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Little influence on the employment rate of Ukrainians through social transfer payments

IAB Study

In the integration of Ukrainian refugees, Germany is only in the middle in Europe.
In the integration of Ukrainian refugees, Germany is only in the middle in Europe.

Little influence on the employment rate of Ukrainians through social transfer payments

Social transfer services have little influence on the employment rate of Ukrainian refugees in the EU countries according to a comparative study of labor markets in EU states. However, factors such as social networks of Ukrainian women and men in the respective countries, the general level of English language skills of the local population, and childcare infrastructure are significant, as shown in the study published by the Institute for Employment Research (IAB) on Wednesday.

The IAB researchers examined the employment rates of Ukrainian refugees in different EU countries. The highest rates are reportedly in Lithuania (57 percent), Denmark (53 percent), and Poland (48 percent). In Germany, the rate is 27 percent, which is in the European middle. The reasons for this are diverse, but the consideration of the frequently cited high level of social benefits in the German debate yields only "a small and statistically insignificant correlation".

However, it is important how well refugees are socially integrated: "Countries with a higher proportion of Ukrainian citizens in the population - even before the war - show higher employment rates," explained the researchers. "Pronounced English language skills in the population also influence employment rates positively, probably because they facilitate communication and thus integration into the labor market," explained IAB researcher Kseniia Gatskova.

The study conducted by IAB revealed that social transfer services have scarcely influenced the labor productivity of Ukrainian refugees in various EU countries. The Ukrainians in Lithuania, Denmark, and Poland, who possess higher English language skills, have reportedly higher employment rates. The influence of TransferServices seems to be outweighed by factors like English language skills and existing social networks.

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