So few refugees really have a job

"Scarcity of Employed Refugees in Germany: Super-Integrated Individuals Are Few and Far Between"

How grave is the issue of jobless refugees in Germany?

The Institute for Employment Research (IAB) has been monitoring the employment market for migrants in Germany for quite some time now. Unfortunately, the results aren't as promising as one would hope.

It Takes Six Years to Find a Job

The unemployment rate for individuals hailing from the eight major countries of migration – Afghanistan, Eritrea, Iraq, Iran, Nigeria, Pakistan, Somalia, and Syria – has consistently remained high. According to the latest statistics from the research institute, which is affiliated with the employment agency, the unemployment rate reached 30.3% in July.

The IAB has discovered that labor market integration takes a considerable amount of time. "The employment rates of refugees are low at the time of their arrival in Germany," as stated in a study by the institute. Nevertheless, the rates significantly improve with the length of stay. After six years, it exceeds 50%.

The Gender Divide

The study also found significant differences between immigrant women and immigrant men. After six years, 67% of men and just 23% of women are in the workforce. It takes eight years for a substantial increase in female employment rates, but even then, it only reaches 39%.

The 2015 Wave

The researchers also investigated the fate of the 890,000 immigrants who entered Germany during the migration year 2015, and who were able to work. The result: only 54% of them were employed by 2021 – a mere 54%.

Further Reading

1. Jens Spahn, a prominent German politician, has raised concerns about the low employment rate among refugees, noting that truly integrated individuals are rare exceptions.
2. The IAB conducted a study on the labor market integration of refugees, revealing that it takes approximately six years for a significant number of them to find employment.
3. According to IAB data, the unemployment rate for migrants from countries such as Afghanistan, Eritrea, Iraq, Iran, Nigeria, Pakistan, Somalia, and Syria has remained persistently high, reaching 30.3% in July.
4. Despite the challenges, the study found that employment rates improve over time. After six years, more than half of the refugees are employed; however, there is a much larger gender gap in employment rates.
5. In the case of the 890,000 immigrants who entered Germany during the migration year 2015, only 54% were employed by 2021 – an indication that labor market integration remains a significant issue even for those who were initially able to work.

Enrichment Insights:

The extent of employment rate and integration progress for refugees in Germany varies based on factors such as country of origin and specific integration policies. To elaborate:

1. General Trends:
2. Employment rates have shown improvement over time. For example, the 2015/2016 cohort of refugees displayed a gradual improvement, with 66% holding permanent contracts and 90% in employment subject to social security contributions six years after arrival.
3. Integration strategies in Germany have prioritized early access to support for asylum seekers and those with residence permits, with programs like the "Language skills first" approach showing positive results for language acquisition and employment.
4. Country-Specific Data:
5. Ukrainian refugees:
   • In Poland, roughly 62% are employed, indicating a high participation rate and rapid integration.
   • Within Germany, 30% of Ukrainian refugees are employed, though typically in lower-skilled jobs. Even in an entry-level role, this lower overall participation rate indicates room for improvement.
   • In Italy, only 19% of Ukrainian refugees have employment as of 2023, due to factors such as higher unemployment rates, challenges in recognizing foreign qualifications, and irregular employment in low-skilled sectors.
6. Challenges:
7. Gender divide: Women often face limitations in employment options, working in lower-skilled sectors like caregiving.
8. Qualification recognition: Foreign qualifications remain a significant obstacle for many skilled refugees, particularly in fields like teaching and engineering.
9. Language skills: Language barriers represent a major challenge to employability, and while Germany's "Language skills first" approach has shown positive outcomes, further improvement is always possible.
10. Support Measures:
11. Social support: Refugees in Germany receive basic income support for job seekers, which alleviates financial pressure and enables investment in language acquisition and professional skill development.
12. Integration services: Germany offers intensive integration courses focused on matching individuals with job opportunities based on their qualifications. Resources, however, can be limited, and scaling these measures remains a challenge.