At a time when the Pentagon is considering plans to cut military spending and downsize the armed forces, our nation's men and women in uniform are experiencing a crisis in career confidence.
U.S. service members are increasingly worried about job opportunities for today's out-of-work veterans, and they feel uncertain about the future of their own careers in the armed forces. Recent survey findings from the First Command Financial Behaviors Index® reveal that just one in four middle-class military families (senior non-commissioned officers and commissioned officers in pay grades E-6 and above with household incomes of at least $50,000) believe there will be sufficient jobs in the civilian workforce for unemployed veterans.
These anemic confidence levels underscore the high unemployment rates we are seeing among veterans today, as well as proposed plans for defense cutbacks and downsizing tomorrow. Recent data by the Bureau of Labor Statistics shows unemployment among young veterans is more than 13%.
When active-duty service members see highly trained and tested veterans struggling to find meaningful work, they are justifiably worried about the thousands of vets who will enter the civilian workforce in the next few years.
Military families are not particularly encouraged by government solutions, either. Three out of five service members are aware of the VOW to Hire Heroes Act of 2011, a new law that provides employers with tax credits for hiring out-of-work veterans. But of those familiar with the VOW Act, nearly half are not confident that it will increase civilian job opportunities.
In addition to concerns for out-of-work veterans, many service members are worried about their own careers in the armed forces. The Index reveals that 37% of respondents are concerned about their future in the military. The top worries cited by service members or their families are:
- Effects of downsizing forces/personnel (29%)
- Effects of budget cutbacks on pay, benefits, etc. (21%)
- Changes to benefits after retirement (19%)
- Being prevented from serving in the military by being forced out or not permitted to enlist (12%)
- Job security (11%)
Given anticipated cuts to defense spending, one in four respondents say they are "not at all confident" or "not very confident" about their career in the military. When asked to consider the effect of proposed cuts to military retirement benefits, career confidence falls even lower. Roughly a third of respondents say they are "not at all confident" or "not very confident" about their military career. Roughly two out of five respondents say they expect to continue serving in the military for five years or less.
Military families recognize the changes that are coming their way, and they are justifiably worried. It is worth noting that when asked about their future in the military, just 9% of respondents cited concerns about personal safety related to deployment.
The risk of combat injury or death remains a real concern for our men and women in uniform, but it is now being overshadowed by vast financial and career uncertainties related to a shrinking defense budget. At a time when economic concerns continue to weigh heavily on many middle-class families, service members and their families are facing the added worries of how their lives will be affected by a broad reshaping of the U.S. military.
Scott Spiker is chief executive officer at First Command Financial Services Inc. He is a Navy veteran and a graduate of the U.S. Naval Academy.
First Command Financial Services and its subsidiaries, including First Command Bank and First Command Financial Planning, assist American families in their efforts to build wealth, reduce debt and pursue their lifetime financial goals and dreams -- focusing on consumer behavior as the first and most powerful determinant of results.
Compiled by Sentient Decision Science Inc., the First Command Financial Behaviors Index® assesses trends among the American public's financial behaviors, attitudes and intentions through a monthly survey of approximately 530 U.S. consumers ages 25-70 with annual household incomes of at least $50,000. Results are reported quarterly. The margin of error is +/- 4.3%, with a 95% level of confidence.
Find the Right Veteran Job
Whether you want to polish your resume, find veteran job fairs in your area or connect with employers looking to hire veterans, Military.com can help. Subscribe to Military.com to have job postings, guides and advice, and more delivered directly to your inbox.
