Labour market integration of asylum seekers and refugees. Denmark

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1 Labour market integration of asylum seekers and refugees Denmark Written by Per Kongshøj Madsen April 2016

2 EUROPEAN COMMISSION Directorate-General for Employment, Social Affairs and Inclusion Unit A1 Employment and Social Aspects of the European Semester European Commission B-1049 Brussels

3 EUROPEAN COMMISSION Labour market integration of asylum seekers and refugees Denmark April, 2016 Directorate-General for Employment, Social Affairs and Inclusion European Employment Policy Observatory

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 This document has been prepared for the European Commission however it reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein. More information on the European Union is available on the Internet ( Luxembourg: Publications Office of the European Union, 2016 ISBN ABC DOI European Union, 2016 Reproduction is authorised provided the source is acknowledged.

5 Summary table on support available to (a) asylum seekers; (b) refugees; and (c) third country nationals (TCN) in Denmark (underlining of the answer denotes that the provision is problematic) Refugees Asylum Seekers Third Country Nationals Recipients of Subsidiary Protection Is the PES involved in the labour market integration of (a) asylum seekers (b) refugees (c) third country nationals (TCN)? Do (a) asylum seekers, (b) refugees and (c) TCN have access to: Hiring subsidies YES NO YES N/A YES NO YES N/A Start-up (self-employment) support NO NO NO N/A On-the-job training YES NO YES N/A Other labour market integration support? YES NO YES N/A Is there a systematic mentorship scheme in place for (a) asylum seekers (b) refugees and (c) TCN? Are (a) refugees, (b) asylum seekers and (c) TCN eligible to receive unemployment benefits or unemployment assistance? Are benefits that are generally received by (a) refugees, (b) by asylum seekers (if applicable) and (c) TCN, conditional on job search requirements/activation? Does the support provided to (a) asylum seekers, (b) refugees (c) TCN end as soon as they get a job? YES NO YES N/A YES NO YES N/A YES YES YES N/A YES YES YES N/A Please specify which services asylum seekers or refugees have access to that other TCN do not have access to. When granted asylum: Participation in the special integration programme While seeking asylum: Housing and economic support in an asylum centre N/A N/A April,

6 1 What is the role of PES in integrating (a) (some 1 ) asylum seekers 2 and (b) refugees 3? If the PES is not involved, is there another agency dealing with the labour market integration of migrants? Does the support offered differ according to different factors (e.g. socio-demographic characteristics, family circumstances, host country language skills etc.)? Does the support differ according to the skill level of the target group? Are there specific programmes for these target groups? To what extent do these target groups benefit from measures for broader target groups? (a) Asylum seekers While the application for asylum is being processed, asylum seekers live in asylum centres, most of which are administered by the Danish Red Cross on behalf of the Danish Immigration Service (Udlændingestyrelsen). 4 During this period the asylum seekers are activated by the staff of the asylum centre with practical tasks that are related to the day-to-day running of the centre. These tasks can be cleaning, cooking, minor repair works etc. The asylum seekers also have to take part in education and language training provided by the asylum centre. 5 If it is decided to process the application in Denmark, the education of the asylum seeker will cover subjects like Danish, English or the native language depending on the prerequisites of the participants (cf. below concerning the Danish courses for refugees). Education may also include subjects which give the asylum seeker skills that can help with labour market integration in Denmark, if he or she gets a residence permit, and prepare him or her to live in the country of origin, if not granted status as a refugee. If it is decided that the case of the asylum seeker will be further processed in Denmark, he/she will after six months also have the right to work outside the asylum centre under certain conditions: The asylum seeker must be over 18 years old. Access to work includes any regular employment without public subsidy. It can be full-time or part-time work and it can be paid employment or unpaid traineeships. Wage and employment must be equivalent to those of other employees in similar employment and conditions must be customary for the Danish labour market. There is no access to self-employment. The asylum seeker cannot start work before he or she has signed a contract with the Danish Immigration Service on the conditions of work. If the applicant works before he or she has signed a contract with the Danish Immigration Service, he or she will be sentenced to a fine or imprisonment for up to one year, and the employer can be fined or imprisoned for up to two years. 1 The reasoning for including (some) is that there is no requirement by the EU that asylum seekers are included in integration policies. 2 Persons who have applied for international humanitarian protection but have not been granted it yet. 3 Covers all beneficiaries of international humanitarian protection both refugees and subsidiary protection. 4 See 5 See April,

