More than half of the world's refugees live in countries where they have restricted access to formal employment. At the same time, businesses across the world need workers, but even when refugees are allowed to work, businesses can be unfamiliar with the benefits of hiring refugees.
There are both economic and humanitarian reasons for companies to employ refugees—and employment is critically important for moving them off humanitarian assistance and on to both self-sufficiency and better lives. Refugees can help their host countries overcome labor challenges and contribute to local economies but this requires collaboration between policymakers, the private sector, and other stakeholders to establish a legal, economic, and social environment that is conducive to the economic integration of refugees in their host countries.
This paper looks at the reasons why companies hire refugees and offers a framework for how to boost refugee employment in the private sector. Among the key topics covered are:
- The business case for companies to hire refugees is emerging. In addition to social responsibility motivations, refugees can fill labor shortages, help companies expand their market reach, and increase revenues by bringing new skills, networks, and working methods.
- Countries that allow refugees to pursue employment in any industry are likely to see long-term economic benefits. Benefits include increased tax revenues and the injection of new skills into the labor market. Drawbacks of not allowing refugee employment include the fueling of informal economies.
- There is no “one size fits all” approach to refugee employment. Creating a legal framework that supports refugee employment while protecting local workers can be challenging, and it can vary from country to country. In addition, there is often a mismatch between the skills that refugees bring to their host countries and what is needed in the local job market. This implies the need for training, targeted to the needs of the local job market, and comprehensive language programs that allow refugees to become competitive job applicants.
- Labor market intermediaries that operate between businesses and refugees can facilitate job matching and optimize work processes. Intermediaries can link relevant parties to promote sustainable labor market outcomes, by identifying relevant job needs among employers and refugee job applicants. Together, such stakeholders can improve economic outcomes for refugees, as well as their host countries.
In addition to presenting a business case for refugee employment in the private sector, the report presents a framework for businesses, policymakers, and intermediaries for boosting refugee employment.