A recent study by the Institute for Employment Research (IAB) has shown a direct correlation between the length of time asylum seekers have resided in Germany and their employment rate. The report which was published on Thursday, is based on the IAB-BAMF-SOEP survey of refugees.

The employment rates of refugees who arrived in Germany between 2013 and 2019 have risen, with an employment rate of 60 percent seven years after their arrival, and at 68 percent eight years after arrival.

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For the cohort that arrived in 2015, the employment rate in 2022 was 64 percent. Among refugee women who arrived in 2015, 31 percent were employed, compared to 75 percent of men. In 2022, 90 percent of all employed refugees were engaged in socially insured employment.

Upward mobility

Not only did employment rates increase with the length of stay, but the quality of employment also improved. For instance, 76 percent of employed refugees who arrived in 2015 were in full-time employment in 2022.

The median gross monthly earnings for full-time employees of the 2015 cohort were 2,570 euros, and for all employed refugees, it was 2,250 euros. With a median gross hourly wage of 13.70 euros, the median earnings of the 2015 cohort in 2022 exceeded Germany's low-wage threshold of 12.50 euros.

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"Institutional and policy frameworks are crucial for labor market integration. The acceleration of asylum procedures and the gradual reduction of the periods for employment bans are associated with an increase in the employment rates of refugees," said Herbert Brücker, head of research at the IAB.

The study also shows that residency requirements impair labor market entry, and accommodation in reception facilities is negatively associated with labor market integration. For men living in communal accommodation, the probability of being employed is five percentage points lower, and for women, it is three percentage points lower than if they were living in private housing.

Restrictions for asylum seekers

The IAB report highlights persistent obstacles that refugees encounter when seeking employment in Germany, including limitations on freedom of movement and employment restrictions.

During the asylum application process in Germany, individuals awaiting approval of their refugee status are generally not allowed to work, a procedure that can take several months. Additionally, many refugees face challenges meeting specific language proficiency requirements.

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"The German government funds the national language learning program for newcomers up until the basic level of B1, which is not sufficient for more complex and better paid jobs," Franziska Hirschelmann, CEO of jobs4refugees told Euronews.

She also states that Germany struggles with recognizing the transfer of skills and qualifications. "Even in cases where transcripts did not get lost during war and displacement, the recognition procedure … is often unsuccessful as most countries do not have comparable vocational training programs and certain professions require a German degree."

Furthermore, job insecurity among refugees was exacerbated by the COVID-19 pandemic, particularly as migrants are disproportionately represented in the heavily impacted service sector.

Gender Disparities in the Labor Market

While the employment rate among male refugees shows promise after several years in Germany, the same cannot be said for women.

Among refugees who arrived in 2015, only 31 percent of women were employed in 2022, compared to 75 percent of men. Reasons for this are often related to difficulties securing childcare as well as language barriers.

"Women, in particular, benefit from the integration courses offered by the Federal Office for Migration and Refugees and from completing occupation-related language courses," said Yuliya Kosyakova, head of research at the IAB

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"Similarly, labor market and career counseling provided by job centers and employment agencies is positively associated with employment rates. An earlier start to these measures could accelerate the labor market integration of refugees," she added.

Previous research conducted by the IAB indicates that 70 percent of refugees and asylum seekers express a desire to work. The government is actively dismantling barriers to labor market entry, due to the current skill shortage and also aiming to enable asylum seekers to find employment.

However, despite these efforts, numerous asylum seekers and organizations led by refugees are still faced with bureaucratic hurdles, including extensive paperwork and complex procedures for the recognition of foreign qualifications, which delay their access to employment opportunities.