7 If paid, the income from employment is deducted from the benefit paid to the asylum seeker from the Danish Immigration Service. The job or traineeship can be found by the asylum seeker, perhaps with the assistance of the staff of the asylum centre. During the asylum period the asylum seeker will be under the auspices of the national Danish Immigration Service and have no access to the services of the jobcentres, which are administered by the municipalities. (b) Refugees After having been granted asylum, refugees are sent to the Danish municipalities according to criteria which aim at achieving an even distribution of refugees across Denmark. 6 The task of the municipality is to integrate the refugee into Danish society and the labour market. Integration activities have three main components: Housing etc. Municipalities are responsible for housing the newly arrived refugee and assisting him or her with the practical tasks of settling into the local community. Other integration efforts are held as part of the municipalities' overall responsibility for various areas such as education, health care, activities, social work, etc. A special integration effort takes the form of an integration programme, which will help to ensure that newly arrived refugees and family reunified foreigners acquire the necessary qualifications to succeed in Denmark and become selfsupporting through employment. The integration programme should on average amount to 37 hours per week including preparation for Danish courses and lasts for a maximum of three years. The programme is assumed to take place evenly over the entire integration period. The programme cannot generally be extended beyond the three years. The Danish courses have three different tracks depending on the prerequisites of the participants: 7 Danish course 1 is for students who cannot read and write in their native language, as well as Latin illiterate, do not know a European writing system. The goal of teaching is basic skills in oral Danish and in the reading and writing skills in order to succeed in the Danish labour market and as a citizen in Danish society. The level equals A2 in writing and B1 in writing on the CEFL. Danish course 2 is for students who have a short educational background from their home country. The goal of the education is to understand, speak and read Danish in order to be competitive on the Danish labour market, in subsequent labour market training and as a citizen in Danish society. The level equals B1 in writing and speaking on the CEFL. Danish course 3 is for students who already have a medium or long cycle educational background. It may be a vocational education, secondary education or higher education. The goal of Danish Education 3 is that students should be able to get a job or take continuing education and an active life as a citizen in Danish society. The level equals C1 in writing and speaking on the CEFL. The integration programme can last for less than three years, if the refugee no longer needs it, because s/he has been employed or has entered formal education. If the refugee loses the job and applies for social assistance within the first three years, the rehabilitation programme is resumed. 6 See 7 See April,

8 The administrative organisation of the integration programme may differ between municipalities. However the employment-oriented efforts will normally be the responsibility of the local PES (the job-centre), which therefore plays a major role in the integration of refugees during the period after they have been granted asylum. In 2007, a total of recipients of cash benefits took part in the integration programme. In 2015 their number increased to according to the database of the Danish Labour Market Authority (jobindsats.dk). The vast majority was categorised as not being employable at present. In 2015 this share was 93 %. One especially notes the steep increase in the number of participants in recent years. Table 1 gives an overview. Table 1: Number of participants in the integration programme Source: Jobindsats.dk Number persons of Full-time participants How does the support provided to (a) (some) asylum seekers and (b) refugees compare to other categories of migrants (third country nationals)? (a) Asylum seekers The asylum centres under the auspices of the Danish Immigration Service only target the people that apply for asylum after having arrived in Denmark. (b) Refugees As described under Q1, refugees take part in a mandatory three year integration programme. This programme is also mandatory for foreigners who have been reunited with non-resident persons (family reunification). Family reunification is possible with resident refugees and also non-refugees. An example of the latter is a foreigner, who has been reunited with a Dane. The municipalities also offer a voluntary introduction programme, which is targeted at other migrants and their accompanying family members, foreign students, au-pairs and people with the right to stay in the country under EU rules. This introductory course is a less intensive course, which may consist of employment-related offers and an offer of 250 hours of work-related language training. After the 250 hours of work-related language training, the migrant has the right to continue in further Danish language courses offered by the municipality. 8 8 See Ekspertgruppen om udredningen af den aktive beskæftigelsesindsats (2015): Delrapportering: integrationsindsatsen for nyankomne flygtninge og familiesammenførte udlændinge, København, p. 8 April,

