U.S. veteran unemployment holds low as Iraq, Afghanistan service cohort posts 3.4% rate
Labor market conditions for post-September 2001 veterans remain broadly steady, with the jobless rate for those who served in Iraq, Afghanistan, or both at 3.4% in August 2025. That figure is little changed from a year earlier and is close to the 2.3% rate recorded for Gulf War-era II veterans who served elsewhere.
Highlights
- August 2025 data show 3.4% unemployment among Gulf War-era II veterans with Iraq and/or Afghanistan service, per U.S. Bureau of Labor Statistics.
- Veterans serving only in Afghanistan report a 5.1% unemployment rate, while Iraq-only veterans post 2.1% in August 2025 data.
- The Current Population Survey August 2025 supplement covers Gulf War-era II veterans' employment status, excluding people currently on active duty.
August 2025 veteran labor data breakdown
As reported by the U.S. Bureau of Labor Statistics, 39% of Gulf War-era II veterans in August 2025 report service in Iraq, Afghanistan, or both locations. The agency defines this group as veterans who serve on active duty in the U.S. Armed Forces at any time since September 2001 and are civilians when surveyed.Within that cohort, veterans who serve only in Afghanistan post a 5.1% unemployment rate in August 2025, while those who serve only in Iraq record a 2.1% rate. The bureau says those differences are also small, indicating no meaningful gap between the two groups in the latest data.
Survey scope and broader employment context
The figures come from the August 2025 supplement to the Current Population Survey, which collects added information on veterans including service-connected disability and current or past Reserve or National Guard membership. People on active duty are excluded from the survey, and the data cover men and women who previously serve on active duty and are civilians at the time of the interview.For classification purposes, Iraq veterans include all those who serve in Iraq at any time since March 2003, whether or not they also serve in Afghanistan. Afghanistan veterans include all those who serve in Afghanistan at any time since October 2001, whether or not they also serve in Iraq.
In our earlier article on U.S. manufacturing activity in May 2025, we noted that factory output and new orders strengthened even as inflation-related cost pressures remained elevated. We also highlighted that hiring stayed soft, with the ISM employment index signaling a prolonged contraction and manufacturing payrolls down since January 2025—context that helps frame how uneven labor conditions can be across different groups.
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