Written by: Kayla Reed-Fitzke, PhD, LMFT & Nichole Huff, PhD, CFLE
Military spouses face challenges in gaining and maintaining meaningful employment (Navigating Employment: The Unique Challenges Faced by Military Spouses – OneOp). The unemployment rate among military spouses is high at 21% (Defense Personnel Analytics Center, 2021). Moreover, underemployment also remains a pressing issue, with many spouses working in jobs that do not fully utilize their qualifications or experience, affecting their earning potential and career satisfaction. In 2021, only 62 percent of employed military spouses were employed within their area of education or training (Defense Personnel Analytics Center, 2021). Having employment that aligns with the military spouses’ career intentions supports military family financial readiness.
A military family’s economic security is critical to mission readiness. As such, spouse employment can greatly contribute to financial readiness, or “the state in which successful management of personal financial responsibility supports a Service member’s ability to perform their wartime responsibilities” (DoDI 1322.34). Economically, spouse employment offers financial benefits for military families that promotes resilience and allows for increased financial well-being, which includes the ability to fully meet current and ongoing financial obligations, to feel secure in the family’s financial future, and to be able to make choices that allow for the enjoyment of life.
Impact on Financial Stability
The employment challenges faced by military spouses have a direct impact on the financial stability of military families. Military families often rely on a single income (Defense Personnel Analytics Center, 2021), which can put them at a financial disadvantage compared to civilian families with dual incomes. Among service members who report a worsening financial situation, one of the oft cited reasons for such problems was the spouse’s employment situation (Office of the Under Secretary of Defense for Personnel and Readiness, 2023).
Impact on Earnings
A primary barrier to continuous employment for military spouses is relocation (Defense Personnel Analytics Center, 2021). Military-related moves increase the likelihood of spousal unemployment for the year of move and are related to an average 14% decline in annual earnings up to 2 years later; such declines are even higher for families with young children and for military spouses who are older and/or male (Burke & Miller, 2017).
It is important to take a comprehensive view when thinking about the economic value of spouse employment. For military families who have children, if the military spouse is employed, the family may need external childcare, which could place additional demands on the family’s disposable income. The spouse’s decision and ability to work has an impact on the larger family unit – while it can help to bring in additional income, it may also result in associated financial costs. Considering the added value of spousal contributions in and out of the home will be different for each family based on the unique needs of their family unit.
Supporting Military Spouses’ Employment and Financial Needs
Military providers working with military spouses in support of their employment needs should be mindful of the ramifications of spouse employment for financial readiness. In turn, providers working in support of financial readiness should be aware of how the spouse’s employment history contributes to their economic well-being. Both should be well-equipped with resources to support military spouses, such as:
The Department of Defense (DoD) offers a financial education website dedicated to increasing the financial capability of military spouses: MilSpouse Money Mission. This resource engages and empowers military spouses by providing relatable financial educational content to help spouses strengthen their knowledge and skills. DoD recognizes that military spouses often manage household finances, and as such, it offers free financial education and resources to help them make smarter money moves (e.g., goal setting, budgeting, debt management, investing, estate planning) and better navigate military milestones and transitions (e.g., children, PCS, deployment). They also offer a repository of military-provided Spouse Employment Resources and installation-base employment assistance programs. Additionally, here military spouses can learn more about entrepreneurship, financial planning, insurance, taxes, etc.
References
Burke, J. and Miller, A.R. (December, 2017). The Effects of Job Relocation on Spousal Careers: Evidence from Military Change of Station Moves. Economic Inquiry, 56: 1261-1277. https://doi.org/10.1111/ecin.12529
Defense Personnel Analytics Center. (2021). Active duty spouse survey. Office of People Analytics. (Report No. 2023-045). Retrieved from https://dpac.defense.gov/Portals/131/Documents/ActiveDutySpouseOverviewBriefing-Final-508.pdf
Office of the Under Secretary of Defense for Personnel and Readiness. (December, 2023). Annual report on the financial literacy and preparedness of members of the Armed Forces: Results from the 2022 Status of Forces Survey. Retrieved from https://finred.usalearning.gov/assets/downloads/FINRED-2023-FinancialLiteracy-R.pdf.pdf
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