Veterans' jobs programs lagging.

With unemployment rates among veterans expected to climb in the near future, state and federal agencies have improved employment services for veterans but need to do more in the areas of training and accountability, according to a Government Accountability Office report.

The 2002 Jobs for Veterans Act, intended to help veterans find jobs and to encourage employers to hire them, required states to streamline veteran employment services. It also directed the U.S. Labor Department to give priority service to veterans in the full spectrum of training programs. While the GAO report found that the Labor Department has implemented most provisions within the first two years, it noted that some are not yet fully implemented.

"Most state workforce administrators surveyed reported that the new legislation has improved both the quality of services to veterans and their employment outcomes," the GAO said in its 62page report. "However, federal actions are still outstanding for certain provisions designed to give priority to veterans in labor training programs, update federal contractor regulations and improve state accountability for veteran employment."

Some 700,000 veterans are unemployed in any given month, and the Labor Department estimates as many as 200,000 annually will flood the civilian job market as they leave the military in coming years.

"Making sure that disabled veterans have every opportunity for suitable employment is one of the DAV's highest priorities," said Assistant National Legislative Director Brian E. Lawrence. "Adequate funding and staffing for the Disabled Veterans' Outreach Program and Local Veterans' Employment Representatives are essential, as are enforcement and accountability for vet erans' preference in federal hiring and government contracting services."

The GAO report said state workforce administrators credited the greater availability of case management services under the 2002 law for much of the improvement in veterans' employment. Those administrators cited lack of federal contract compliance with the law's provisions as most likely to have limited veterans' employment opportunities. Aside from the law's influence, they cited the willingness of employers to hire veterans and the strength of the local job market as significant factors affecting veterans' employment.

The Bureau of Labor Statistics reported that during the first nine months of 2005 almost 15 percent of veterans in the 20 to 24 year-old age group were unemployed. That is nearly three times the national rate.

In August 2003, the unemployment rate for veterans aged 18 to 24 was less than 8 percent, while the unemployment rate for non-veterans in the same age group was more than 11 percent. The overall unemployment rate for veterans over age 18 was 4.5 percent, compared with 5.9 percent for non-veterans.

Unemployment rates for disabled veterans have been on the rise over the past three decades. According to the BLS, the unemployment rate for disabled veterans discharged from the military prior to 1976 was 6.3 percent. But unemployment dropped to 2.7 percent for disabled veterans discharged between 1976 and 1990. However, the unemployment rate for disabled veterans discharged between 1991 and 2000 nearly doubled to 4.4 percent. And for disabled veterans who left the military between 2001 and 2004, the unemployment rate was 8.3 percent.

An outgrowth of the Jobs for Veterans Act was a national "Hire Vets First" campaign developed by the Labor Department to heighten employer awareness about the employability of veterans and to refer employers interested in hiring veterans to local One-Stop Career Centers.

Programs such as the Labor Department's Veterans' Employment and Training Service and the VA's Vocational Rehabilitation and Employment Program provide comprehensive services and assistance necessary to enable veterans with service-connected disabilities and employment handicaps to become employable and obtain and maintain stable, suitable employment.

"And while state and federal governments have made significant improvements in job training and employment services for veterans, it is clear much more needs to be done to fully implement the Jobs for Veterans Act," Lawrence said. "However, there needs to be a stronger commitment on the part of the federal government to veterans' employment and training programs, particularly those aimed at disabled veterans. And the DAV will continue working with Congress, the VA and the Department of Labor to ensure that disabled veterans' employment opportunities and rights receive the highest priority."

Unemployment rates for disabled
veterans by year of discharge:

Prior to 1976   6.3%
1976 to 1990    2.7%
1991 to 2000    4.4%
2001 to 2003    8.3%

Source: Department of Labor's Bureau of
Labor Statistics Survey conducted every
two years by the Census Bureau

Note: Table made from bar graph.