A new analysis of 6,000+ survey observations reveals that while 57% of Ukrainian refugees in Europe are employed, they remain 22 percentage points behind host-country nationals. Beyond the participation gap, the report uncovers a "de-skilling" crisis: 60% work below their skill level, with tertiary-educated refugees five times more likely than locals to hold low-skilled positions. This structural mismatch drives a significant wage gap and prevents host countries from realizing potential GDP gains of up to 0.7 percentage points per year.