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AbstractThis article draws on data from a survey of 400 refugees and shows low levels of labour market activity. The minority of refugees who are working are in secondary sector jobs with little opportunity for progression. Moreover, refugees with high levels of skills who are working are not in jobs commensurate with their skills and qualifications. The article examines the human capacity and personal characteristics that have an impact on refugee employment, and finds the greatest difference in employment is between men and women, although English language fluency and training are also very important. Employment is a major part of the refugee integration strategy, and employment initiatives focus on capacity-building rather than discrimination or reversing restrictive policies. The article concludes that strategies need to focus on individual employability as well as measures to overcome personal and structural barriers to the labour market.This article examines the inherent contradiction between UK refugee integration strategies that focus on employment and, in particular, the employability of refugees, and restrictive government policies that negatively affect access to the labour market. The article argues that a real commitment to the economic integration of refugees requires a radical reform of recent policy that contributes to exclusion and underemployment. The article will first examine the position of employment in refugee integration policy. Secondly, the main factors that have an impact on refugee employment will be explored, and the importance of human capacity such as English language and refugees' personal characteristics will be highlighted. Thirdly, refugees' perceptions of their own barriers to the labour market which revolve around human capacity issues will be considered. Finally, the position of highly skilled refugees with English language fluency will be explored to show the ways in which refugee integration policy is not addressing their unemployment and underemployment because of the failure of policy to address discrimination and the ways in which current refugee policies add to economic exclusion.