Refugee integration is shaped by the complex interplay between labour market and housing policies

Researchers Susanne Urban, Emma Holmqvist, and Vedran Omanović analyse two major Swedish reforms that reorganised policies related to refugee settlement and labour market integration. They investigate how different actors – including refugees themselves, employers, municipalities, and state agencies – have their own interests, which can lead to unintended consequences and conflicts at both local and national levels.

At the national level, the state has gradually increased its influence over refugee settlement and labour market integration, while municipalities have lost control over housing matters but taken on greater responsibility for settlement. Employers act as gatekeepers to the labour market but have no formal responsibility for refugee integration. At the same time, refugees’ ability to choose where to live and to secure long-term housing has decreased, limiting their agency. Nevertheless, the Establishment Reform has streamlined the process and increased levels of self-sufficiency for many.

“Our study shows that when settlement and labour market integration are treated as separate issues, tensions often emerge that are not resolved by political reforms – whether through centralisation or decentralisation. For instance, some municipalities view refugee reception as a financial burden, while others see it as an opportunity for population growth and fiscal compensation. This results in differing views on how integration should be organised and financed,” says Susanne Urban, Professor of Sociology at IBF.

One of the study’s main conclusions is that current policies fail to address the geographical paradox between housing availability and labour market access. Available housing is often found in areas with limited employment opportunities, while large cities suffer from housing shortages and high living costs, which restrict refugees’ chances of achieving economic self-sufficiency. The researchers suggest more flexible use of local resources, such as waiting times in municipal housing queues. Employers could also play a more active role by providing accommodation, as is often the case for expatriates and economic migrants.

“The study highlights the importance of including refugees’ perspectives in policymaking on an equal footing with other stakeholders. Increased mobility and greater freedom for refugees to choose their place of residence and integration strategy may prove more effective than further limiting their options. Acknowledging the tensions between actors and policy domains can create opportunities for more creative and coordinated policies. We hope the study helps demonstrate the need for a holistic approach that connects settlement, housing, and the labour market – a crucial step towards long-term, sustainable solutions for refugee integration,” says Emma Holmqvist, human geographer at IBF.