Examining the Correlation between Refugee Populations and Unemployment Rate in Host Nations

Abstract

In the past decade, the worldwide refugee population has more than doubled; in 2012, there were 10.5 million refugees, and this has increased to 27.1 million refugees by 2021. Studies on the effects of refugees on host nations' unemployment rates are inconclusive and there is a gap in knowledge of the relationship between refugees and the unemployment rate. Addressing this gap in knowledge would help further the understanding of the economic effects of large numbers of refugees and help reduce negative stigmas given to refugees and advise policy decisions. A correlational study was performed examining the correlation between an increase in refugees and a change in the unemployment rate of a host nation between the time frame of 1991-2021. The findings of the study include a weak positive correlation with a rs value of 0.198 and a p-value of 0.293, which indicates that the correlation is statistically insignificant. The lack of correlation between the variables indicates that natives should not fear that refugees make the job market more competitive or that they would strain the labor market. Similarly, intolerance, hate speech, and hardened attitudes toward refugees should not be justified on the fear that they damage the labor market.