9 3 Do (a) asylum seekers, (b) refugees and (c) other thirdcountry migrants have access to other ALMPs such as: Hiring subsidies Start-up (self-employment) support On-the-job training Other labour market integration support? (a) Asylum seekers Asylum seekers have access to take up work or traineeships outside the asylum centre under certain conditions (cf. the answer to Q1). However they will not get support from the local PES (jobcentre) and will not qualify for any wage subsidies. (b) Refugees During and after the integration programme, refugees will have access to the normal support from the local jobcentres including measures like hiring subsidies, on-the-job training (traineeships) and counselling. According to data from the Danish National Labour Market Authority (jobindsats.dk) about 29 % of those activated in the integration programme took part in an employment-oriented activity (mostly unpaid traineeships). The remainder received offers in the category of counselling and unspecified upgrading of skills, while very few took part in formal education. Table 2 gives an overview of developments since Since an individual may participate in more than one measure in a given year, the total exceeds the number of participants in the integration programme, cf. table 1 above. Table 2: Number of participants in the integration programme by year and measures applied. Source jobindsats.dk. Number of persons in activation Formal education Other activities (counselling etc.) Wage subsidies Traineeships Total Start-up support for self-employment is not used within Danish active labour market policy. (c) Other third-country migrants 9 Other third-country migrants with a valid work-permit will, if they cannot support themselves economically, have access to the normal offers from the local job-centre. 9 For an overview of the access of foreigners to Danish social assistance and other services, see Udvalg om Udlændinges ret til velfærdsydelser (2011): Rapport om Optjeningsprincipper i forhold til danske velfærdsydelser, Beskæftigelsesministeriet, København April,

10 4 What are the concrete obstacles/challenges faced by (a) asylum seekers and (b) refugees in successfully integrating into the labour market? (a) Asylum seekers For asylum seekers one can point to two sorts of major obstacles. Firstly, some obstacles are related to the vulnerable situation of the asylum seekers themselves. When they are newly arrived, they face high barriers with respect to both language skills, social skills and cultural skills. Also the qualifications which they bring from the home country can be difficult to apply in the new setting. In addition they may suffer from post-traumatic stress disorder (PTSD) due to their experiences both in the home country and during their travel to Denmark. Finally, they face the uncertainty of still not knowing whether they will eventually receive the permit to stay and work in Denmark as refugees. Secondly, as described in the answer to Q3, asylum seekers receive very little assistance from the authorities when it comes to labour market integration. The rationale is of course that such efforts should wait, until one is certain that the asylum seekers will actually more permanently stay in Denmark as refugees. The risk is that the asylum seekers' skills and motivation deteriorate even further during their stay in the asylum centre. (b) Refugees After having received refugee status, the integration programme aims at integrating refugees into the labour market, perhaps after having received relevant education and training, cf. the answer to Q1. As a general observation, it is well known that migrants, especially those from non- Western countries, face high barriers on the Danish labour market. In 2013 male and female non-western migrant employment rates are 53 % and 43 %. In comparison, the employment rate among persons of Danish origin is 75 % for men in 2013 and 72 % for women. These differences have been of the same magnitude for the last twenty years. 10 As a reflection of the low employment rates, migrants from non-western countries are overrepresented among recipients of cash benefits and other forms of social assistance. 11 Migrants from non-western countries are particularly overrepresented among recipients of cash benefits, where they constitute 21 % of the unemployed and 33 % of the other recipients of cash benefits. Among recipients of disability pension they constitute 13 % compared with 7 % of the working age population. Also the integration programme has produced rather meagre results. Four years after entering the programme, only 34 % of the participants are in employment or education. The shares are 30 % for women and 37 % for men, and decline with age. The difference between participants with a background as refugees and as family-reunified is minor. On the other hand there are rather large differences between nationalities. The highest integration barriers seem to be faced by participants from Syria and Somalia. 12 Concerning the barriers faced by refugees and other people with a non-danish background, the available literature points to a number of obstacles to their labour market integration: Se Danmarks Statistik (2015): Indvandrere i Danmark 2015, København, p See Ekspertgruppen om udredning af den aktive beskæftigelsesindsats (2015): Nye veje mod job for borgere i udkanten af arbejdsmarkedet, Beskæftigelsesministeriet, København, p See Ekspertgruppen om udredningen af den aktive beskæftigelsesindsats (2015): Delrapportering: integrationsindsatsen for nyankomne flygtninge og familiesammenførte udlændinge, København, p See for instance: K a r e n m a r g r e t h e d a h l and v i b e k e j a k o b s e n (2005): KØN, ETNICITETOG BARRIERER FOR INTEGRATION, Det Nationale Forskningscenter for April,

