labor market relative to their peers.

e.g.; ▶ Pre Separation Counseling - YouTube