Labor market integration - Germany during the integration of Ukrainians in the midfield
Germany ranks in the middle of European countries in terms of integrating Ukrainian refugees into the labor market, according to a study by the Institute for Labor Market and Vocational Research (IAB) in Nuremberg. Germany had an integration rate of 27 percent at the beginning of 2024. Europe-wide, Lithuania leads with 57 percent, followed by Denmark (53 percent) and Poland (48 percent). Countries like Finland, Norway, Romania, and Spain have the lowest quotas with less than 20 percent.
"Countries with high demand for low-skilled labor report higher employment rates," says IAB sector leader Yuliya Kosyakova, who herself is from Ukraine. These jobs require fewer linguistic and other prerequisites and can be filled more quickly.
High unemployment hinders integration
In countries with rising unemployment numbers, competition for jobs is greater, making integration more difficult. Transfer payments from the public sector, such as social benefits in Germany, had little influence, according to the analysis, which only showed a small and statistically insignificant correlation.
Factors such as social networks are more important: Countries with a higher percentage of Ukrainian citizens, even before the war, show higher employment rates. "Well-established English language skills in the population also influence the quotas positively, as they facilitate integration," says IAB researcher Kseniia Gatskova.
Good childcare helps
Countries with well-developed childcare, like Denmark and the Netherlands, also report higher employment rates. Comprehensive access to healthcare services also increases the quotas.
Long-term strategy
Germany follows the principle "Language first" - a rather long-term integration approach. This may initially lower employment rates. "Experiences in Germany with refugees between 2013 and 2019 show that investments in education have a medium- and long-term effect on employment probability and the sustainability of integration," says IAB researcher Theresa Koch.
Since the beginning of the Russian invasion of Ukraine, according to statements by the German government, more than a million people have fled from the country to Germany - often women with their children. In April, according to the German government, 135,000 of them were employed in Germany. 112,000 were still in an integration course in June, which primarily focuses on learning the German language.
- Despite Germany's middle ranking in integrating Ukrainian refugees into the labor market, countries like Lithuania, Denmark, and Poland have higher integration rates.
- Yuliya Kosyakova, IAB sector leader and a Ukrainian native, notes that countries with high demand for low-skilled labor report higher employment rates.
- High unemployment in certain countries can hinder the integration process as competition for jobs becomes more intense.
- According to the analysis, transfer payments from the public sector such as social benefits in Germany had little impact on integration, showing only a small and statistically insignificant correlation.
- Countries with a higher percentage of Ukrainian citizens before the war, and those with well-established English language skills, demonstrate higher employment rates, contributing positively to integration.
- Countries like Denmark and the Netherlands, known for their well-developed childcare and comprehensive healthcare services, also report higher employment rates for Ukrainian refugees.
- Germany implements a long-term "Language first" strategy, which may initially lower employment rates, but investments in education have been shown to have a medium- and long-term effect on employment probability and the sustainability of integration.
