1. THE ECONOMIC DIMENSIONS OF THE MIGRATION CRISIS Jean-Christophe Dumont Head of the International Migration Division, Directorate for Employment, Labour and Social Affairs OECD

2. Recent asylum application trends in Europe

3. Unprecedented but still uncertain numbers Evolution of number of new asylum seekers, 1980-2015 Source: UNHCR, Eurostat, OECD calculations Asylum applications are recorded with a lag compared to entries and may include some double counts. In 2015, the early registration system in Germany (EASY) recorded over 1 million entrances, including 200k in November and 130k in December (respectively 58k and 47k in the Eurostat data). 4.8 million refugees in neighbouring countries of Syria including 2.7 million in Turkey, 1.07 in Lebanon and 640k in Jordan.

4. 2016: continuing but decreasing entries Source: UNHCR.

5. Diversity of origin countries Source: Eurostat. 2013 EU28 Total = 370 000 2014 EU28 Total = 560 000 2015 EU28 Total = 1 260 000

6. Recent trends are dominated by 3 nationalities Source: UNHCR, Eurostat, OECD calculations

7. In per-capita terms, Sweden, Austria and Germany have received the highest number of asylum seekers in 2015 New asylum seekers per million population in selected OECD countries Source: UNHCR, OECD calculations 18k 16k The total inflow in 2015 represents about 0.3% of Europe’s population.

8. Multiple unsettled crises Several conflicts/crises in parallel with little prospect for improvement in the near future => Persisting and looming geopolitical crises Strong concentration of asylum seekers in just a handful of entry points and destination countries which fuels anxiety and raises the issue of burden sharing; Large unmet needs for supporting refugees globally => A solidarity and coordination crisis Key building blocks of the European migration & asylum framework are challenged (e.g. Schengen, Dublin) and mutual trust within the EU is undermined; => Risks of an institutional crisis Welcoming and integration systems are under strong pressure and concerns regarding the integration of refugees and their children are at the highest=> A forthcoming integration crisis?

9. How will the refugee surge affect the European Economy ?

10. Germany spent up to 8 billion euros in 2015 and has projected an additional 0.5% of GDP per annum of public spending in 2016 and 2017 to meet initial needs of the newly arrived immigrants and to integrate them in the labour market Austria has announced an additional 0.3% of GDP in 2016 and Sweden 0.9% of GDP in 2016. Since 2011, the Turkish government has provided aid to Syrian refugees amounting to 0.8% of 2014 GDP ($US 7 billion) The European Commission has announced additional funding of €9.2 billion to address the refugee crisis over 2015-16 (0.1% of EU GDP). In the short run the additional public spending may act as a demand stimulus. The November 2015 edition of the OECD Economic Outlook estimates that in 2016 and 2017, the additional spending to provide support on refugees could boost aggregate demand in the European economy by about 0.1-0.2% of GDP. Short/medium term direct fiscal costs

11. Labour market entries will be very progressive and relatively small for most countries Under the low (high) scenario, the cumulative impact of the asylum seekers inflow by the end 2016 is estimated to –less than 700K (one million) entries in the EEA & Switzerland labour market by end 2016, corresponding to 0.3% (0.4%) of labour force. –less than 300K (400k) in Germany or 0.7% (1%) of the total labour force 2. Simulated labour market impact of the refugee inflow in the EEA and Germany Estimated cumulative entries in the labour market due to refugees who have arrived since January 2014 Observed and anticipated asylum seeker inflows in German and the rest of the European Economic Area plus Switzerland Source: OECD (2015) Migration Policy Debate n°8

12. I.Between countries → European Instruments (payment and reception of funding according to quotas) II.Within countries → Reimbursement of local costs III.Between stakeholders → Private sponsorship IV.Between different points of time → Integration as an investment “Financial burden sharing”

13. Fostering the economic and social integration of refugees and their chidlren

14. Labour market integration takes time Employment rate by immigrant categories and duration of stay in European OECD countries, 2008 Employment rate of humanitarian migrants in selected EU countries, 2014

15. Education level of immigrants aged 25-64 in Sweden by latest country of residence, 2015 Strong diversity of qualification levels within and between refugees groups Source: Statistics Sweden, 2016

16. Vulnerable group requiring specific (and often expensive) support Many arrive with little prior tuition at the end of obligatory schooling Evolution of the number of unaccompanied minors in EU+, Sweden, Austria, and Norway 2008 – 2015 Sources: EASO, Statistics Sweden, Federal Austrian Ministry of the Interior, Norwegian Directorate of Immigration Increasing numbers of unacccompanied minors >>> 85000 in 2015

17. Conclusion: Integration as an investm ent 17 The vast majority of the foreign-born and their offspring are in employment… …But much potential remains unused – especially of refugees Especially for low-educated refugees, ensuring long-term employability and integration entails large costs - and here integration must be viewed as an investment:  Focus on early intervention (for new arrivals and for children)  Pursue policies where the pay-off is not immediate (unemployed or inactive; women with children; very low-educated refugees)  Make access to integration offers dependent on settlement prospects and needs  Ensure a fair access to support services throughout the country, working with local authorities and non-state actors;

18. For further information: www.oecd.org/migration www.oecd.org/migration jean-christophe.dumont@oecd.org 18/11 Thank you for your attention