Peer Review on Integration of Refugees into the Labour Market

Transcription

1 Peer Review on Integration of Refugees into the Labour Market Berlin, Germany, October 2017 Strategies and targeted measures to support integration of refugees into the German labour market Host Country Discussion Paper Germany DG Employment, Social Affairs and Inclusion Written by Regina Konle-Seidl September, 2017

2 EUROPEAN COMMISSION Directorate-General for Employment, Social Affairs and Inclusion Unit C3 Contact: Maria Ilies Web site: European Commission B-1049 Brussels

3 EUROPEAN COMMISSION Peer Review on Integration of Refugees into the Labour Market DG Employment, Social Affairs and Inclusion Directorate-General for Employment, Social Affairs and Inclusion Peer Review on Integration of Refugees into the Labour Market Germany, October 2017 September, 2017

4 Europe Direct is a service to help you find answers to your questions about the European Union. Freephone number (*): (*) The information given is free, as are most calls (though some operators, phone boxes or hotels may charge you). LEGAL NOTICE The information contained in this publication does not necessarily reflect the official position of the European Commission European Union, 2017 Reproduction is authorised provided the source is acknowledged.

5 Table of Contents Executive Summary Situation in the host country Inflow of asylum seekers over the period Demographic characteristics The German VET system The situation on the German labour market Policy measure Changes in the legal framework The importance of early intervention The capacity building aspect of early intervention The rights and responsibility approach Main stakeholder in labour market integration policies Targeted labour market support measures Assessment and Preliminary Results Implementation of the Rights and responsibility approach First evidence on general and targeted labour market measures Difficulties and constraints The scope of targeted measures is still limited Obstacles for labour market access remain No targeted support for self-employed Inter-agency collaboration has to be improved further Success factors and transferability Success factors Transferability...16 References...17

6 Executive Summary The influx of large numbers of refugees to Germany in 2015/2016 created the need to step up integration efforts as a significant part of those who asked for asylum in 2015/16 need to be integrated into society and the labour market. As a reaction to this development the framework conditions for refugee integration were changed. By August 2016, Germany adopted for the first time an Integration Act as a legal basis for integration. The guiding principles of the Integration Act are "promoting and demanding" and early intervention deemed to help facilitate the integration of refugees. To meet the specific needs of the target group a number of targeted labour market integration measures have been developed over the past two years and counselling services for asylum seekers and refugees have been stepped up. The paper presents these programmes and services and discusses their potential to support the labour market integration of different groups of asylum seekers and refugees. The purpose of this exercise is to identify good practices and to discuss its transferability to other contexts. 1 Situation in the host country 1.1 Inflow of asylum seekers over the period According to the EASY pre-registration system (see Box 1), in 2016, 320,000 asylum seekers entered Germany and were allocated to a reception facility, compared to 1.1 million in In contrast to a sharp downturn of applicants in other European countries such as Austria or Sweden, Germany faced a record increase in asylum applications. This increase is in fact a statistical artefact resulting from delayed registration due to the massive inflow of newly arriving asylum seekers since mid Figure 1 shows that since end of 2016 the numbers of registered asylum seekers are roughly equal to the number of applicants. This reflects a normalization of processing procedures. Figure 1: Asylum applications in Germany EASY pre- registrations Asylum applications Source: BAMF Half of the applications in 2017 were made by asylum seekers from four countries (Syria 24%, Iraq 10%, Afghanistan 9.3% and Eritrea 6%). According to Eurostat, 54% of all decisions were positive in the first quarter of 2017; out of these positive decisions, 25% got a protection status according to the Geneva Convention, 22% a subsidiary protection September,

7 and 7% a protection for humanitarian reasons. Recognition rates have been considerable higher for asylum seekers from Syria (94%), Eritrea (~77%) and Iraq (~57%) than from Afghanistan (~44%). By August 2017, ~451,500 refugees of working age (338,500 with a Convention status and with subsidiary protection) as well as 113,5000 persons with a tolerated status (see Box 1) have been living in Germany, whereas about 114,000 decision were still pending (BAMF, 2017). These figures suggest that about one million refugees of working age have to be integrated into the labour market in the years to come. Box 1: Definition of target groups Asylum seekers are people who have formally applied for asylum, but whose claim is pending. In contrast to most other countries, Germany has a two-tiered asylum registration system by which people are first registered as prospective asylum applicants (under the so-called initial registration of asylum candidates EASY). They are subsequently invited to formally file an asylum request. Refugees are people who have successfully applied for asylum and have been granted some sort of protection, which can be either a formal refugee status according to the Geneva Convention or for humanitarian reasons (incl. the status provided by the German fundamental law). Furthermore, it includes persons granted subsidiary protection, which is given to a person who does not qualify as a refugee, but would risk serious harm if returned to his or her country of origin. Asylum seekers who cannot be returned to their country of origin after being denied refugee status due to a number of specified obstacles (e.g. health problems; administrative obstacles), receive a toleration in Germany, meaning that the deportation is temporarily suspended. A toleration status is not a residence title but a certification of the temporary suspension of deportation. Funding for integration has increased significantly, with the bulk going to integration courses and active labour market polices. Federal funding for the integration courses has increased from EUR 244 million in 2015 to EUR 559 million in 2016 and EUR 610 million in The budget for vocational language learning was increased from EUR 179 million in 2016 to EUR 410 million in Moreover, the federal budget for active labour market policies has increased by EUR 575 million to EUR 8.5 billion in 2016 and by a further EUR 400 million to EUR 8.9 billion in 2017 (Deutscher Bundestag, 2016). In December 2016, funding for the Länder responsible for the reception of asylum seekers - was further increased by an additional EUR 2 billion per year until 2018 earmarked for integration measures. In addition, funds from the unemployment insurance have been dedicated to active labour market policies measures for asylum seekers and refugees. 1.2 Demographic characteristics In the first half of 2017, 62% of applicants were men and 38% women. Refugees age distribution further indicates that there is a considerable challenge to integrate young refugees in Germany s vocational training system. In 2017, 37.5% were between 16 and 30 years old. First representative results on educational backgrounds and professional skills (based on the IAB-BAMF-SOEP Refugee Survey (Brücker et al., 2016) covering refugees who September,

