ifo Migration Monitor: Current Migration Developments and the Labour Market Participation of Migrants

The year 2015 saw the highest influx of foreign immigrants into Germany (even after deductions due to re-departures) since the German Federal Statistics Office started recording migration figures. Prior to 2015 EU citizens accounted for the largest group of immigrants, but since 2015 non-EU citizens have been in the majority. Monitoring of the labour market participation of foreign citizens since 2010 reveals that the number of migrants in jobs subject to social security contributions has risen across all migrant groups since 2010, both in absolute terms and among their working age populations – with the sharpest increases seen among citizens of the new EU countries in Eastern Europe. Data from the German Federal Employment Agency also show that the unemployment rate of migrant groups – with the exception of citizens of non-EU countries of origin – has fallen steadily since 2010. All migrant groups in the German labour market nevertheless perform more poorly than German citizens in terms of both participation and unemployment rates. In qualitative terms like, for example, job requirements, temporary employment and when income earned is complemented by basic unemployment insurance benefits, figures are far higher among immigrants than among Germans. The quantitatively and qualitatively weaker participation of foreign employees in the German labour market is chiefly due to their qualification level, profession and the market’s employment structure.