11 Lack of language skills, Difficulties in getting recognition for formal or informal qualifications from the home country, Lack of social and cultural skills, Discrimination, Gender-related norms among the migrants, The concentration of ethnic minorities in isolated communities ( ghettoes ). Finally it has been noticed that migrants including refugees receive fewer workplacerelated offers than others. For the group of non-western migrants, there are several studies on the impact of various employment and training targeted efforts, which show that workplace-targeted efforts on average have the best results. However, among refugees and family reunified participants in the integration programme, the workplacebased measures are the least used. In addition, the integration programme has not been part of recent employment reforms. Therefore, it lacks the tools that have come with the reforms, such as the introduction of a coordinating social worker Is there a systematic mentorship scheme in place for (a) asylum seekers and (b) refugees integrating into the labour market (and/or society more generally)? (a) Asylum seekers For asylum seekers there are no general public mentorship schemes in place. If mentoring takes place, it will be initiated by NGOs and offered by local volunteers (organised for instance by the Danish Red Cross). (b) Refugees Mentorship schemes are one of the standard tools of Danish active labour market and social policy. A mentor will be offered, if the jobcentre finds it to be relevant on a caseby-case basis. The job centre may grant a mentor to give personal, social and practical support in connection with virtually all forms of employment promoting activities, as long as it is deemed that the help of the mentor is crucial in order to obtain or retain employment. 15 The number of hours of support that may be granted depends on an individual assessment of the needs and abilities of the person. The aid can, with a few exceptions, be granted for a maximum of six months, with the possibility of extension. There are no rules on how many hours of support may be conceded. According to the databank of the Ministry of Employment (jobindsats.dk), the share of recipients of cash benefits who had an individual mentor in 2014 was the same for persons of Danish origin and for migrants of non-western origin (14 %). It is not possible to distinguish between refugees and other migrants of non-western origin within the data. In addition to the mentor scheme of the jobcentres, various NGOs provide mentorships for refugees. 16 The extent of these activities cannot be assessed on the basis of available sources. Velfærd, København, and Vibeke Jakobsen and A. liversage (2010): Køn og etnicitet i uddannelsessystemet. Litteraturstudier og registerdata, Det Nationale Forskningscenter for Velfærd 10:29, København. 14 See Ekspertgruppen om udredningen af den aktive beskæftigelsesindsats (2015): Delrapportering: integrationsindsatsen for nyankomne flygtninge og familiesammenførte udlændinge, København, p See 16 See for instance April,