8 arrived between 2013 and beginning of 2016) show that levels of formal education vary widely 1. With respect to schooling: 55% have spent a minimum of ten years in formal schooling; 12% have attended primary school; 33% have attended lower secondary school (of which 26% have obtained a degree); 40% have attended upper secondary school (of which 35% obtained a degree); 10% have not attended any school. A lower share has attended vocational training or university education: 18% have attended college/university (12% have a degree); and 14% have attended vocational training (incl. school-based) and 9% have a degree. There is a considerable gender gap with respect to education but also with respect to work experience. While 81% of men between 18 and 65 years have already gained experiences on the labour market in their country of origin, only 50% of women did so. 38% of all respondents in the IAB-BAMF-SOEP Refugee Survey have worked in the country of origin as clerical workers, 30% were blue-collar workers, 27% self-employed and 5% public officials (Brücker et al., 2016). Motivation and work aspiration of the asylum seekers are high. It is noteworthy that among those without employment in the 2016 IAB-BAMF-SOEP survey, 78% indicated that they definitely want to work. This mirrors findings of a previous survey among refugees in Germany by the The Federal Office for Migration and Refugees (Bundesamt für Migration und Flüchtlinge, BAMF in the following), where labour market integration was by far the most often mentioned objective during their stay in Germany (Worbs and Bund, 2015). Among those asylum seekers and refugees already registered by August 2017 as unemployed with the Federal Employment Service (Bundesagentur für Arbeit, BA in the following) 70 % out of ~200,000 were male and 60 % younger than 35 years. Much more asylum seekers and refugees were registered as jobseekers (~500,000), but not (yet) as unemployed as they are still participating in full-time integration courses or other active labour market measures. 1.3 The German VET system Most of the asylum seekers are from countries that do not have an educational system that is comparable to the German vocational and education training system (VET). Many newcomers have work experiences in trades and technical or commercial professions that do not require a formal education. Therefore, many asylum seekers may have vocational skills acquired through on-the-job training or other educational programmes but for which they have no educational diplomas or certificates. As the German labour market often requires formal vocational qualifications, usually provided after three years 1 Data from the first half of 2017 confirm these findings. 20% of the interviewed (on a voluntary basis) during registration at BAMF have attended only primary school, 34% have attended a lower secondary school and 20% a higher secondary school. 16% went to university and 12% had no formal school education. Women were less likely to go to school than men. Referring to the 10 main source countries, applicants from Iran had the highest and those from Somalia the lowest level of education (Neske, 2017). September,

9 of a highly standardised (dual) apprenticeship training 2, the lack of such qualifications restricts the access to many crafts, technical, administrative and service occupations. These findings do not give cause for great optimism for an easy and quick labour market integration. For a qualified labour market integration beyond unskilled or semi-skilled jobs (Helfertätigkeit) extensive professional qualification and upskilling measures will be necessary in most cases. Work first or train first is therefore an important question for planning and providing support measures for labour market integration. In order to adapt the vocational education and training path to the life circumstances of the refugees, more flexibility with respect to the traditional qualification path in the German VET system is needed. Enabling young refugees to enter the VET system in a lowthreshold way to gain the necessary skills gradually implies, however, not only a stronger modularization of the standardized dual apprenticeship training path but also more flexibility towards skills assessments. It also requires to convince refugees about the long-term advantages of job qualification, even if some years have to be invested. Many refugees prefer to take up (unskilled) employment as quickly as possible in order to provide financial support for the family members still living in the country of origin. In this context new measures of combined language and job training are important and more promising than mere sequential approaches. 1.4 The situation on the German labour market The German economy has been experiencing a considerable upswing in the past years. The (harmonised ILO) unemployment rate, as of July 2017, was as low as 3.6% which is by far the lowest rate since the German unification. There is a shortage of skilled labour as well as of trainees, particularly in health care and in technical professions. On the other side, a considerable increase in unskilled or semi-skilled jobs has been recorded in the last years. Between mid-2013 and mid-2016 low skilled employment (Helfertätigkeit) subject to social security increased by about persons (BA, 2017a). Nearly 50 % of the already employed refugees ( in June 2017) have found work in this segment of the labour market. In the future, however, employers see employment opportunities predominantly in medium-skilled (50% of employers) and high-skilled (15%) positions (OECD, 2017). German businesses are generally willing to hire refugees. By the end of 2016 approximately every sixth enterprise in Germany (~ ) already employed refugees as trainees, interns or permanent staff. Employers of larger companies seem to hire refugees rather because of corporate social responsibility whereas smaller trades and skilled crafts firms do see an immediate business case due to current or future labour shortages. (OECD 2017, Flake et al. 2017). The available data shows that so far the labour market integration of the recent cohort of asylum seekers and refugees follows the patterns of the past. In the 2016 IAB-BAMF- SOEP Survey, 31% of the pre-2014 arrivals had a job, compared with 22% of the 2014 arrivals and 14% of those who arrived in 2015 and early These figures of low initial outcomes but rapid progress in the early years are in line with those observed in Germany for former refugee cohorts. 2 The dual VET-system is an integral part of the general education and training system in Germany. It is called a dual apprenticeship training because training takes place both in firms and public training schools. The system provides 344 certified trained occupations, designed by the government and industry. Most apprenticeships (250 of 344) last 36 months. An apprenticeship prepares students directly for the labour market. The dual system enjoys a high reputation in Germany, especially from the employer side since all apprentices are highly involved in many day-to-day processes. September,

