Ukrainian Refugees Still Face Deep Economic Struggles Despite Job Gains

The report identifies a troubling trend of widespread underemployment and job-skills mismatches, which prevent many refugees from reaching their full economic potential.

A new inter-agency report has painted a sobering picture of the ongoing economic difficulties faced by Ukrainian refugees in ten neighbouring countries, despite measurable improvements in employment and income levels over the past year. While employment rates among refugees have improved and are now approaching those of host country populations, the report warns that deeper systemic issues continue to threaten the long-term economic stability and wellbeing of this displaced community.

Poverty Persists Despite Income Growth

One of the most striking findings from the report is that 40 per cent of Ukrainian refugees continue to live below the poverty line, when adjusted for housing costs. This is particularly troubling given that refugee wages have increased by 28 per cent over the past year, suggesting that the cost of living—especially rent and basic utilities—remains disproportionately high for refugees compared to host communities.

“This is not just about job creation; it’s about job quality and affordability of life,” said David Mosler, Crisis Policy and Data Analyst at the International Labour Organization (ILO) and co-author of the report. “Economic integration is not complete if basic needs like secure housing and access to healthcare remain out of reach.”

Underemployment and Skill Mismatches Limit Progress

The report identifies a troubling trend of widespread underemployment and job-skills mismatches, which prevent many refugees from reaching their full economic potential. Around 60 per cent of employed Ukrainian refugees are working in sectors unrelated to their prior experience, with limited wage differentiation based on educational attainment.

The data shows that refugees with higher education receive only a 16 per cent wage premium, compared to a 78 per cent premium for similarly educated members of host populations. This indicates a significant underutilization of the refugee workforce, many of whom previously held skilled or professional roles in Ukraine.

“This highly educated and resilient population represents a massive economic opportunity, both for the refugees themselves and their host nations,” said Mosler. “But right now, we’re seeing a failure to match skills with roles, which hurts everyone.”

Daily Hardships and Vulnerable Groups

The financial instability faced by many refugees is having a direct impact on their physical and emotional wellbeing. Many report feeling unsafe in their housing situations, being unable to access consistent healthcare, and struggling to meet basic needs like food and transportation.

The situation is especially dire for older refugees and people with disabilities, who face the greatest challenges in entering the labour market and accessing support services. These groups often encounter both physical and systemic barriers that severely limit their ability to achieve independence or secure employment.

Gendered Impacts and the Need for Flexibility

The report also highlights the disproportionate burden carried by refugee women, many of whom face childcare responsibilities and cultural barriers that restrict their access to the labour market. Female refugees are more likely to be unemployed or employed in low-paying, inflexible jobs.

To address this, the report urges governments and aid organizations to offer more flexible work arrangements, such as remote jobs, part-time options, and sliding work hours, to help refugee women balance caregiving duties with economic participation.

Recommendations for Policy and Support

The report concludes with a call to action for governments, development agencies, and humanitarian organizations. It recommends a multi-faceted approach to support Ukrainian refugees, with an emphasis on:

• Designing targeted poverty alleviation programs that factor in regional disparities in housing and living costs.

• Expanding job placement and training services that connect refugees with roles aligned to their skills and qualifications.

• Addressing systemic barriers to healthcare and social services for vulnerable populations, including older adults and people with disabilities.

• Promoting gender-sensitive policies, including subsidized childcare and flexible work opportunities.

A Call for Long-Term Solutions

As the international community continues to mobilize support for Ukrainian refugees displaced by the war, the report urges a shift in focus: from emergency relief and basic employment to sustainable integration, economic empowerment, and dignity.

“Employment numbers alone are not enough,” Mosler emphasized. “We must ensure that the jobs available to refugees are not only plentiful but meaningful, fairly paid, and supportive of a long-term future.”

With war still raging and millions of Ukrainians remaining in exile, the findings underscore the importance of moving beyond temporary solutions and building inclusive, long-term economic pathways for refugee populations in Europe and beyond.