12 6 Are (a) refugees and (b) (if applicable) asylum seekers eligible to receive unemployment benefits or unemployment assistance? 17 (a) Asylum seekers Asylum seekers are not eligible for unemployment benefits or cash benefits (unemployment assistance). An asylum seeker living in Denmark will usually have the cost of his/her stay covered by the Danish Immigration Service. However, this does not apply if the applicant is married to a person who has permanent residence in Denmark. In that case, the spouse is obliged to support the applicant. The Danish Immigration Service s support to asylum seekers includes: 18 Cash allowances for clothing, hygiene items, etc. and food, if the asylum seeker is not staying at a centre with a cafeteria (with free meals). In addition the asylum seeker can receive a supplementary benefit, if he/she fulfils the demand for activation specified in the individual contract with the asylum centre, cf. the answer to Q7 below. Asylum seekers with children receive extra benefits for up to four children. Necessary healthcare Education of children Education and activation of adult asylum seekers Accommodation in an asylum centre. Transportation to and from conversations with authorities, hospitals, etc. (b) Refugees While in the integration programme, refugees receive a special cash benefit (the integration allowance), which is lower than the usual cash benefit. For single persons and couples without children the level is half the level of normal cash benefits. The lower integration allowance was introduced on September 1, 2015, for persons entering the integration programme after that date. 19 If the refugee gets a non-subsidised job, he or she can join an unemployment insurance fund on the normal conditions. This implies that that the refugee becomes eligible for unemployment benefits after one year s membership, if he or she has been employed for more than one year within the last three years. Special rules apply for graduates, who are eligible for unemployment benefits immediately after graduation, if they have been a member of an unemployment insurance fund during their last year of study. The benefit level is however reduced to 82 % of the normal amount (2015) 7 In what ways are benefits that are generally received by (a) refugees and (b) by asylum seekers (if applicable), conditional on job search requirements/activation? (a) Asylum seekers While in the asylum centre, asylum seekers are activated with tasks related to the dayto-day running of the centre, cf. the answer to Q1. Asylum seekers aged over 18 will have to make a contract with the asylum centre to which he or she is affiliated. The contract specifies which activation and teaching activities the asylum seeker must participate in and what practical tasks he or she should perform at the asylum centre. 17 In regard to unemployment benefits, Directive 2011/98 Art 12 (1) obliges MSs to provide equal treatment to all TCNs except asylum seekers and in regard to refugees there is also the legal obligation to provide equal treatment under Qualifications Directive 2011/ See 19 See April,

13 If the asylum seeker complies with the contract with the centre, he or she will receive an extra activation benefit equivalent to EUR 4 per day. 20 If the asylum seeker does not comply with the contract with the centre, the asylum centre will reduce or eliminate this supplementary benefit. (b) Refugees While taking part in the integration programme, the refugee must take part in full-time activation (cf. the answer to Q1). After having left the integration programme the refugee becomes subject to the normal conditions for receiving cash benefits or unemployment benefits for a member of an unemployment insurance fund. This will imply requirements for active job-search and participation in regular mandatory counselling and activation arranged by the jobcentre. If the refugee does not comply with the requirements of the jobcentre, he/she will be subject to economic sanctions, if there is no valid reason (like illness or lack of access to childcare). There are three types of economic sanctions for recipients of cash benefits: 21 Period sanctions, where the person receives no benefits for the days where he/she does not fulfil the duty to be available, for example by not having a valid reason for failing to be present at an interview or an activation offer. Point sanctions, where the benefit is reduced by a certain amount, if the person rejects a job offer without a valid cause. Termination of the benefit, if the person declines an offer without reasonable cause or has repeated absences from an offer, which can be equated with that person declining the offer. In % of the participants in the integration programme received a sanction, mostly period sanctions due to not showing up for an active offer. For those sanctioned, the average number of sanctions was 2.8 (according to jobindsats.dk) 8 Does the support provided to the (a) asylum seekers, (b) refugees and (c) other migrants end as soon as they get a job or does it continue for a while during the first phase of their employment? If yes, what support continues? (a) Asylum seekers Since the asylum seekers receive no support from the jobcentre, the only support can be from the volunteers of an NGO. (b) Refugees As described in the answer to Q3 the refugees will both during and after the integration programme have access to the usual instruments of ALMP offered by the municipality (jobcentre). If employed with a wage subsidy or as an unpaid trainee the jobcentre will stay in contact with the participant and the employer. Also a mentor may be available, from the jobcentre or located at the work-place, cf. the answer to question Q5. If the refugee enters an ordinary job, the support from the jobcentre will normally terminate. However a mentor may also be given to persons in ordinary employment, if it is assessed by the jobcentre as necessary to further support the refugee. (c) Other migrants See Ekspertgruppen om udredning af den aktive beskæftigelsesindsats (2015): Nye veje mod job for borgere i udkanten af arbejdsmarkedet, Beskæftigelsesministeriet, København, pp April,