10 2 Policy measure 2.1 Changes in the legal framework Since 2015 the German legal asylum system has been comprehensively reformed. On the one side, rules have been tightened by, e.g. facilitating the forced return of rejected applicants. On the other side, the conditions to speed up the integration of refugees and specific groups of asylum seekers have been improved. A key element of these changes regards labour market access for asylum seekers. In order to facilitate access to the labour market the waiting time for asylum seekers has been shortened in 2014 by law to three months after registration 3 and since August 2016 (Integration Law) further restrictions such as the priority review have been temporarily abolished (from August 2016 until August 2019). The priority review is suspended in 133 of 156 labour agency areas (areas to which a local labour office is assigned) with low unemployment rates. The priority review requires employers to prove that no domestic worker or other EU citizen could have been employed. In August 2016, Germany adopted for the first time an Integration Act as a legal basis for integration. The guiding principles of the Integration Act are promoting and demanding and early intervention deemed to help facilitate the integration of refugees. At the same time the law describes the duties of asylum seekers and refugees. They are obliged to make an effort to integrate and if integration measures or cooperation obligations are refused, social benefits can be reduced. In order to manage the high numbers of asylum applications and long processing times differential treatment rules for different categories of asylum seekers have been introduced: Asylum seekers with a good prospect of being allowed to stay (~ 30% of all working age asylum seekers by end of August 2017). This is not a legal but an administrative category. In practice, asylum seekers in this group come from countries with previous protection rates of over 50 percent (currently Syria, Eritrea, Iraq, Iran and Somalia). This group is the preferential group for early integration measures, such as an integration course covering language training and civic orientation. They have also access to PES job placement services and mainstream active labour market measures. Asylum seekers from safe countries of origin (Bosnia and Herzegovina, Albania, FYR Macedonia, Montenegro, Kosovo, Serbia, Ghana and Senegal) mounting to ~ 3% of all asylum seekers who are more than 18 years old in August Applicants from safe countries of origin are not allowed to work and do not have access to labour market integration support measures. Asylum seekers of other countries with an unclear prospect to stay in Germany. This group is considered to consist of many complex cases and has a subordinated access to integration support measures (~67% of all adult asylum seekers in August 2017) Asylum seekers with a tolerated stay: Germany legally recognises a "tolerated stay for rejected asylum seekers whose deportation is suspended for factual, legal or political reasons (~113,000 persons by August 2017). Tolerated persons have access to employment after three months and to integration support measures. Since August 2015 the possibilities for well integrated "long-term tolerated persons to change into a legal residence status were facilitated by amendments to the Residence Act. 3 32, para. 1 of the Employment Ordinance has been amended. However, employment is not possible as long as asylum seekers are obliged to stay in an initial reception facility. September,

11 2.2 The importance of early intervention The idea behind giving dedicated groups of asylum seekers access to integration measures early on (before a decision on their application is taken) is to use the often lengthy time period during the asylum procedure for language training, skills assessment and labour market preparation to shorten the time it takes to enter employment and become self-sufficient. As in practice early intervention can be costly and may mean diverting support to asylum seekers before residence permits are granted the Federal Government has set up the above mentioned preferential rules. Before early intervention was anchored in German legislation as a principle, it has been tested and monitored. The pilot project Early intervention Early Labour Market Integration of Asylum Seekers which run from 2014/2015 targeted (skilled) asylum seekers with a high likelihood of staying in Germany and who were already in reception centres. Asylum seekers were offered an identification of skills, training, further job counselling or job placement. The pilot project highlighted challenges and underlined the need to combine a swift access to the labour market with a mix of appropriate commitment and resources for language courses and qualification measures as well as intensive networking (Daumann et al., 2015). 2.3 The capacity building aspect of early intervention An important finding of the evaluation of the pilot scheme Early Intervention was also the need to develop specific expert knowledge and to establish teams of experts in forced migration within employment agencies as counselling and placement of asylum seekers pose challenges to the agencies, which in many respects differ from the usually offered PES standard services. Inter-cultural education as well as specific legal knowledge was identified as particularly important. Between November 2015 and June 2016 more than people from agencies and jobcentres have been participating in intercultural awareness rising courses with a focus on asylum and flight organised by the IQ Network and in courses on legal aspects organised by the IvAF Network (for a further description of these networks see paragraph 2.6.2). 2.4 The rights and responsibility approach The Integration Act follows the principle of rights and responsibilities, or in the German wording Fördern und Fordern (promoting and demanding) in accordance with the German Social Code II. After the recognition of a protection status needy refugees are entitled to the basic income scheme for jobseekers according to the Social Code II (colloquially Hartz IV). To push ahead with the integration of refugees into training and the labour market the Introduction Law explicitly provides: Improved rules for the promotion of training: Access to vocational training and preparatory traineeships or assisted training immediate after 3 months for asylum seekers with good perspectives to stay and after 12 months for tolerated persons. The first group has also access to training grants for trainees and students after 15 months. Legal certainty for trainees: A guaranteed residence permit during and after the apprenticeship ( 3+2 rule ) even if the asylum application was rejected in the meanwhile. This regulation is deemed not only to create a strong incentive for VET students to finish their training, but also gives employers more certainty. Particularly for vocational education and training, which includes a considerable investment from the side of the employer, having more certainty regarding the legal status is highly important. The above mentioned suspension of the priority review for three years in most labour agency districts. Easily accessible work opportunities. In August 2016, the Federal Government launched a programme of "refugee integration measures (Flüchtlingsintegrationsmaßnahme/FIM) covering 100,000 subsidised work September,

12 opportunities with simple occupations (e. g. gardening mainly inside the reception facility) for refugees still in the asylum procedure. Participants receive EUR 0.80 an hour, in addition to the social benefits which they continue to receive for a period of up to six months 4. These work opportunities do not constitute formal employment, but instead seek to activate asylum seekers and provide a first insight into working life in Germany. Early access to the main integration instrument, the Integration course, which combines language training and civic orientation. Already in October 2015, the integration courses were made accessible for asylum seekers with high chances to remain in the country. At that time, the amount of hours for orientation courses (practical, cultural and historical information on Germany) was increased from 60 to 100 hours. The language component (600 hours) remained unchanged, so a focus has been put on civic orientation. Under the new Act, participation can be mandatory for asylum seekers and refugees. At the same time the waiting time to start an integration course should be reduced from three months to six weeks. Providers of integration courses are now obliged to publish their course offer and available places. The rejection or abandoning of an integration course or a work opportunity could also be sanctioned by reducing the standard benefits of the Act on Benefits for Asylum-Seekers (AsylbLG) 5. Receiving a permanent residence permit is now conditional on individual efforts to integrate. Permanent residency is granted after five years and only if refugees are well integrated (previously: three years and without conditions on integration outcomes). The conditions are: having reached A2 level in German and being able to predominantly ensure the means of subsistence. Refugees can obtain permanent residency already after three years when they have reached C1 level and are able to largely and predominantly ensure their means of subsistence. The obligation to settle in a location to which a recognised refugee has been allocated (Wohnsitzauflage) can be lifted under a number of circumstances, including when refugees will start vocational training or tertiary education elsewhere or when they or a family member have found employment elsewhere of at least 15 hours a week and receive a payment above the basic income allowance (~ EUR 712/month). The settlement restriction was largely motivated by the wish to avoid secondary migration to urban areas and to make sure that financial burdens are shared equally. To enforce this rule, refugees are only entitled to social assistance if they remain in the Land where they have been assigned to. 2.5 Main stakeholder in labour market integration policies The federal structure of Germany adds an additional layer to the already large number of different stakeholders involved in the different aspects related to the labour market integration of asylum seekers and refugees. Whereas the federal government is largely responsible for setting the legal framework for integration, e.g. regulating language courses or access to the labour market, the federal states (Länder) are tasked with the concrete implementation and often have considerable leeway in this process. In addition, they can implement their own, regional integration support measures if they wish to do so. Indeed, many regional governments have implemented integration 4 In spring 2017, the funds were cut back as in the second half of 2016 only jobs were created for asylum seekers. The money is now redistributed to the jobcentres. 5 Standard benefits are paid during the asylum procedure and can also be reduced in case asylum seekers are not cooperating actively with the authorities, i.e. by hiding the true nature of their identity or if their applications have been rejected and they refuse to leave the country. In principle, they receive only benefits to meet their basic needs. September,

