How expanding WOTC to military spouses could reshape hiring

The Work Opportunity Tax Credit (WOTC) has long been used to expand access to employment for individuals who face structural barriers to entering the workforce. Proposed enhancements to the program would extend that approach to a new group: military spouses, allowing employers to claim a proposed tax credit of $2,400 when hiring eligible candidates.

Despite increased workforce participation, employment challenges persist. In 2024, 69% of active duty spouses were in the labor force, yet unemployment remained around 20%, with many also facing underemployment or roles that do not align with their skills. These patterns reflect a workforce that is active and engaged, but not fully supported.

To better understand how these challenges take shape in practice, we spoke with Jen Goodale, Director of Government Relations for Veteran and Retired Affairs at the Military Officers Association of America. As both a Marine Corps veteran and a military spouse, she brings firsthand insight into how employment barriers affect military families over time.

A career shaped by movement

You’ve experienced this from both sides, as a veteran and as a military spouse. How has that shaped the way you think about employment and opportunity?
I served for seven years, but I’ve been a military spouse for the last 18, and we’ve had 11 moves. When I left the service, I had a college degree and two deployments in support of Operation Iraqi Freedom. I thought finding a job would be straightforward. But we moved shortly after, and then again six months later. That pattern made it much harder to build any real continuity in my career.

What does constant relocation actually look like when trying to build a career?
Military spouses move every two to three years on average. Because of that, resumes end up looking like Swiss cheese. You have gaps, short tenures, and a lack of long-term progression, even when you’re qualified and capable.

The hiring challenge military spouses face

How do those moves show up when you’re applying for jobs?
You go into offices where employers recognize your background and experience, but once they see the military connection, the response often changes. I’ve had employers say, “We would like to hire you, but we’re looking for someone who will be here for the long-term. Won’t you be moving in a year or two?” They know there’s a cost to finding and onboarding a new employee, and they’re weighing that against how long you might stay.

Do you think military spouses are sometimes viewed as short-term hires, even when that’s not explicitly stated?
A lot of it comes down to that perceived risk. Even when someone is highly qualified, employers are thinking about onboarding costs and turnover. That calculation can work against military spouses before they even have a chance to demonstrate their value. In the post-pandemic environment, where we have a better understanding of how remote telework can benefit employees and employers, there’s a real opportunity to find a talented military spouse and then retain them when they have to PCS.

What’s often misunderstood about this group from a hiring perspective?
Military spouses bring a high level of education and experience. Because we face challenges finding consistent employment, many of us go back to school more often, earn additional credentials, and build a broad set of skills. There’s a lot of talent in this group that isn’t always fully recognized.

Where WOTC could shift the equation

With that context, what would it mean to formally include military spouses as a WOTC target group?
WOTC could be a meaningful tool to help offset onboarding costs and reduce some of the hesitation employers feel. It gives them an incentive to take a chance on someone they might otherwise pass over, even when that person is qualified.

You were personally hired under WOTC as a veteran. How did that shape your view of the program?
When I left the service, I struggled to find a role despite having a degree and experience. I was ultimately hired under the Work Opportunity Tax Credit as a veteran, and that made a difference. At the time, veteran unemployment had spiked, but over time, it came down and now trends lower than civilian unemployment. That didn’t happen by accident. It was the result of a coordinated effort that included WOTC.

Do you see a similar opportunity for military spouses if this expansion moves forward?
Military spouses and veterans are different groups, but they face some of the same structural challenges. Because WOTC was effective for veterans, we would like the opportunity to see how it could impact military spouse employment, which has remained around 20% for more than a decade.

What employers may be missing

For employers who haven’t considered military spouses as a workforce strategy, what should they understand?
There isn’t one specific industry where military spouses fit. For a long time, people assumed this population should focus on roles like teaching or nursing because those jobs exist everywhere. But the shift to remote work has changed that. Many roles can now be done from anywhere, even if employers are still adjusting to that model.

What tends to happen once employers do hire military spouses?
In many cases, employers find that they want to retain that talent. Military spouses are often highly capable and adaptable, and once they have the opportunity to contribute, their value becomes clear.

Where do you see the most immediate impact for employers, hiring, retention, or workforce flexibility?
Hiring. Employers who are incentivized to expand their search will find a group of talented, ready-to-work military spouses who have experience beyond the workforce. Moving a household every one to three years doesn’t happen without a lot of thoughtful planning and commitment.

Broader impact beyond hiring

Beyond employment, how does job stability affect military families over time?
A 2018 report, Military Spouses in the Labor Market, estimated that the “earnings penalty” of military life equated to a loss of $12,374 per year, or over $189,614 in lost income over a 20-year military career. This isn’t just about financial readiness today, it’s about long-term financial stability.

Research shows that spouse satisfaction is closely tied to whether service members stay on active duty. What’s your reaction to that, and do you see a connection between employment opportunities and military retention?
The military is a family business. For decades, senior military leaders have said, “You recruit the individual, you retain the family.” When military families sit down at the kitchen table and discuss whether they should continue service, the spouse’s opinion holds a lot of weight. A spouse who desires career progression but can’t even find initial employment is not going to recommend the servicemember stay in uniform.

Are there other changes, beyond WOTC, that could improve outcomes for military spouses?
There are existing programs within the federal workforce, including priority placement and non-competitive hiring authority for military spouses. Expanding awareness and consistent use of those programs, along with building a workforce that is not just military friendly but military ready, would make a meaningful difference. That means understanding the challenges military life presents and having policies in place that support military families. For example, offering paid time off for a PCS move or to allow a family to spend pre-deployment time together recognizes the service and sacrifice of these families.

A shift in how workforce participation is evaluated

The proposed inclusion of military spouses in WOTC reflects a broader shift in how workforce participation is being evaluated. While participation rates have increased, persistent unemployment and underemployment point to ongoing barriers that extend beyond willingness to work.

For employers, the opportunity is not only about accessing a new talent pool, but also about reassessing how hiring decisions are made when candidates do not follow traditional career paths. As discussions around WOTC continue, the proposal signals a growing recognition that experience shaped by mobility, gaps, or non-linear progression may still represent long-term value.

As Jen Goodale’s experience reflects, these challenges are not theoretical. They show up in how careers are built, paused, and reshaped over time, often independent of capability.

For military spouses, the change represents something more direct: the possibility of being evaluated based on capability rather than circumstance, and of having more consistent access to roles that align with their skills.

About Jen Goodale

Director, Veteran and Retired Affairs

As MOAA’s Director of Government Relations for Veteran and Retired Affairs, Jen Goodale manages and develops relationships to advance legislative priorities on the Hill, with the Pentagon and the VA, and with other military and veterans service organizations. A Marine Corps veteran, she also advises MOAA's Surviving Spouse Advisory Council.