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Regional Refugee Response Plan for the Ukraine Situation - High employment rates, but low wages: a poverty assessment of Ukrainian refugees in neighboring countries - March 2025

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Summary of findings and recommendations

The 2024 round of the SEIS survey indicates that while the financial vulnerability of refugees from Ukraine residing in neighboring countries - specifically those included in the Regional Refugee Response Plan - has declined over the past year, one in five still live with an income below the poverty line. When factoring in the disproportionately high accommodation costs refugees face, largely due to the region’s high homeownership rates among locals, the poverty rate rises to 40%, more than three times that of host communities.

The data also shows that poverty has a very tangible effect on living conditions and protection risks. This group feel less safe, less secure in term of accommodation tenure, more frequently misses out on needed healthcare, more often has children out of school, and is much more frequently forced to resort to skipping meals because of lack of funds. In addition, vulnerable populations, such as older adults and individuals with disabilities or MHPSS6 needs exhibit significantly higher poverty rates when compared to the refugees overall. These connections are important to bear in mind when designing government, development, and humanitarian support programs.

Employment continues to be closely associated with lower poverty rates, though ultimately, it’s the size of income that is generated by working household members that makes the biggest difference. Considering that the share of working-age refugees that are employed is nearing host population levels after rising further in 2024, attention should now turn to wages. Data on the latter, which was derived from household level indicators, demonstrates that refugees on average make half of what the local population does per hour of work. Low wage premiums for higher education levels and the fact that some 60% of current refugee employees have a background in an entirely different sector of the economy, suggest the presence of underemployment and skills mismatching. This assertion is corroborated by nearly 35% of employed refugees in the region reporting few available jobs with adequate pay, lack of positions that match their skills, or issues with getting their qualifications recognized. Moreover, almost the same percentage indicate lack of local language knowledge to be a problem, a well-acknowledged barrier to skilled employment.

Based on the above findings it is recommended that:

  • Governments, development and humanitarian actors take into account poverty levels when designing their support programs for Ukrainian refugees. The quality of day to day life, safety, and level of access to key services are directly tied to household income.
  • Poverty measures account for differences in housing costs between refugees and host populations.
  • A special focus is placed on supporting refugee employment at their skill level, including transition from current low-level jobs. The difference between refugee and local population wages could be an important metric to monitor on an ongoing basis.