13 measures and pilot projects to support the labour market integration of asylum seekers and refugees. Furthermore, municipalities are important actors in the integration process. Although they have to implement federal or regional legislation, they often operate with considerable discretion, particularly when legislation is open to interpretation or conflicting with other parts of the law. On the federal level, competencies are divided between two main actors implementing labour market integration support measures: The Federal Office for Migration and Refugees (BAMF) and the Federal Employment Agency (Bundesagentur für Arbeit, BA) BAMF is affiliated with the Ministry of the Interior and is responsible for assessing asylum applications as well as designing and implementing general and vocational language courses. BAMF has a dual role; processing asylum applications as well as supporting the integration process of migrants. BA 6 has a key role in supporting asylum seekers and refugees in finding employment and increasing their professional skills. Responsibilities are, however, split between 156 Employment Agencies in charge of labour market integration of asylum seekers prior to recognition and 303 Jobcentres providing labour market integration services for refugees who receive the tax based basic income allowance for jobseekers (Hartz IV) after a positive asylum decision was made. Once asylum seekers receive refugee status, responsibility is transferred from the BA Employment Agencies to the Jobcentres. The Jobcentres are under the supervision of the Ministry of Labour and Social Affairs (BMAS). Hence, BMAS is responsible for the implementation of the Social Code II/SGB II. Jobcentres are run either by municipalities themselves, or jointly with the local Employment Agencies. Hence, whereas Employment Agencies are responsible for the integration of asylum seekers, refugees are supported by the Jobcentres. It is worth mentioning that there is no legal obligation for asylum seekers to register with the Employment Agencies for advice. Services are used on a voluntary basis. This is not the case with respect to the services of the Jobcentres which has to be used by refugees after getting a refugee status and, thus, being eligible to the basic income allowance for jobseekers according to SGB II. In practice, the Jobcentres are tasked with the bulk of labour market integration-related measures. Currently, there is no standardised procedure on how this transition is organized but an increasing number of regional Employment Agencies and local Jobcentres have agreed on a transition procedure. However, an integration plan for individuals from a single source, i.e. supported by an Employment Agency and a Jobcentre, does not exist currently. 2.6 Targeted labour market support measures Beyond giving asylum seekers with high prospects to stay as well as tolerated persons an early access to mainstream ALMP measures, measures to meet the specific needs of the target group have been developed. Targeted support measures are increasingly provided through inter-agency collaboration Provided by the Federal Employment Agency (BA) Over the past two years, the BA has developed in cooperation with the BAMF and employer associations a number of targeted short-term programmes such as Perspectives for Refugees (PerF) or KompAS that include vocational language training, site visits to companies, skills assessment and counselling for asylum seekers and refugees. The BA has also set up an innovative pilot project (MySkills) to assess skills without having to rely on formal documentation of qualifications or work experience. In addition to the BA initiatives, a substantial number of regional governments have implemented their own pilot schemes that assess asylum seekers and refugees skills. 6 BA is Janus faced: On the one side, it delivers benefits and services that are financed by unemployment insurance contributions from employers and employees according to the Third Book of the Social Code (SGB III). In this context it is a self-governing body. On the other side, it implements on behalf of the Government (BMAS) and jointly with municipalities services under the Second Book of the Social Code (SGB II). September,

14 Perspectives for refugees (PerF) The PerF programme aims at teaching job-related German language skills, providing detailed counselling for a first orientation on the German labour market and informing about the possibilities of the recognition of qualifications/degrees acquired abroad. In addition, support for the preparation of job applications (e.g. CV writing) and job application strategies are part of the programme. A six-week work practice to identify skills in a real company is a particular feature of the programme which lasts 12 weeks. The provider in charge looks for suitable companies or in exceptional cases carries out the competence check in its own facilities. The measure ends with a written report on each participant s professional skills and his or her abilities and recommendations for further needs of action. PerjuF and PerjuF-H perspectives for young refugees in the skilled craft sector The programme is administered by the BA and aims at providing orientation in the German training and employment system for young refugees and at the same time improving their German language skills. Through sufficient knowledge about the German training and employment market, the young refugees should be able to decide autonomously on their vocational choice and ideally start a dual apprenticeship training. Usually, a course lasts six to eight months. A similar programme exists for the skilled craft sector (Perjuf-H) which is also the first step within a more holistic approach: Figure 2: The Step-by-Step approach to Apprenticeship Training Perspectives for young refugees in the skilled craft sector (Perjuf-H) Vocational guidance measure for young refugees in the skilled craft sector offered by BMBF Initial qualification courses (EQ) Company apprenticeships Vocational training support Vocational training support courses (abh) courses (abh) Assisted training (AsA) Figure 2 represents the implementation model of the cooperation agreement between BA, the Federal Ministry of Education and Research (BMBF) and the German Confederation of Skilled Crafts aiming to prepare young refugees for skilled training in the skilled craft sector. Vocational training support courses (abh) or introductory traineeships (qualification courses/eq) are alternative pathways seeking to support young people by preparing them for (dual) in-company apprenticeships lasting usually three years. Assisted training (AsA) is an offer of employment agencies to assist trainees during the time of apprenticeship to avoid drop-outs. Similar cooperation models ( Kommit, Step by step ) involving BA, BAMF, employers and trade unions have been developed beyond the skilled craft sector. Their aim is to prepare young refugees step by step to enter and complete a dual apprenticeship training or to support on-the job training and vocational language training to gain occupation related partial qualifications for refugees older than 25 years. Kommit is planned to take place in four phases and is jointly run by BA, BAMF and employers. PerF-W- Perspectives for female refugees Based on the experience that many refugee women need special support to develop their own resources and to deal with everyday obstacles (such as childcare) the programme aims to give women orientation within the German training and employment market. It covers aspects such as role and rights of women in Germany, access to the training and employment market, practical professional experience, job-related German September,

