Invisible sacrifices: The billion-dollar social cost of military spouse unemployment

Given the sacrifices the military lifestyle demands, it’s no surprise the unemployment rate for military spouses has remained five times the national average.

Frequent moves, deployments, the demands of military life, and the lack of available and affordable childcare make it difficult for military spouses to establish and maintain careers. Given the sacrifices the military lifestyle demands, it’s no surprise the unemployment rate for military spouses has remained five times the national average for more than a decade. Military spouses face a 21% unemployment rate that has gone statistically unchanged in the last decade.

The impacts of this issue are far-reaching. Family and societal issues like depression and high military attrition rates can often be traced back to military spouse unemployment. Military families, frequently limited to one income due to the nature of service life, may struggle to balance their current needs with future financial security. This challenge extends far beyond individual households, creating ripple effects throughout society. The estimated annual social cost of military spouse unemployment is between $710 million and $1.07 billion. This includes things like increased dependence on social services, mental health issues, workforce underutilization and health issues. By addressing military spouse unemployment and supporting these families’ financial stability, we will not only improve their quality of life but also mitigate significant societal and economic costs to the country.

While military spouse unemployment is a complex and multifaceted issue, public and private organizations can collaborate to make meaningful careers more attainable for military spouses.

Lesser-known benefits of hiring military spouses

Military spouses offer a wealth of knowledge and experience as employees, and the benefits of hiring military spouses are wide-ranging.

Military spouses are more educated than the average American. About 37% of military spouses have earned a bachelor’s degree and 38% have a postgraduate degree. This compares to about 24% and 14% of Americans respectively.

Military spouses also have diverse experiences. Relocating every few years arms them with adaptability and problem-solving skills others may not have.

Due to frequent relocations, living in more diverse communities, overseas assignments and more, military spouses also often have high levels of cultural sensitivity and awareness, which can be an asset in the workplace.

What’s being done to address military spouse unemployment

Awareness is increasing about this issue, as are the attempts to do something about it. For instance, the Military Spouse Career Support Act of 2023 was signed into law earlier this year. This law expands the reimbursement of licensure and business costs to spouses of servicemembers who are transitioning to the reserves. In 2023, the Military Spouse Licensing Relief Act made it easier for military spouses to transfer their professional licenses when moving due to military orders. Additionally, some workplaces that hire military spouses may be eligible for various government incentives and tax credits. For example, the Work Opportunity Tax Credit (WOTC) provides tax credits to employers who hire individuals from specific target groups, including qualified veterans and their spouses.

In addition to legislation, programs like the Department of Defense Military Spouse Employment Partnership (MSEP) and the Military Spouse Career Accelerator Pilot are making a real impact. MSEP connects military spouses with hundreds of partner employers, including First Command, that are committed to recruit, hire, promote and retain military spouses. MSEP currently has more than 700 partner organizations who have hired more than 275,000 military spouses. The Military Spouse Career Accelerator Pilot provides spouses with paid 12-week fellowships at employers across various industries and locations.

Lastly, some organizations choose to adopt policies that make it easier for military spouses to maintain their careers. First Command, for instance, partners with Hiring Our Heroes and dedicates advisor recruiting efforts to attract military spouses and veterans, and preserve their careers through PCS. As a result, 91% of First Command advisors are veterans or military spouses. Additionally, many other companies support efforts for employees who relocate with their service members during PCS to keep their positions, recognizing the great value military spouses bring to the workplace.

How organizations can help address military spouse unemployment

One important thing businesses can do to help tackle military spouse unemployment is to adopt the 4+1 commitment. This first-of-its-kind nationwide effort asks employers in all sectors to adopt at least one of four military spouse-friendly employment policies, plus consider joining an existing government spouse employment program. The four policies are:

  • Facilitate job transferability
  • Offer remote or telework
  • Offer flexible work hours
  • Provide paid or permissive Permanent Change of Station (PCS) leave

In addition to being one of the original 10 signatories to the 4+1 commitment, First Command has adopted all four initiatives, has joined existing government spouse employment programs and offers other programs to support military spouses.

Business leaders have a unique opportunity to support military spouses, an often overlooked but incredibly valuable talent pool. As of May 2024, there are an estimated 12.2 million military spouses in the United States, representing a wealth of skilled and resilient professionals. Business leaders should consider ways to enhance company policies to better serve these unsung heroes. Creating more opportunities for military spouses will make a positive impact on families, strengthen the country, and indirectly support its armed forces. Innovative ways to break down barriers and demonstrate how the business community can play a role in empowering military spouses will help support those who serve our nation.

Mark Steffe is president and CEO of First Command Financial Services, Inc.

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