14 The same rules will apply as for refugees. 9 To what extent are social partners systematically involved in (a) labour market integration service provision and/or (b) labour market integration service/policy definition and design? (a) Labour market integration service provision The responsibility for services related to labour market integration of refugees and migrants lies with the municipality (jobcentre). In these activities the social partners at the local level will be part of the informal network of the jobcentres, but there are no general rules regulating this. Some municipalities have established more formal bodies, where local social partners and other local actors meet to discuss matters related to labour market policy including integration of ethnic minorities. (b) Labour market integration service/policy definition and design In the Danish context, the social partners are generally highly involved in the definition and design of active labour market policy, including policies to support labour market integration. This goes all the way from the preparation of reforms and legislation to the different stages of policy implementation As already mentioned, the institutions that are responsible for delivering employment services at the local level are the jobcentres, which are under the auspices of the municipalities. Their work is both monitored and supported by the eight labour market regions and at the national level by the Danish Agency for Labour Market and Recruitment. At both the national and the regional level there are tripartite bodies with representatives from the social partners and public authorities. Finally, with respect to other actors involved in designing integration policies it should be mentioned that the Law on Integration makes it possible for all municipalities to establish a local Council for Integration. The council advises the municipality in relation to all the local integration efforts and not solely with respect to labour market integration. It will mainly be composed of representatives from NGOs working with ethnic integration issues To what extent is the labour market integration of refugees well-coordinated within the country? Do employment agencies and asylum authorities coordinate? In general terms the labour market integration of refugees is well coordinated in the sense that the activities are integrated into the overall implementation of labour market policy as described in the answer to Q1. However, as exemplified for instance by the special report on integration from the Koch-committee, a number of challenges can be identified, when it comes to the integration programme. 23 : For the group of non-western migrants there are several studies on the impact of various employment and training targeted efforts, which shows that the employment-related efforts like wage subsidies and traineeships on average are the most effective. However, among refugees and family reunified benefit recipients in the integration programme, the work-related offers are the least used. 22 See Bekendtgørelse af lov om integration af udlændinge i Danmark (integrationsloven). LBK nr 1094 af 07/10/ See Ekspertgruppen om udredningen af den aktive beskæftigelsesindsats (2015): Delrapportering: integrationsindsatsen for nyankomne flygtninge og familiesammenførte udlændinge, København, pp April,

15 The integration programme has not been part of recent reforms on employment. Therefore, the participants in the integration programme are not offered the basic assistance that is part of the reforms such as a coordinating social worker. The current integration programme which has duration of up to three years is in some cases used in ways that can offer foreigners courses that do not necessarily provide quickest route to employment, self-reliance and active citizenship. Newly-arrived refugees and people who have been re-united with their family constitute a complex target group. The wide variation in who and how many enter the rehabilitation programme each year, and in the skills and challenges they have, puts great demands on the flexibility of its operations, as well as on the municipalities ability to plan and carry out employment initiatives, which requires the necessary skills to make the right efforts. The relatively heterogeneous group of foreigners requires municipal administrators, as soon as possible after arrival, to get a good overview of the individual newcomer resources, skills and health conditions in order to assess which interventions are relevant to the individual, and when the various interventions should be initiated. It is a challenge to maintain the continuity of activities and a focus on the individual, when there is a transition from the integration programme to the normal services of the jobcentre. Concerning the coordination between the asylum authorities and the activities of the local jobcentres, this is well defined by existing regulations. The main issue here is related to the rather mechanical procedure of allocating the refugees across the individual municipalities after they have been granted asylum. Here arguments have been raised that the allocation should also include the demand side of the local labour market in order to improve the chances of integrating the refugees into employment. Finally it should be mentioned that tripartite discussions between the Government and the social partners in March 2016 resulted in an agreement, which addresses a number of the weaknesses of the present integration efforts. 24 The agreement included 32 initiatives that range widely and ensure that efforts for refugees and family reunified begins earlier and more frequently takes place at the workplaces. Central to the agreement is a new two-year integration training programme, which makes it possible that more refugees will get a foothold on the Danish labour market, even if they do not from day one meet the Danish language requirements and receive a normal wage according to collective agreements. Instead they will receive a lower wage similar to Danish trainees taking part in vocational education. 24 See April,

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