15 language training, strengthening of competences and activation as well as support during their participation through the provision of childcare. A part-time course lasts four months. There is also a similar programme, Strong in the Job, funded by the Ministry of Family Affairs, Senior Citizens, Women and Youth for which all migrant women and natives with a migrant background are eligible. Under this programme, around 90 local projects are currently funded. However, in contrast to PerF-W, language training is not a central component. KompAS - competence assessment, early activation and language acquisition The programme combines the language promotion of the BAMF with BA labour market policy instruments (according to 45 SGB III). KompAS can be arranged flexibly by taking regional needs into account or by adapting the content and time frame of the measure to individual circumstances. In addition to the integration course, elements of skills testing at the workplace, reducing or eliminating obstacles for access to jobs/ internships and information on the labour and training market are included. Both programmes are synchronised and conducted in parallel. As a result, language skills can be better developed and at the same time preparations for qualifying, training and taking up employment are strengthened. The synchronization of the different admission and access routes into measures was a challenge for all parties involved. Meanwhile, KompAS has been continuously developed further by adapting it to practical requirements by e.g. including new target groups. KompAS 3.0 is scheduled for October Intensive coordination among all parties involved with respect to monitoring remains, however, important. As part of the implementation of KompAS, it was found that, contrary to the original (self) assessment of the refugees, there is an increased need for alphabetization in the target group. MySkills identifying informal and non-formal competencies Figures from the IAB-BAMF-SOEP Refugee Survey confirm the need to identify solutions that allow the assessment of non- and informal skills and competencies of those who have recently arrived. The large majority have no vocational or university degree, but 73% reported having worked before coming to Germany possessing vocational skills acquired through on-the-job training in trades and technical or commercial professions (Brücker et al., 2016). From the above described BA programmes incl. skills assessment exercises at the workplace such as PerF so far only a fraction of asylum seekers and refugees have benefitted (see figure 3 below). To provide a more pragmatic and standardised assessment tool, available nationwide in all employment agencies and jobcentres and scalable to large numbers, the BA has been developing in cooperation with partners a tool called MySkills, an interactive, computer-based testing tool of vocational skills for people without formal qualifications. Technology-based tests supported by images and videos are available in six languages. The identification and assessment of existing knowledge has been developed for around 30 occupations (e.g. mechatronics, salesperson or plumber) by identifying differentiated competencies within profession profiles. The tool assesses vocational competences below the level of formal qualifications. The outcomes of the tests are added to the jobseeker s profile or result in updated CVs like providing guidance to the PES counsellor to undertake further steps. MySkills is currently piloted. Testing in eight professions will be operatively launched in all employment offices by November 2017 and the remaining 22 professions in early Migration Counselling Networks On the federal government level, there are special institutional arrangements that aim at fostering the labour-market integration of migrants, refugees and asylum seekers. The two special institutions are the two network programmes Integration by Qualification (IQ) and Integration of Asylum seekers and Refugees (IvAF). Both programmes aim primarily at an efficient networking of employment agencies, September,

16 Jobcentres, foreigners authorities, employers, and providers of job-training measures, educational institutions etc. at the local level to support asylum seekers and refugees in getting access to the labour market. The IvAF is one out of several federal programmes available for asylum seekers. IvAF is similar to the general network on migration counselling Migration Counselling Service for Adults (MBE) and the Youth Migration Services (JMD) 7 funded by the BMI (Federal Ministry of Interior) and co-funded by the European Social Fund (ESF). The services are implemented by welfare associations (e.g. Caritas) offering integration support for migrants already since There is at least one MBE/JMD Advice Office in every city and district in Germany. The ESF Integration Guideline has been further developed to integrate gradually people with special difficulties into work or training. The IvAF networks are currently supplemented with extra staff to meet the special requirements of asylum seekers and refugees. IvAF and IQ aim at an efficient networking of Employment Agencies, Jobcentres, foreigners authorities, employers, and providers of job-training measures, educational institutions etc. at the local level to support asylum seekers and refugees in getting access to the labour market. IvAF has currently some 200 individual projects where asylum seekers and tolerated persons are supported by information, orientation and advice of all kinds including language learning, school and work, labour and social law, claiming of benefits, family and parenting, health etc. The Integration through qualification" (IQ) networks were established in 2005 (Immigration Act) and extended in the framework of the Recognition Act (2012) 8. It is funded by the BMAS and is also co-funded by the ESF. IQ works in cooperation with the Federal Ministry of Education and Research (BMBF) and the Federal Employment Service (BA). There are regional offices in all 16 Länder co-ordinating the local programmes. Around 120 contact points provide information and counselling. IQ networks have a key role in the recognition process of foreign qualifications. It offers support with access to information, vocational direction, and the recognition of qualifications in regulated and non-regulated professions and develops upskilling measures (e.g. bridging courses to gain full recognition). The Recognition Act also provides the possibility to use other procedures in a so-called qualification analysis (e. g. trial work in a company, specialist discussions, role play, simulated conversation, and/or the presentation of work results) for refugees with formal degrees who are not able to document them. The Network offers around 140 projects for upskilling if counselling or the recognition procedure showed that qualifications are not sufficient. Such upskilling measures can include both professional training as well as language tuition and most of them are currently provided for health care professionals. Currently, a major focus of the Network is on inter-cultural and legal 7 The youth migration services (JMD) especially support young immigrants between the ages of 12 and 27 in the transition of school / training / work and provide support during the integration courses. In addition, also parents are counselled, who need advice on the education and training of their children. JMD-Offices cooperate with other relevant institutions. 8 The Act to improve the assessment and recognition of professional qualifications and vocational education and training skills acquired abroad gives all immigrants (incl. asylum seekers and refugees) an enforceable legal right to go through a recognition process that tests whether their professional qualifications obtained abroad are equivalent to the respective qualification in Germany. The Recognition Act covers only occupations that are governed by Federal law. Additionally, there are laws on the Länder level in force since 2014 regulating the recognition of professions in their jurisdiction (e.g. for teachers, engineers). The Federal Recognition Act encompass 84 regulated occupations (including the craft trades where a licence and possession of a master craftsman qualification is required in order to operate a company) and 519 nonregulated occupations (i.e. the 330 dual training occupations and 180 advanced training occupations that are governed by the Vocational Training Act and the Crafts and Trades Regulation Code). For the first time, the Recognition Act provides skilled workers in non-regulated occupations with an opportunity to have their qualification assessed and thereby improve their chances on the labour market. Academic degrees are generally not covered by the Recognition Act. High school diplomas as well as university degrees correspond to broader occupational profiles and less to clearly-defined professions. They are assessed by a different body. The Recognition Act only applies to clearly-defined professions. September,

