More refugees at work through tight labor market and flexible rules

More refugees at work through tight labor market and flexible rules

More and more people who have fled to the Netherlands are quickly finding jobs. Researchers at ABN AMRO expect the number of working refugees to increase by approximately 17,500 in 2025, a growth of 20 percent compared to last year.

ABN AMRO estimates that the number of working refugees will grow from 88,000 last year to 105,000 this year. According to the bank, this is mainly due to the persistent labor shortage and the easing of laws and regulations. Many employers are also more willing to hire refugees.

Ukrainian refugees currently benefit from free access to work through European regulations. As a result, 60 percent of them were already working at the end of last year. “The experiences with Ukrainian refugees show what is possible if obstacles are removed,” says Mario Bersem, sector economist at ABN AMRO.

The number of working asylum seekers also increased sharply last year. This is mainly due to the scrapping of the so-called 24-week requirement. Until November 2023, asylum seekers were not allowed to work more than 24 weeks per year. The Council of State declared that rule invalid because it was in violation of European legislation.

Since then, the number of working asylum seekers has increased significantly. Approximately six thousand were added in 2024. The researchers expect this number to increase in 2025 as well.

Opportunities for companies with staff shortages

Labor participation is also strongly increasing among status holders – refugees with a temporary residence permit. Thanks to the Integration Act 2021, which focuses on faster participation in society through work, their labor participation increases every year.

ABN AMRO expects that approximately 5,500 status holders will start working this year. That would be an increase of 22 percent compared to last year.

However, the full labor potential of asylum seekers and status holders is not yet being utilized, emphasizes sector economist Bersem. And that is a shame, because, according to him, there are plenty of opportunities in sectors with large staff shortages. This includes, for example, healthcare, logistics and hospitality.

“Employers who invest in guiding newcomers can tap into a breeding ground of talent. This not only offers solutions for staff shortages, but is also good for the integration of newcomers,” says Bersem.

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