After Federal Job Cuts, Many Veterans Feel Left Behind in Civilian Work

Key Takeaways

• Federal job cuts have left many veterans reeling, with those who reported being impacted by them experiencing twice the rate of career insecurity as veterans overall.
• Translating military experience into civilian terms remains one of veterans’ biggest hurdles. Smarter hiring means going beyond “military-friendly” messaging in job postings to highlight the specific skills veterans possess.
• Flexible work options, visible veteran support networks and AI-driven job tools can help close skills translation gaps, unlocking veterans’ potential in the civilian workforce.

Nearly three-quarters of veterans who say they’ve been impacted by the federal government’s recent workforce reductions feel underemployed or underutilized in their current roles, and more than two-thirds worry about job security — roughly double the rate reported by veterans overall. A new Indeed survey of more than 1,000 U.S. veterans working in or seeking civilian employment, conducted by The Harris Poll, revealed these key findings.

The recent federal job cuts disproportionately affected veterans, who make up just 5% of U.S. workers but roughly one-quarter of the federal civilian workforce. One in 10 employed veterans works for the federal government, according to the Economic Policy Institute. In this survey, “impacted” may include veterans who lost their own jobs or those affected by job losses among colleagues, friends or family.

Overall, the survey reveals a widening divide between veterans who’ve successfully transitioned into civilian work and those still seeking meaningful opportunities. The reductions have amplified long-standing frustrations — from translating military experience to civilian roles to feeling underutilized at work — with impacted veterans reporting greater obstacles across nearly every measure.

“There’s a large pool of experienced veterans now re-entering the job market or considering career changes after these federal workforce cuts,” says Solomon Rhima, a Senior Business Strategist on the Indeed for Military team and a U.S. Marine Corps veteran. “They’ve already made the military-to-civilian transition once, but now they’re facing it again while navigating layoffs, instability and the same hiring barriers too many veterans still encounter.”

To better understand these trends, we spoke with Rhima, who helped unpack the survey's top findings and shared how employers can better attract, support and retain this critical talent pool.

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1. Job Insecurity and Underemployment Hit Some Veterans Harder

The federal reductions in force have heightened concerns about job stability and fit. Among those directly impacted, 70% worry about job security (compared to 33% of all veterans surveyed) and 73% feel underemployed or believe their current job underrepresents their military responsibilities (vs. 57% of veterans overall). Roughly two-thirds of veterans with service-related disabilities (65%), veterans of color (64%) and those with over 11 years of service (64%) report feeling underemployed or underutilized.

Rhima says many veterans often lack clear advancement paths in a civilian workforce and may feel their skills are underrepresented because civilian roles often have a narrower scope than their military experience.

“In the military, you might have one official job title, but you’re constantly cross-training and taking on new responsibilities,” he says. “When you transition to civilian work, much of that breadth disappears. You go from doing a wide range of things — safety, training, leadership — to doing just one thing. That can feel limiting for people used to learning and leading in multiple ways.”

Companies that encourage veterans to stretch their skills, contribute across teams and pursue growth opportunities are more likely to retain them long term. In a labor market where many employers are emphasizing retention and hiring conservatively, helping veterans grow internally can strengthen engagement and reduce turnover.

“For companies that can say, ‘This is your job, but if you have other interests, let’s figure out how to upskill you and allow you to help out and lean in on other projects’ — that’s huge,” Rhima says. “It allows people to apply their experience, try new jobs and spread their wings.”

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2. Translating Military Experience to Civilian Roles Remains a Major Hurdle

Nearly half (46%) of all veterans surveyed say they face unique barriers getting hired, a share that rises to 59% among Gen Z and millennial veterans and 61% among veterans of color. About one-third (34%) also say the job search has become harder since last year.

Veterans impacted by recent federal workforce reductions feel these challenges more acutely, as such changes often ripple outward, creating instability and lowering morale even among those still employed. Nearly three in four (72%) of those impacted say they face unique barriers getting hired into civilian roles, while close to half (45%) find it difficult to translate military experience into civilian job applications, compared with 29% of veterans overall. 

