IKEA’s Commitment to Supporting Refugees
One of the Top 20 Most Influential Projects of 2024
For the training, upskilling and job placement of refugees into stable employment
Region: Global Sector: Retail UN SDGs: 8, Decent Work and Economic Growth; 10, Reduced Inequalities
More than 31 million people around the world are refugees, people who have been forcibly displaced from their homes as a result of war or persecution. Among the many obstacles that adults in this population face is finding safe and stable employment that pays a living wage. This is especially true for refugees who remain in transit and those who live in refugee camps.
“The opportunity to work and earn a living is one of the most effective ways refugees can rebuild their lives with dignity and in peace…, meet[ing] their families’ basic needs, improv[ing] their self-reliance and resilience, and contribut[ing] to society — which is what they want,” says the United Nations Refugee Agency (UNHCR). However, formal, legal employment is often restricted by the host country, and working without government authorization puts refugees at legal risk.
A lack of formal education or entrepreneurial training can also be a barrier to work among this population, which is where the global home furnishing and accessories retailer IKEA and partner companies and nonprofits have stepped in. The Swedish brand has long had a detailed social entrepreneurship model, and in 2023, it expanded its commitment by unveiling a new project — a three-pronged program designed specifically to support the professional development and economic opportunities for refugees, especially those in Jordan, Poland, and Romania.
The project was announced in December 2023, when IKEA Social Entrepreneurship committed to a significant pledge alongside Ingka Group (IKEA’s largest retailer) and the IKEA Foundation at the UNHCR Global Refugee Forum. The first part of the pledge consisted of a promise to provide financial support and business guidance that would result in the employability of 3,000 refugees and asylum seekers by the end of 2027. “We are absolutely convinced that refugees and asylum seekers bring skills, diversity and different perspectives that benefit our business and society,” said Tolga Öncü, Ingka Retail Manager, in a press release issued by Ingka Group at the time of the announcement.
IKEA and Ingka Group noted that their previous collaborations had yielded impressive outcomes, with Ingka Group having supported 2,935 asylum seekers and refugees from 2019 to 2023. Fifty-four percent of the people who were supported acquired jobs inside or outside IKEA after participating in the companies’ training programs; an additional 332 people were hired through their Displaced Talent Program.
Another component of the pledge involved IKEA Group’s commitment to the Jordan River Foundation, with the purpose of creating long-term jobs for 400 refugee women and local female artisans. These jobs will serve IKEA, too, as they will result in the creation of artisan-made products for retail at IKEA’s stores around the world. Finally, the third part of the social business project to support refugees is a collaboration among IKEA, Cisco Foundation, and the nonprofit NESsT, to create 3,000 long-term jobs for refugees and migrants in Poland and Romania.
IKEA’s ability to fulfill these pledges has been proven by precedents the company has established with previous projects. Earlier in 2023, IKEA’s partnerships with 12 social businesses across the home furnishing and food lines resulted in at least two new retail lines: VINTER and MMÄVINN, featuring products from seven social businesses across Asia. “We’re excited to see how the program can further accelerate their socially impactful operations and create long-lasting integration opportunities,” said Tirza Voss, Program Coordinator, IKEA Social Entrepreneurship, upon announcement of the partnership.