One-in-ten veterans leaving the military in the next five years will face long-term unemployment, a study claims.
Research for the Veterans Employment Transition Support programme warns even more will have skills that employers are not using.
According to the study, 85,000 people are expected to leave the military in the next five years with 1-in-10 facing long-term unemployment.
Another 12% will be under-employed -- in work but not using their skills.
It is despite employers warning more than half-a-million jobs could go unfilled because they cannot find the skilled workers they need.
Those workers include veterans skilled in conflict resolution or diffusing tough situations.
The report says the mis-match could cost the economy £1.5bn.
Stuart Tootal, Head of the Barclays Armed Forces Transition said: “This research reinforces how veterans can add real value to the commercial sector.
"Our ex-military men and women have a wealth of experience and valuable skill sets, and it is time that more employers took advantage of this.
“The VETS programme provides a one-stop-shop for employers wishing to access this considerable pool of ex-military talent, as well as assisting veterans with a range of support to help them find the right job. "In short, VETS is good for veterans, employers and the economy.”
Victor Olet, veteran said: “The assistance that I got from VETS really helped me manage the transition from military life.
"When I first started applying for jobs I had a low response rate from the businesses I was contacting, but the advice I was given about improving my CV really changed that.
"The VETS programme also really helped build my confidence ahead of job interviews.”