The Syrian refugee influx has undoubtedly exacerbated pre-existing economic and labor market challenges facing host communities including high unemployment and large informal markets, while the huge population increase has caused an enormous strain on resources, services and infrastructure. However, there is also a growing body of research that evidences the vital role Syrian refugees’ play in stimulating host economies and even buffering host economies from some of the wider regional economic impacts of the Syrian war. Indirectly, the increase in humanitarian aid and spending alongside Syrian investment has contributed to a positive effect of job creation and consumer spending on food, rents and services amongst local economies. Yet, host governments responses to date have increasingly restricted access to formal work for Syrian refugees, undoubtedly paralyzing the increased economic contribution Syrian refugees could make if permitted to work. Moreover, restrictions on formal work are creating immense suffering, including labor exploitation, child labor and poverty for refugees and a race to the bottom in wages in the informal sector, which affects the most vulnerable host communities.

As humanitarian assistance declines and refugee savings deplete and with no end in sight to the war in Syria, these current policy approaches on access to work are unsustainable. More and more Syrian refugees urgently need to enter the labor market to meet their needs. A holistic and balanced approach is required to respond in a way that addresses both the humanitarian needs of Syrian refugees and vulnerable host communities. In light of pre-existing challenges facing all of the host communities’ labor markets, this crisis should also be seen as an opportunity for host governments to address labor market challenges through reform and enforcement of laws and standards that would not only ensure a more dignified life for Syrian refugees but also better protect the most vulnerable host community workers.