These findings reveal a disconnect between how veterans view their skills and how employers evaluate them. To close this gap, Rhima encourages recruiters to go beyond generic “military-friendly” messaging in job postings and instead call out the specific capabilities that would make veterans a fit.

“Tell veterans why they’d succeed in your organization,” he says. “Say something like, ‘Your leadership, strategic planning and problem-solving skills make you an excellent fit for this role.’ That simple change tells a veteran why they belong there — and it gives them confidence to apply.”

3. Workplace Connection Challenges Span Generations and Subgroups 

Feeling included in a civilian workplace culture is an issue that spans generations and often deepens at the intersections of tenure, race and disability. Nearly half of all veterans (48%) say they struggle to feel included at work — a figure that jumps to nearly three-quarters (72%) among those who say they were impacted by recent federal workforce reductions. That rate is also higher among veterans with disabilities (60%), longer-tenured veterans (62%), Gen Z and millennial veterans (61%) and veterans of color (59%).

Rhima says one of the most powerful ways employers can bridge that gap is by making their internal support networks visible — and ensuring they’re active, not just symbolic.

“There’s an opportunity for employers to really highlight their business resource groups and other internal veteran efforts,” says Rhima, who serves as a lead for Indeed’s Veterans and Allies Inclusion Resource Group. “It’s not just about showing that veterans are welcome — it’s about showing them how they’ll be recognized and appreciated once they’re part of the team.”

4. AI Tools and Training Help Veterans Translate Their Value

Technology is playing a growing role in helping veterans connect their skills to new opportunities. More than three-quarters (76%) of those who used AI tools to assist them in finding a job found employment-support services effective in conveying military skills, compared to 67% of veterans who didn’t use AI. 

Among veterans who used AI-driven job tools such as resume scanners or job-matching platforms, 86% said those tools helped them better showcase their skills. Yet only around a quarter of veterans overall have used them — though that number rises to 63% among those affected by federal cuts, many of whom may be actively looking for work or considering it.

Expanding access and awareness about AI hiring tools could be a game-changer for transitioning service members, particularly those navigating layoffs or career shifts. Rhima sees enormous potential in this area. 

“AI can really help close the knowledge gap that exists between the military and civilian workforces,” he says. “For instance, Indeed Career Scout lets veterans describe what they did in the military — what they liked, what skills they developed — and then show them career paths they might never have considered. It gives them confidence and clarity about what’s next.”

Likewise, AI hiring tools like Indeed Talent Scout that take a skills-first approach to making quality matches can help recruiters more easily connect a candidate’s military experience to their civilian hiring needs — turning overlooked resumes into real hiring opportunities.

5. Flexibility Is the New Front Line for Veteran Work Wellbeing

As with many workers, flexible work arrangements play a critical role in supporting veterans’ wellbeing and long-term career satisfaction. More than 9 out of 10 veterans with a remote or hybrid schedule say flexible work supports their health and family balance, and 8 in 10 say it improves accessibility as a veteran, related to service-connected disabilities or other needs.

While Rhima notes that this preference for flexibility extends beyond veterans, he acknowledges that it underscores a larger truth: Flexibility isn’t just a perk but a foundation for sustainable work — especially for veterans navigating the demands of transitioning to a civilian workforce.

“For veterans who may be balancing family, education or service-related challenges, the ability to work in ways that support their wellbeing can make all the difference,” says Rhima.

Reimagining Veteran Hiring in a Time of Uncertainty

As federal workforce layoffs displace and disrupt thousands of veterans, their barriers to finding stable, meaningful work have come into sharper focus. Yet this moment also offers employers a chance to rethink how they hire and support this highly skilled talent pool.

By modernizing hiring processes to recognize the full scope of military experience, creating paths for growth and fostering flexibility and belonging, you can unlock the valuable skills veterans bring — and build a stronger, future-ready workforce.

Related Links

Indeed for Military

Why Hiring Veterans Is More Than Just Patriotic – It’s Smart Business 

4 Things Employers Should Know When Hiring Military Talent

Military Veteran Hiring Case Study: Cushman & Wakefield