17 training for relevant actors, including staff from the Employment Agencies and Jobcentres Vocational Language Training Already since 2008, the German Government has been offering vocational language tuition (so-called ESF-BAMF Courses, co-financed through the ESF). In October 2015, the government decided to make vocational language tuition a core element of integration policy and introduced the new programme Vocational Language Training (berufsbezogene Deutschsprachförderung) as a follow-up to the integration course. BAMF is responsible for the new vocational language courses. Both courses are not only open for refugees with protection status but also to asylum seekers from countries with high recognition rates. The first vocational language courses under the new programme Vocational Language Training have started in July By the end of 2017, the new programme will have fully replaced ESF-BAMF courses. Participants in ESF-BAMF courses are supposed to have participated in the standard Integration course and to have reached at least German language skills at A1 level or, if they have not participated, to have a certified German language skill level B1 or higher. Courses include work-specific language tuition, including for instance vocabulary for communication in the workplace or how to write s, as well as a training module. The content of the training module depends on the course provider as well as on the individual skills profiles of participants, but they are supposed to include three components: specialized classes, an internship and site visits. Specialized classes can include, for instance, job application training, information about different occupations in Germany and IT training. There is also the possibility for course providers to offer classes only for certain occupational fields, e.g. in health care. Data from the BAMF shows that numbers of participants have remained similar in 2015 and 2016 ( and participants, respectively) and the share of asylum seekers has slightly increased to around 14% each year. 3 Assessment and Preliminary Results 3.1 Implementation of the Rights and responsibility approach So far there is no systematic reporting on how the new principles, particularly the rights and responsibility approach is implemented in practice. On the one hand, there are legally indeterminate rules such as to ensure largely and predominantly the means of subsistence by their own which might require enforceable court rulings to create legal certainty on this point. On the other hand, cases had become known where single Länder have returned trainees whose asylum application has been rejected violating obviously the so-called 3+2 rule. The low take-up numbers of the largest specific measure for asylum seekers, the work opportunities programme for refugees (FIM) administered and funded by the federal level (BMAS) - might be related rather with programme design than with noncompliance with the underlying rights and responsibility principle. FIM placements do not provide a first step into the German labour market but are rather a classical workfare programme deemed to keep participants occupied in menial and unpaid work (OECD, 2017). FIM was planned for asylum seekers still living in reception centres. Low participation numbers lead to a cut back of funds in spring The money is now redistributed to the Jobcentres. For recognized refugees receiving social benefits according to SGB II (Hartz IV) the promoting and demanding principle applies in the same way as for all SGB II benefit recipients independent of nationality or residence status. Benefits could be reduced, for example, if an unemployed person refuses to participate in a labour market measure. Except for participation in the Integration course, there is, however, no legal right to participate in mainstream active labour market policy (ALMP) measures. It is up to the September,

18 Employment Agency or the Jobcentre to decide which measures will be conducted for each individual case. Despite an international trend to make integration measures compulsory there is no conclusive evidence on its effects (Kogan 2016; Marin et al., 2016). Recent literature, however, points out that an early provision of support measures has a decisive impact on labour market integration in the longer run (OECD 2016, Hainmüller 2016). The German legal framework has been adapted to facilitate integration early on. In practice, however, there are several constrains to implement this approach consistently e.g. capacity constraints on the availability of integration courses. Moreover, to contain costs, only those with high chances of receiving international protection (~one third of all asylum seekers) - benefit from early interventions. The introduction of preferential rules are necessary to contain costs. 3.2 First evidence on general and targeted labour market measures The targeting programmes implemented by BA and BAMF are in line with findings from a number of countries suggesting that language development should be combined with work experience, internships or apprenticeships (Konle-Seidl and Boltis, 2016). Vocational language training, ideally provided on the job, is a particularly effective labour market integration measure (Liebig and Huddleston, 2014). Moreover, research evidence also shows that early contacts with employers often serves as the door to the labour market and might thus be more important for more stable positions in the longterm than vocational education courses outside the workplace (Åslund et al., 2017). Although there has been a positive development in designing programmes combining skills assessment with language learning and job-related training, participations rates in such programmes are still low (Figure 3), compared to the participants in mainstream ALMP measures. Of these , asylum seekers accounted for over , while refugees accounted for Two thirds of them were in activation and low-threshold upskilling measures (BA, 2017b). Figure 3: Participation of Refugees in targeted measures, May ,556 Geflüchtete in Maßnahmen: Total refugees in targeted measures PerF: Perspektives for refugees PerjuF: Perspektives for young refugees PerjuF-H: Perspectives for young refugees in the skilled craft sector KompAS: competence assessment, early activation and langugare training Kommit: cooperation model to enter further vocational training training 7,738 3,091 1, Geflüchtete in Maßnahmen PerF PerjuF PerjuF-H KompAS Kommit Source: BA statistics; September,

