Refugees and immigrants contribute more than they cost, UNHCR says
Venezuelans Nehomar Alonso Diaz Martinez (left) and Santiago Abraham take part in professional training in Manaus
Alef Kaf/Acnur
The presence of refugees and immigrants in the Brazilian labor market generates more benefits than the costs of welcoming them when they first arrive in the country. This is according to the study “Economic and Social Impacts of the Inclusion and Hiring of Refugees and Migrants in Brazil,” conducted by the United Nations High Commissioner for Refugees (UNHCR) together with the Center for Regional Development and Planning at the School of Economics of the Federal University of Minas Gerais (Cedeplar/UFMG), with support from the UN Global Compact.
According to the survey, based on official data from 2018 to 2024, the workforce comprising refugees and immigrants in Brazil paid more than R$17 billion in taxes and contributions, with 275,000 people in formal employment in 2024 alone. At the same time, on the public-cost side, the impact was less than 3% of social-assistance spending in the municipalities studied, even in the worst-case scenario.
The study also analyzed the productivity potential of workers who arrived in the country as refugees or immigrants and found that they tend to match Brazilian workers within a short period of time and, in the long term, even surpass them.
According to the general analysis, at the national aggregate level, the productivity of refugees and immigrants matches that of Brazilian workers after about 28 months of employment and exceeds it thereafter. In mid- and high-level occupations and in large establishments, for example, the match is immediate.
According to the report, the qualitative analysis, based on testimony from managers who evaluated the performance of native-born and refugee workers at their companies, highlights frequent upward mobility associated with time at the company, language skills, and qualifications.
“This survey helps change the debate on refuge in Brazil by replacing perceptions with evidence. The data shows that when refugees have access to formal work, they contribute to economic development, increase tax revenue, and strengthen the development of the communities where they live,” said Paulo Sergio de Almeida, livelihoods and economic inclusion officer at UNHCR.
For Almeida, despite the finding that the presence of refugees and immigrants in the local labor market benefits both public authorities and companies, the challenge remains to translate this evidence into more public policies and more opportunities for inclusion through coordinated action by governments, companies, and civil society.
Another finding from the study indicates that absenteeism—the number of work absences—tends to be lower among workers who came to the country as refugees and immigrants. According to the data, the likelihood of absence from work is 20.9% lower than in the local workforce, resulting in a systematically lower differential cost of absenteeism throughout the period.
Based on this and other factors, the study says there is an invisible cost to not hiring workers with this profile. According to the report, the productivity gains that companies fail to capture by not hiring immigrant and refugee workers rose from just over R$40 billion in 2018 to about R$60 billion in 2024 in the aggregate, with higher amounts in the Southeast and in the food and textile industries.
The data reinforce the message from UNHCR and other organizations that work with refugees. Despite the stigma of vulnerability associated with people who flee their countries, they arrive with an above-average desire to rebuild their lives. In addition to the resilience gained from facing hardship, they also bring professional skills and knowledge that contribute to companies and local society.
“The inclusion of refugees in the labor market produces concrete results for businesses. Companies find committed professionals, reduce hiring bottlenecks, and become more competitive,” said Gabriela Rozman, education and productive inclusion manager at the UN Global Compact Network Brazil. “At the same time, they contribute to a more inclusive economy and a fairer society,” she concluded.
Translation: Todd Harkin
