Some 57% of Ukrainians employed in Europe: ahead – Estonia and Hungary, behind – Switzerland and Norway – UN

The average employment rate of Ukrainian refugees aged 20-64 in European countries as of mid-2025 was 57%, including self-employment and informal work, which is 22 percentage points (p.p.) lower than the comparable indicator for citizens of the host country, according to a UNHCR survey on the integration of Ukrainian refugees into the labor market.

"Outcomes vary considerably: countries bordering Ukraine tend to record the highest employment rates, while Western European and Nordic countries show markedly lower levels—even after accounting for differences in refugees’ profiles," the document, based on responses from 6,817 participants, notes that 3% of people aged 20-64 (or 5% of those employed) are self-employed or entrepreneurs.

It highlights that proficiency in the local language is one of the strongest predictors of employment, and a longer stay in the host country is also associated with better labor market outcomes.

According to the data, Estonia and Hungary lead in employment rates at 72% and 71%, followed by the United Kingdom (69%), Poland (68%), Bulgaria (67%), the Czech Republic (66%), and the Netherlands (64%).

Countries with near-average results include Spain (61%), Italy (58%), Lithuania (57%), France (53%), Romania (50%), and Moldova, Ireland, and Belgium (46% each).

Employment rates among Ukrainian refugees are significantly lower in Sweden (43%), Finland (40%), Denmark and Germany (39% each), Norway (37%), and Switzerland (29%).

"However, underemployment remains pervasive. Nearly 60% of employed refugees report working below their skill level, and they are almost twice as likely as nationals to be in low-skilled jobs," the report notes.

Among refugees with higher education, more than one-third work in low-skilled jobs, compared with 7% of citizens in the host countries. Researchers say this skills mismatch is likely the main reason for 40% of the median wage gap between refugees and the local population.

The report also notes that, unlike overall employment rates, underemployment does not improve significantly over time when accounting for language, industry continuity, education, and labor market barriers, indicating the presence of structural obstacles that require targeted intervention.

According to UNHCR, reducing gaps in employment and labor productivity could yield substantial macroeconomic benefits. Achieving average national levels could boost annual GDP growth by up to 0.7 percentage points in some countries, particularly where refugee populations are large and productivity gaps are significant.

Other findings from the study indicate that adults aged 50–64 have roughly a 10 percentage point lower probability of employment compared with younger individuals. Men are 7 percentage points more likely to be employed than women. Holding a vocational-technical diploma increases employment likelihood by about 5 percentage points compared with those with only secondary education, while higher degrees provide only limited additional benefits—around 10 percentage points overall—with little difference between bachelor’s and master’s degrees.

Living with young children under age six reduces the probability of employment by 11 percentage points, consistent with other research identifying childcare constraints as a major barrier.

At the same time, living alone increases employment probability by 8 percentage points.

Unexpectedly, living with older adults (65+) is associated with a 6 percentage point increase in employment likelihood, suggesting that most elderly individuals may not require intensive household care and may instead provide support with domestic tasks.

Regarding language, respondents who report at least some knowledge of the local language have a 13 percentage point higher chance of employment than those with no or minimal knowledge. Interestingly, higher levels of language proficiency do not appear to confer additional benefits, suggesting that the types of jobs available to Ukrainian refugees—mostly low-skilled—may not require advanced language skills.

The study also notes a clear link between employment probability and time since arrival. While there is little difference for those arriving within the past six months compared with one year, employment likelihood rises 10 percentage points for those who arrived 1-2 years ago, 14 points for 2-3 years ago, and 20 points for arrivals over three years ago.

According to updated UNHCR data, the number of Ukrainian refugees in Europe was estimated at 5.349 million as of January 16, 2026 (up from 5.311 million on December 11), and globally at 5.898 million (up from 5.860 million).

Within Ukraine, the latest UN figures show 3.7 million internally displaced persons (IDPs) at the end of 2025, compared with 3.34 million in July and 3.76 million in April.