19 Note: Data for PerF are underreported due to missings in the SGB II scheme and for PerjuF/Perjuf-H due to missing from municipal jobcentres. It will take some time until the measures already taken will show effects. First evidence, however, suggests that investment in language programmes and labour market integration has high returns. Compared to asylum seekers and refugees not participating, participation in BA and BAMF measures and services increases the probability to find employment: BAMF integration courses increases by +10 %-points; ESF-BAMF-language class by +30 %-points; General labour market advice by + 8 %-points; Occupational and job-search advice by + 7 %-points; and BA Perspective for Refugees programme by+ 16 %-points. These results are based on the IAB-BAMF-SOEP survey and should be understood as correlations rather than as causal evidence (Brücker et al., 2016). A more thorough evaluation ( ) of single programmes and the interaction of different measures will be commissioned by the BMAS. Recent numbers on applications for recognition of foreign qualifications are indicating that pre-counselling activities for the target group are supportive. By the end of 2016, 44 % of participants in the pre-counselling at the IQ-Networks and 35 % in upskilling measures in professions regulated by Federal Law were refugees and asylum seekers. About one-third of the surveyed refugees in the IAB-BAMF-SOEP survey have applied for a recognition of the professional qualifications they have brought with them. About half of them have already received a feedback, which in 73 % of cases involves full and in 23 % a partial recognition (Jacobsen and Siegert, 2017). A recent evaluation of the effects of the Recognition Act since 2012 shows that nine out of ten migrants with a foreign professional qualification are employed after the successful recognition of their qualification, which means that the employment rate rises sharply by over 50%. The gross income increases by an average of EUR a month, which corresponds to an increase of 40% (BMBF, 2017). Earlier empirical results - based on the IAB-SOEP migration panel (including refugees) - has also shown that immigrants with foreign degrees being recognised as equivalent to home country degrees improve their employment rate by 23 %, reduce job-skills mismatch by 32 % and increase their wages by 28 % compared to those immigrants who did not ask for recognition (Brücker et al. 2014). 4 Difficulties and constraints 4.1 The scope of targeted measures is still limited Participation rates in the recently implemented targeted measures for asylum seekers and refugees are still low. These measures might not be well-known enough among the target group, but neither among employers. An employer survey conducted by IW Consult shows that many support measures for companies are not (yet) used because they are not known. Companies are only informed about support opportunities when they have already hired refugees (Flake et al., 2017). More information about the programmes as well as more flexibility to meet company s needs could therefore motivate more companies hiring refugees. 4.2 Obstacles for labour market access remain Although the priority check has been lifted temporarily, labour market tests for asylum seekers who have been in Germany for more than three but less than 15 months still apply. Both, the local foreigner office and the BA have to agree. In a number of cases, September,

20 the local foreigners office can directly grant an employment permit, for instance for a number of shortage occupations and highly skilled occupations that surpass a certain salary threshold. In all other cases, however, the approval of the BA is necessary in addition. The BA assesses whether working conditions and payment for the position are in line with local employment conditions. These restrictions also create considerable bureaucratic overheads for employers who wish to hire asylum seekers. The partly lengthy process with regard to work permits can lead to uncertainty among employers, which has a negative impact on their willingness to hire asylum seekers and refugees (Knapp et al., 2017). Furthermore, asylum seekers cannot be self-employed. 4.3 More support for self-employed In the IAB-BAMF-SOEP survey, about 30% of asylum seekers and refugees who came to Germany between 2013 and 2016 stated that they were self-employed in their country of origin. Refugees have access to regular support measures for selfemployment, yet it seems that so far relatively few have managed to start their own business. In the IAB-BAMF-SOEP survey, only about 2% stated that they were currently self-employed. Moreover, data from the Employment Agency show that people received financial support for starting their business in August 2016, of which only 60 (0.2%) were refugees. Targeted measures to support self-employment might thus help to enhance refugee start-ups. 4.4 Inter-agency collaboration has to be improved further The BAMF is tasked with coordinating both, the Integration courses and the vocational language courses. As there are still capacity constraints with respect to the access of high-quality and quickly available language courses for all eligible people many asylum seekers and refugees come to the Employment Agencies to ask for advice without possessing any German language skills. The Employment Agencies, however, are not allowed to offer general language courses which might hamper their integration work. The staff in the Employment Agencies are in favour of abolishing this restriction (Knapp et al., 2017). There is room to improve the transparency and cooperation between BA and BAMF also with respect to the new vocational language course offer. For a better coordination of these courses at the regional level it would be particularly important to involve Jobcentres systematically in the planning process given the limited number of regional co-ordinators responsible for the planning, co-ordination and quality of all language courses offered by the BAMF. In 2016, one co-ordinator was in charge of more than integration course participants. With the comprehensive introduction of vocational language learning courses, responsibilities of the regional co-ordinators will be further enhanced (OECD, 2017). 5 Success factors and transferability 5.1 Success factors Combined measures The common feature of the recently implemented measures aiming at early integration of asylum seekers and refugees into the German labour market combine different elements: such as language training with placement into internships or skills assessment at the workplace and information and orientation on the labour and training market. Such an approach is deemed to be more effective than mere sequential approaches. Counselling infrastructure The IQ- and IvAF Networks providing support with access to (legal) information, vocational direction; recognition of qualifications, developing upskilling measures (e.g. bridging courses to gain full recognition) and providing inter-cultural training measures September,

21 for relevant integration actors allows for a flexible approach, as stakeholders can determine the necessary services for different users. Involving employers This holds also for cooperation models recently implemented in the German context. Kommit or Step by Step build on the commitment and active engagement of employers which is particularly important as labour market integration can only be successful when employers are willing to hire and train refugees. Political will A crucial success factor of integration efforts is the willingness of all political actors to step up such efforts. It has to acknowledge that a good labour market situation and demand for labour as well as shortages of skilled workers influence positively the willingness of policy makers to strengthen integration policies and invest money. 5.2 Transferability Early intervention Early intervention combined with preferential rules in order to manage high numbers of asylum applications and long processing times may be an approach also for other countries to alleviate potential resourcing challenges and deliver services more effectively. Setting up pilots to test and monitor outcomes of early intervention might be helpful also in other contexts. Development of measures To combine measures instead of a mere sequential approach is easily transferable to other contexts. Due to the preference of many asylum seekers and refugees to earn money quickly in order to support their families at home, a phased approach of work first and on-the-job upskilling might be a feasible solution also for other countries. Specific structure of the German VET system The pathways to qualified employment in the German context are determined by the particular structure of the German VET system. A lack of formal vocational qualifications does not restrict necessarily the access to crafts, technical, administrative and service occupations in other countries. Upskilling pathways for low skilled adults might therefore be developed differently in other contexts. This holds also for recognition models and procedures relevant for non-regulated occupations and the validation of informal and non-formal skills and competencies. September,

