An economic analysis of the impact of UK Armed Forces reservists and veterans on the labour market

What is the issue?

There are approximately 755,800 veterans and 30,000 volunteer reservists employed in the UK labour market. While some existing data suggests that veterans and reservists are economically active at similar levels to the wider civilian population, the nature and patterns of economic activity can differ. For example, veterans are over-represented in certain sectors, including manufacturing, transport and storage, public administration and defence, construction, and health and social work. Conversely, fewer veterans are self-employed compared to non-veterans, which may point to barriers such as limited access to capital or challenges in pursuing entrepreneurship.

Although veterans exhibit high levels of employment, this may obscure broader challenges in securing meaningful civilian employment. Barriers include negative employer perceptions, a lack of relevant qualifications or experience, difficulties translating military skills to civilian contexts, and challenges adapting to civilian workplace cultures. While many veterans successfully transition to civilian employment, a significant minority report accepting roles that fail to utilise their skills fully or meet their salary expectations.

Despite growing attention on veterans’ and reservists’ employment outcomes in the UK, there are significant gaps in understanding the nature and impact of veterans’ and reservists’ participation in the UK labour market. Additionally, there is a poor understanding of the positive contributions veterans and reservists bring to the workplace and to the UK economy, as opposed to the challenges and barriers they may face in civilian employment.

How are we helping?

RAND Europe has been commissioned by the Armed Forces Covenant Fund Trust – on behalf of the Office for Veterans’ Affairs – to analyse the economic impact of reservists and veterans in the UK labour market. This research aims to address six key questions:

1. What skills and qualifications do reservists and veterans bring to the labour market?
2. How has reservist and veteran employment evolved over time, particularly in response to changing economic conditions?
3. What is the economic impact of reservists in the labour market?
4. What is the economic impact of veterans in the labour market?
5. What are the barriers and facilitators to successful employment for reservists and veterans?
6. What is the scale and nature of underemployment among reservists and veterans?

The study will draw on national datasets alongside evidence from literature on Five Eyes countries (Australia, Canada, New Zealand, the United Kingdom and the United States). In addition, interviews with key stakeholders will provide qualitative insights into the skills, experiences and contributions of reservists and veterans in the labour market.

The findings will inform policymakers and stakeholders about the value of reservists and veterans in the workforce. The study will also offer recommendations for further research and practical actions to better support reservists and veterans in achieving meaningful employment.