Figure of the Month: 64
In just the first weekend of September 2015, 15,000 asylum seekers crossed into Austria. While some remained, the majority continued their journey to neighboring Germany. This was the moment Chancellor Merkel famously declared, "We can do this!"
Ten years later, it's time to take stock. A finding that might surprise many: 64% of those who arrived in Germany in 2015 as asylum seekers are now employed. This is only 6 percentage points lower than the employment rate of the general population.
This rapid convergence of employment rates was far from guaranteed, especially considering the extremely difficult circumstances many faced—the trauma of their escape, a lack of language skills, qualifications that weren't easily transferable, and uncertain prospects of being allowed to stay. German policy actively contributed to this success by quickly easing refugees’ access to the labor market, alongside intensive and effective integration measures.
A comprehensive evaluation of these measures shows that wage subsidies for employers and active support for on-the-job training and further education were particularly beneficial. This wasn't just true for the individuals who received support, but also for the state. Over the long term, the increase in tax and contribution revenue, plus savings in social welfare spending, more than offset the costs of these measures. By contrast, creating non-profit jobs for refugees outside the regular labor market proved to be an ineffective approach.
However, these active labor market policies could have been even more successful as a tool for integration if there had been more language training focused on professional skills, fewer capacity bottlenecks in support structures, less discrimination against refugee women in accessing effective measures, and if the capacity of the local labor market had been given more consideration when distributing refugees across communities.
When applying these experiences, caution is essential. Still, a few key principles can guide how we support asylum seekers arriving today—including in Austria. Do not leave those with a high likelihood of staying to fend for themselves; actively challenge and support them from the very beginning! Invest in social integration—qualified employment is more important than rapid placement! And finally, actively involve and support businesses as a driving force for integration
Holger Bonin
Scientific Director
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