A comprehensive study conducted by the Institute for Employment Research (IAB) sheds light on the evolving dynamics of refugee integration into the German labour market. Published recently, the study offers insights into the employment trajectories of asylum seekers residing in Germany over an extended period.
Drawing data from the IAB-BAMF-SOEP survey of refugees, the report indicates a notable correlation between the length of asylum seekers’ residency in Germany and their employment outcomes. Notably, refugees who arrived in Germany between 2013 and 2019 exhibited a significant upward trend in employment rates over time.
Specifically, the study reveals that seven years post-arrival, the employment rate among this cohort stands at 60 percent, marking a steady increase from previous years. Moreover, after eight years of residency in Germany, the employment rate further rises to 68 percent, indicating a positive trajectory in labour market integration among long-term asylum seekers.
Delving deeper into the data, researchers found that for refugees who arrived in 2015, the employment rate in 2022 reached 64 percent, reflecting a substantial improvement compared to earlier stages of integration. However, persistent gender disparities persist, with only 31 percent of refugee women employed compared to 75 percent of men from the same cohort.
Moreover, the study highlights not only an increase in employment rates but also an enhancement in the quality of employment among refugees. Seventy-six percent of employed refugees from the 2015 cohort secured full-time positions by 2022, indicating a shift towards stable and sustainable employment opportunities.
Financially, the median gross monthly earnings for full-time employees within this cohort amounted to 2,570 euros, surpassing Germany’s low-wage threshold. This signifies an improvement in earning potential and economic stability among refugee populations over time.
Herbert Brücker, head of research at the IAB, underscores the pivotal role of institutional and policy frameworks in facilitating labor market integration among refugees. Accelerated asylum procedures and reduced employment bans have played a significant role in enabling refugees to access employment opportunities more swiftly.
Despite these positive trends, the study identifies persistent barriers hindering refugee employment in Germany. Residency requirements and accommodation in reception facilities emerge as significant challenges impeding labour market entry for asylum seekers. Additionally, restrictions on employment during the asylum application process exacerbate job insecurity among refugees awaiting status approval.
Gender disparities further complicate the labor market landscape, with women refugees facing unique challenges such as difficulties in securing childcare and language barriers. To address these disparities, Yuliya Kosyakova, head of research at the IAB, emphasizes the importance of integration courses and tailored career counseling services, particularly for women refugees.
In conclusion, the study underscores the evolving nature of refugee integration in Germany and the ongoing efforts to dismantle barriers to labour market entry. By addressing systemic challenges and promoting inclusive policies, Germany can harness the full potential of refugee populations to drive economic growth and foster social cohesion.