A new report by the German Institute for Economic Research (DIW) has revealed that many refugees living in Germany remain at risk of poverty, despite signs of gradual improvement in recent years.

In 2022, 63.7% of refugees in Germany were classified as being at risk of poverty — meaning their income fell below 60% of the national median household income. The threshold for a single person was €1,419 per month. While still high, this marks a small but positive decline from nearly 70% in 2020.

Refugees make up about 4% of Germany’s total population, yet continue to experience significantly higher poverty rates than the general population.

Employment Integration Slowly Reducing Poverty

The DIW study attributes the improvement to better labor market integration. Since 2016, more refugees have entered regular employment, particularly in logistics, healthcare, hospitality, and skilled trades.

According to DIW researcher Markus Grabka, this increased employment is the primary reason behind the gradual decline in the poverty risk rate among refugees.

However, the report emphasizes that language barriers, delays in recognizing foreign qualifications, and periods of unemployment continue to limit access to higher-paying jobs.

Gender Inequality Worsens Poverty Risks

The study highlights that refugee women and single mothers face a much greater risk of poverty.
Households without any employed members have a poverty rate above 70%, while households with two earners fall below 6%.

Despite being in Germany for nearly a decade, many female refugees remain out of the workforce due to childcare shortages, part-time work, and language barriers.

Rising living costs and high inflation since 2021 have further eroded purchasing power, widening the income gap between refugee women and the rest of the population.

Structural Challenges and Social Impact

The DIW warns against viewing poverty solely as an individual issue.
Structural factors — such as labor market access, local job availability, and regional refugee distribution — strongly influence income inequality.

Social organizations are calling for greater investment in:

• Language and vocational training

• Recognition of foreign qualifications

• Targeted job placement and childcare support

These steps, experts say, are crucial for helping refugees achieve economic independence and long-term social inclusion.

A Decade After 2015: Integration Shows Results

Ten years after the large-scale arrival of refugees in Germany, the DIW report suggests that integration efforts are starting to pay off. While many remain in low-income brackets, the overall trend is slowly improving.

Researchers view the progress as a positive signal — showing that sustained policy efforts in employment and education can lead to both social and economic gains for refugees and German society as a whole.