EBS, INGKA, UNHCR: Refugee talent can boost Europe’s growth and address demographic pressures

Building on insights generated through the European Demographics Summit and including policy and operational expertise regarding the labour market integration of refugees and other forcibly displaced populations, European Business Summits (EBS), Ingka Group | IKEA and UNHCR, the UN Refugee Agency, have published a position paper setting out a framework for better integrating refugees in today’s labour market. The paper positions socio-economic inclusion of refugees as key to strengthening Europe’s competitiveness and economic future, addressing demographic challenges, and unlocking underutilised talent. It also underscores the essential role of a well-supported private sector—particularly large companies—in further hiring displaced talent.

The paper highlights several key points:

Without decisive action, Europe’s demographic shift will undermine economic growth, competitiveness, and public finances. Declining birth rates, an ageing population, and a shrinking workforce — combined with nearly one million workers leaving the labour market each year — are already driving labour shortages across key sectors, including healthcare, logistics, and hospitality.

Refugees are an underutilised economic asset. Europe is hosting millions of refugees with the right to work – many of whom bring valuable skills, experience, multilingualism, and adaptability - yet their potential remains largely untapped due to systemic barriers. Current outcomes show underemployment, lower wages, and job insecurity, not a lack of capability.

Structural barriers — not a lack of talent and will — are slowing refugee integration into the labour market – these include delays in work authorization, administrative processes and recognition of qualifications, limited access to language training aligned with jobs, weak job matching and labour market information systems, and a lack of employer guidance—making refugee hiring appear more complex than it is, despite its significant potential benefits.

Refugee talent can be unlocked by prioritizing three areas: 1. better use of existing skills that refugees bring into their new communities; 2. strengthening business leadership and partnerships to make inclusive hiring more practical, scalable, and sustainable; 3. building stronger local integration systems by linking employment with housing, health, education, and social services, building municipal capacity, improving data for policy making, and involving refugees in designing solutions.

Integration of refugees in the labour market is both an economic and social imperative that will contribute to social cohesion and Europe’s long-term resilience. Closing employment and productivity gaps could meaningfully boost GDP growth. Addressing refugee un- and underemployment in Germany and other European countries could raise annual GDP growth by up to 0.7%.

Unlocking refugee talent at scale requires coordinated action across governments, businesses, and communities, going beyond access to work to ensure inclusive workplaces, strong employer support, and pathways for long-term career progression. By doing so, Europe can transform a demographic crisis into an economic opportunity and drive growth, innovation, and resilience.