Why Do Migrants Still Struggle to Integrate into Europe’s Workforce?

In 2015, a record 1.3 million people sought asylum in European Union (EU) states — the largest annual flow into the continent in 30 years. Although the number of persons annually seeking refuge in Europe has fallen since 2015, the EU now faces a significant public policy challenge: the integration of these migrants into European societies, communities and labor forces. Labor force integration remains at the forefront of policy discussions as host countries aim to relieve the economic burden of increasing populations and promote self-sustaining lives for migrants.

In a recent study, Giang Ho and Rima Turk-Ariss of the International Monetary Fund studied labor force integration of migrants in Europe with a focus on employment outcomes to help inform integration policy decisions. The authors used data from the European Union Labor Force Survey (EU LFS) covering 28 EU-member countries plus Iceland, Norway and Switzerland between 1998 to 2016. They examined whether migrants’ integration speed differed by gender and across migrant groups. In addition, Ho and Turk-Ariss sought to determine whether a migrant’s social or professional network influenced labor market outcomes. Finally, they analyzed the role of foreign versus domestic education on migrants’ ability to obtain full-time employment and the impact of macroeconomic conditions in the host country.

Ho and Turk-Ariss concluded that migrants tend to catch up to natives over time with regards to their status in the labor market. However, this process is lengthy, and the convergence is only seen for certain groups. They also found that female migrants are significantly disadvantaged in the initial phases of integration, and integration is significantly slower for migrant populations from the Middle East and North Africa. Therefore, the authors suggest that effective integration policies should focus primarily upon these two demographics. Furthermore, since stable macroeconomic environments impact integration positively, policies should aim to provide support in times of unfavorable macroeconomic conditions in host countries. Finally, they conclude that policies should target education efforts to remove non-skill barriers to labor force participation, such as language training.

Since the height of the European refugee crisis in 2015, the struggle to integrate millions of migrants across the continent has persisted. Ho and Turk-Ariss’ findings shed light on some of the nuances that impact migrant integration and, more specifically, what barriers dampen effective participation in the labor force. The conclusions of this study can help inform future policy decisions by encouraging host countries to address the highlighted barriers to integration. However, it is important to keep in mind that the design of integration policy is also shaped by the specific circumstances of each country — political constraints, stakeholders’ interests and intricate linkages to many other policy areas including education, housing, labor market and financial inclusion.

Article source: Ho, Giang, and Rima Turk-Ariss. “The Labor Market Integration of Migrants in Europe: New Evidence from Micro Data.” IMF Working Papers 18, no. 232 (2018): 1.