22 Peer Review on Integration of Refugees into the Labour Market Host Country Paper References Åslund, Olof; Forslund, Andres; Liljeberg, Linus (2017): Labour market entry of nonlabour migrants Swedish evidence. IFAU Working Paper 2017:15 BA (2017a), Amtliche Nachrichten der Bundesagentur für Arbeit Arbeitsmarkt 2016, Sondernummer 2 BA (2017b), Fluchtmigration (Forced migration). Berichte: Arbeitsmarkt kompakt, August 2017 Internet: Content/Statistische-Analysen/Statistische-Sonderberichte/Generische- Publikationen/Fluchtmigration.pdf BAMF, 2017: Asylgeschäftsstatistik. Internet: k/asylgeschaeftsstatistik-node.html BMBF (2017), Bericht zum Anerkennungsgesetz 2017 (Report on the Recognition Act). Internet: Brücker, Herbert; Liebau, Elisabeth; Romiti, Agnese, Vallizadeh, Ehsan, (2014), Arbeitsmarktintegration von Migranten in Deutschland: Anerkannte Abschlüsse und Deutschkenntnisse lohnen (Labour market integration of migrants: Recognised foreign credentials and German language skills pay off). IAB-Kurzbericht, 21.3/2014, Nürnberg. Internet: Brücker, Herbert et al. (2016), IAB-BAMF-SOEP-Befragung von Geflüchteten: Flucht, Ankunft in Deutschland und erste Schritte der Integration (IAB-BAMF-SOEP Refugee survey: Flight, Arrival in Germany and First Steps to Integration). IAB-Kurzbericht, 24/2016,Nürnberg. Daumann, Volker; Dietz, Martin; Knapp, Barbara; Strien Karsten (2015), Early Intervention Modellprojekt zur frühzeitigen Arbeitsmarktintegration von Asylbewerberinnen und Asylbewerbern: Ergebnisse der qualitativen Begleitforschung, (Early Intervention- pilot project to assess the early labour market integration of asylum seekers) IAB-Forschungsbericht, No. 3. Deutscher Bundestag (2016), Haushaltsgesetz 2017 (Budget Act 2017), Drucksache 18/9200 v ; Internet: Flake, Regina; Jambo, Svenja; Pierenkemper, Sarah; Placke, Beate; Werner, Dirk, 2017, Beschäftigung und Qualifizierung von Flüchtlingen in Unternehmen Die Bedeutung von Unterstützungsangeboten bei der Integration, IW-Trends Hainmueller, Jens; Hangartner, Dominik; Lawrence, Duncan, 2016, When lives are put on hold: Lengthy asylum processes decrease employment among refugees, Science Advances (2016). DOI: /sciadv Jacobsen, Jannes; Siegert Manuel(2017), Anerkennung beruflicher Qualifikation (Recognition of vocational qualifications). In: Brücker, Herbert, Rother, Nina, Schupp, Jürgen (Hrsg.): IAB-BAMF-SOEP-Befragung von Geflüchteten 2016: Studiendesign, Feldergebnisse sowie Analysen zu schulischer wie beruflicher Qualifikation, Sprachkenntnissen sowie kognitiven Potenzialen. DIW Politikberatung kompakt 123. Knapp, Barbara; Bähr, Holger; Dietz, Martin; Dony, Elke; Fausel, Gudrun; Müller, Maren; Strien, Karsten (2017), Beratung und Vermittlung von Flüchtlingen (Counselling and placement of refugees). IAB-Forschungsbericht, 05/2017, Nürnberg Kogan, Irene (2016). Integration Policies and Immigrants Labor Market Outcomes in Europe. Sociological Science, 3, Konle-Seidl, Regina; Boltis, Georg (2016): Labour market integration of refugees: Strategies and good practices. Study for the European Parliament. Brussels. Internet: September,

23 Peer Review on Integration of Refugees into the Labour Market Host Country Paper Liebig, Thomas; Huddleston, Thomas (2014), Labor Market Integration of Immigrants and their Children: Developing, Activating and Using Skills, in International Migration Outlook, OECD Publishing, Paris, Martín I., A. Arcarons; J. Aumüller, P. Bevelander, H. Emilsson, S. Kalantaryan, A. Maciver, I. Mara, G. Scalettaris, A. Venturini, H. Vidovic, I.Van Der Welle, M. Windisch, R. Wolffberg, A. Zorlu (2016), From refugees to workers: Mapping labour market integration support measures for asylum-seekers and refugees in EU member states. Volume II: Literature review and country case studies. Neske, Matthias (2017), Volljährige Asylerstantragsteller in Deutschland im ersten Halbjahr 2017: Sozialstruktur, Schulbesuch und ausgeübte Berufstätigkeiten (Adult asylum applicants in Germany in the first half of 2017: Social structure, Schooling and occupational activities).bamf-kurzanalyse, Ausgabe 3/2017. Nürnberg e9_sozial-komponenten-halbjahr2017.pdf? blob=publicationfile Worbs, Susann, Bund, Eva (2016), Asylberechtigte und anerkannte Flüchtlinge in Deutschland: Qualifikationsstruktur, Arbeitsmarktbeteiligung und Zukunftsorientierungen (Asylum seekers and recognized refugees in Germany: Qualifications, labour market participation and aspirations). BAMF Kurzanalyse 01/2016 OECD (2016), Making Integration Work: Refugees and Others in Need of Protection, OECD Publishing, Paris. Internet: OECD (2017), Finding their Way. Labour market integration of refugees in Germany. OECD Publishing, Paris, March 2017 September,

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