Persons with refugee status and beneficiaries of subsidiary protection have unrestricted access to the labour market, including self-employment, under the same conditions as German citizens. They are entitled to all supportive measures offered by the labour agency. This includes qualification offers and training programmes, but also costs which may result from the need to have professional qualifications recognised. There are some specialised training and qualification programmes for migrants from which refugees also benefit, like vocational language courses or integration courses (see below Access to education).
Recognition of professional qualifications has been often described as a major practical obstacle for access to the labour market. This does not only affect refugees but other immigrants as well. The German government therefore has set up an information portal offering advice on the necessary procedures (“Recognition in Germany”). However, the recognition of qualifications remains challenging despite its clear positive effects on integration into the labour market as well as integration more generally.
Available official statistics on unemployment only distinguish between nationalities, but not between residence statuses of persons concerned. Therefore, it is not possible to determine how many beneficiaries of international protection have successfully integrated into the labour market.
The Covid-19 pandemic had a significant impact on the integration of (former) asylum seekers into the labour market in German, especially during the first lockdown between March and June 2020 according to a study published in May 2021. Unemployment rates rose more significantly in this group than in other groups of workers. The study explains this effect by the nature of employment of (former) asylum seekers: These persons were often employed in areas of the labour market that were most significantly hit by the pandemic and where less protection measures or home office possibilities were available. Moreover, unemployment rates rose more significantly than labour market inclusion diminished. This effect was attributed by the study to the suspension, discontinuation and interruption of integration and qualification measures. This specific setup also led to the effect that after the first lockdown in summer 2020 employment rates rose significantly faster than for other groups. In the second lockdown since November 2020 the same effect was visible but they were less significant than between March and June 2020.
Research on the labour market integration of refugees over the last decade points to a relatively successful integration in the long run: a “brief analysis” on the integration of refugees into the labour market was published in February 2020. It is based on the “IAB-BAMF-SOEP-survey”, a long-term study on the living conditions of persons who have come to Germany as asylum seekers between 2013 and 2016. The main conclusions of the study include the following:
- About 50% of the persons surveyed has found employment within five years after the arrival, which implies that integration into the labour market is taking place faster in comparison to earlier years.
- 60% of the persons surveyed were either in employment or were attending an educational institution or were taking part in qualification or integration measures in the second half of 2018. The major part of the remaining 40% were actively seeking a job or were on maternity/parental leave.
- Of persons surveyed who were in employment, 44% had jobs categorised as “unskilled labour” while 52% had jobs which required a certain qualification. 5% were in employment characterised as “specialised” or “highly specialised” occupations. Because of the comparably high number of unskilled occupations, the income of persons surveyed was considerably lower than the average income of persons who were born in Germany (between 54 and 74%, depending on the age group).
It has to be noted that this study does not distinguish between the residence status of the persons surveyed. Therefore, it is not clear how many of the persons surveyed have been granted protection status. Nevertheless, the analysis provides at least an indication for the situation of persons with protection status, since a high percentage of persons who have arrived as asylum seekers between 2013 and 2016 have been granted protection.
These findings have been confirmed by the final report on this long-term survey published in November 2020. The study points to the positive developments triggered through specific integration measures aiming at labour market integration and show that inclusion into the formal labour market is likely to take place after three to five years of stay. Moreover, the study shows a significant effect of the duration of asylum procedures on the labour market integration: If an asylum procedure is prolonged by six months (in comparison to the regular duration of such procedures) the chances of labour market integration is diminished by 11%. A positive outcome of the procedure enhances the chances by 30% with the stable residence status being the most influential factor for employment of (former) asylum seekers. The residence requirement of Section 12a of the Residence Act on the other hand has a detrimental effect on labour market integration of refugees even though its purpose was to enhance integration.
The recognition of qualifications is found to be challenging and problematic in the German context as the administrative hurdles for recognition are relatively and since the procedure is highly formalised. Moreover, the recognitions scheme works largely to the disadvantage of refugee women as their qualifications from the country of origin often do not match the formal requirements for recognitions under German Law. If recognitions take place there is a highly positive effect on the income and the formal level of the labor market involvement of migrants in general and persons granted a protection status in particular. Studies show a significant gender gap in access to the labour market, employment levels as well as remuneration that is far greater than the “usual” gender pay gap in Germany.
 Section 25(2) Residence Act.
 See BAMF, ‘German for professional purposes, 7 June 2021, available in German at https://bit.ly/3rP6W6e.
 See on these effects: Brücker, Herbert; Glitz, Albrecht; Lerche, Adrian; Romiti, Agnese (2021): Occupational recognition and immigrant labor market outcomes. In: Journal of Labor Economics, Vol. 39, No. 2, S. 1-15.
 Brücker, Herbert; Gundacker, Lidwina; Hauptmann, Andreas; Jaschke, Philipp (2021): Die Arbeitsmarktwirkungen der COVID-19-Pandemie auf Geflüchtete und andere Migrantinnen und Migranten. (IAB-Forschungsbericht, 05/2021), Nuremberg.
 Herbert Brücker, Yuliya Kosyakova and Eric Schuß – Institut für Arbeitsmarkt- und Berufsforschung, Fünf Jahre seit der Fluchtmigration 2015: Integration in Arbeitsmarkt und Bildungssystem macht weitere Fortschritte, IAB-Kurzbericht 4/2020, 4 February 2020, available in German at: https://bit.ly/3aZDosE.
 Brücker, Herbert; Fendel, Tanja; Guichard, Lucas; Gundacker, Lidwina; Jaschke, Philipp; Keita, Sekou; Kosyakova, Yuliya; Vallizadeh, Ehsan (2020): Fünf Jahre “Wir schaffen das” – Eine Bilanz aus der Perspektive des Arbeitsmarktes. (IAB-Forschungsbericht, 11/2020), Nuremberg.
 Ibid. p. 24 ff.
 Brücker, Herbert; Hauptmann, Andreas; Jaschke, Philipp (2020): Beschränkungen der Wohnortwahl für anerkannte Geflüchtete: Wohnsitzauflagen reduzieren die Chancen auf Arbeitsmarktintegration. (IAB-Kurzbericht, 03/2020), Nuremberg.
 See Kosyakova, Yuliya; Gundacker, Lidwina; Salikutluk, Zerrin; Trübswetter, Parvati (2021): Arbeitsmarktintegration in Deutschland: Geflüchtete Frauen müssen viele Hindernisse überwinden. (IAB-Kurzbericht, 08/2021), Nuremberg.
 Brücker, Herbert; Glitz, Albrecht; Lerche, Adrian; Romiti, Agnese (2021): Occupational recognition and immigrant labor market outcomes. In: Journal of Labor Economics, Vol. 39, No. 2, S. 1-15.
 See in particular: See Kosyakova, Yuliya; Gundacker, Lidwina; Salikutluk, Zerrin; Trübswetter, Parvati (2021): Arbeitsmarktintegration in Deutschland: Geflüchtete Frauen müssen viele Hindernisse überwinden. (IAB-Kurzbericht, 08/2021), Nuremberg.