By Shirin Pakfar, Chief of Private Partnerships and Philanthropy at UNHCR
High Commissioner Filippo Grandi meets with Jesper Brodin, CEO of Ingka Group; Tolga Öncü, Ingka Retail Manager; and IKEA co-workers with refugee backgrounds. © Ingka Group
When people think about refugees, misconceptions often arise about who they are, where they come from, and why they leave. Refugees are men, women, and children forced to abandon everything due to war, violence, and persecution, seeking safety in a new country. From the start of their journeys, they frequently face negative stereotypes. But what if we could change this narrative? What if, instead of viewing refugees solely as individuals in need, we recognized them as the talented, skilled, and resilient people they are? What if we acknowledged the meaningful contributions they make to the communities that welcome them?
At UNHCR, the UN Refugee Agency, our vision is a world where every person forced to flee can build a better future. We collaborate with partners across the public and private sectors to develop new ways for refugees to be both economically and socially included, enabling them to contribute to their host communities.
A trailblazing example of this is our partnership with Ingka Group (IKEA). Since 2019, Ingka Group has supported 3,700 refugees in developing the skills they need to integrate into the workforce. With UNHCR’s support, Ingka has also created the Skills for Employment toolkit, which shares their experience and lessons learned to inspire other businesses to act. They have engaged with more than 700 other businesses to help integrate more refugees into their workplaces. And they aren’t stopping there: they’ve committed to supporting 3,000 more by 2027.
These are not just numbers; they represent real people and real lives transformed through work, dignity, and economic inclusion.
The economic case for refugee inclusion
Europe is facing a labour shortage. Between 2009 and 2023, the EU’s working-age population dropped from 272 million to 263 million, and projections indicate a further decline to 236 million by 2050.
Refugees can help bridge this gap. Many arrive with high levels of education and professional experience but face administrative, cultural, and legal barriers preventing them from entering the workforce. When given the right support, they thrive – and so do the businesses that employ them.
In Germany, 68% of surveyed companies reported that hiring refugees improved overall employee engagement, according to research by the Tent Partnership for Refugees. A study conducted by UNHCR in Mexico found that refugee employees had a monthly staff turnover rate of just 0.9% in the industrial sector, significantly lower than the industry average of 6%. These figures are not anomalies. Studies consistently show that hiring refugees leads to increased employee engagement, enhanced workplace culture, and improved business performance.
Refugees as a competitive advantage
Beyond addressing labour shortages, hiring refugees provides businesses with a unique competitive advantage. A diverse workforce fosters innovation, enhances problem-solving, and expands market reach. Research by McKinsey & Company shows that companies with higher levels of ethnic diversity outperform their competitors by 35% in profitability and 37% in innovation. Furthermore, consumers increasingly favour brands that support refugee inclusion. A recent survey by Tent found that European customers are more likely to buy from brands that hire refugees.
Yet too many businesses hesitate, fearing complexity and red tape. The reality is that the benefits far outweigh the perceived challenges and initial investment. With strategic partnerships and the right frameworks in place, including refugees in the workforce is not just possible – it’s profitable and transformative.
Changing the narrative
For too long, the conversation around refugees has been framed by burden rather than opportunity. It is time to shift the focus. Refugees are not only seeking safety; they are seeking purpose. They do not want handouts; they want jobs. They do not weaken communities; they strengthen them.
The private sector has a pivotal role to play in this transformation. Governments can set policies, and non-profits can provide support, but businesses have the power to hire, train, and invest. Ingka Group and UNHCR are proving that when businesses step up, everyone benefits. Our partnership is helping to shift perceptions and create pathways for thousands of refugees to rebuild their lives with dignity and independence.
But we cannot do it alone.
A call to action
The success stories we have seen so far are just the beginning. To truly create an inclusive labour market, more businesses need to step forward. CEOs, HR leaders, and policymakers must move beyond words and take action.
Here’s how:
- Hire refugees. Look beyond refugee status. Many skills are transferable, and talent often shines brightest when given the right environment to grow.
- Invest in training. Language barriers, cultural adjustments, and skill certification take time. Support refugees in developing the tools they need to succeed.
- Change the conversation. Be an advocate. Challenge stereotypes, highlight success stories, and show that hiring refugees is not charity – it’s smart business.
- Partner for impact. Work with organisations like UNHCR and leverage initiatives like Ingka’s Skills for Employment toolkit to create structured pathways to employment.
This is not just about corporate responsibility. It is about economic growth, social cohesion, and building a workforce equipped for the future.
The private sector has a unique opportunity to reshape the narrative around refugees and, in doing so, reshape the future of the global economy for the better.
Now is the time to step up.
We are, after all, better together.