Germany integrates Ukrainians moderately into labor market

Germany integrates Ukrainians moderately into labor market
Over one million Ukrainians are fleeing to Germany. Who can, should work – this is what politics demands. Some ignite a debate about social benefits. But it’s not fair, as shown.
According to a comparative study of labor markets in EU countries, social transfer payments have little influence on the employment rate of Ukrainian refugees. Instead, 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.
The IAB researchers examined the employment rates of Ukrainian refugees in various 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 varied, but the consideration of the social transfer benefits often mentioned in the German debate only shows “a small and statistically insignificant correlation.” Countries like Finland, Norway, Romania, and Spain report employment rates below 20 percent.
Networks, Health, Social
However, the importance of how well refugees are socially integrated is significant: “Countries with a higher proportion of Ukrainian citizens in the population – even before the war – show higher employment rates,” explained the researchers. “Strong English language skills in the population also positively influence employment rates, likely because they facilitate communication and thus integration into the labor market,” explained IAB researcher Kseniia Gatskova.
“Countries with high demand for low-skilled labor report higher employment rates,” says IAB department head Yuliya Kosyakova, who herself is from Ukraine. These jobs require fewer linguistic and other prerequisites and can be filled more quickly.
Since the beginning of the Russian invasion in Ukraine, according to the German government, more than one million people have fled from the country to Germany – often women with children. In April, according to the German government, 135,000 of them were economically active in Germany. 112,000 were still in an integration course in June, which primarily focuses on learning the German language.
The debate about social benefits for Ukrainian refugees in Germany overlooks the significant impact of social integration on their employment rates, as evidenced by IAB’s research. Countries with a higher percentage of Ukrainian citizens before the war and stronger English language skills have shown higher employment rates among refugees. Moreover, sectors with high demand for low-skilled labor often report higher employment rates, making these jobs beneficial for refugee integration in the German economy.

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