On the labor market integration of refugees from Ukraine: A simulation study

Abstract

"Since the onset of Russia's war against Ukraine, the number of Ukrainian nationals in Germany has risen from 156,000 to 1,240,000. Although many plan to return to Ukraine after the war, the duration of the conflict is leading an increasing number of them to consider staying in Germany for an extended period or permanently. Against this backdrop, this research report simulates various scenarios of labor market integration for Ukrainian refugees, based on the employment trajectories of previous refugees and migrants from the former Soviet Union. The scenarios aim to establish realistic expectations about the progress of labor market integration for Ukrainian refugees and to quantitatively assess the impact of specific factors. However, these conditional scenarios should not be misunderstood as forecasts, as they are based on strong assumptions and do not fully control for many relevant factors. In the baseline scenario, which is based on what we believe are the most realistic assumptions regarding demographic factors, family configurations, education, language skills, and institutional and economic conditions, the average employment rate for Ukrainian refugees is projected to be 45 percent after five years and 55 percent after ten years. Gender composition and family configuration have a dampening effect on employment rates, while education level and expected language skills development have a positive impact. The comparatively poor health of Ukrainian refugees also dampens employment rates. Conversely, institutional conditions, particularly the absence of asylum procedures, have a positive impact. Economic conditions, measured by labor market tightness, also have a strong influence. The current economic downturn has a negative effect, but the picture could quickly improve with an economic recovery due to increasing labor market tension amid demographic changes, which would likely increase employment rates compared to the baseline scenario. A key finding for integration policy is that language courses not only enhance language development but also significantly boost employment rates." (Author's abstract, IAB-Doku) ((en))

Cite article

Kosyakova, Y. & Brücker, H. (2024): On the labor market integration of refugees from Ukraine: A simulation study. (IAB-Forschungsbericht 09/2024 (en)), Nürnberg, 42 p. DOI:10.48720/IAB.FB.2409EN