This morning, the Labor Department of the Ministry of Labor and Social Affairs publishes the report “The Labor Market in Israel 2020: Employment in the Corona Days,” which presents the situation in the Israeli labor market over the past year.
Demonstration of business owners in Tel Aviv (Photo: Avshalom Shashoni)
On the eve of the crisis, the labor market was in almost full employment, with an unemployment rate of only 3.8%. With the closure of the economy in March 2020, the unemployment rate (including people in the IDF) jumped and stood at an average of 16% in March-December 2020. The unemployment rate between closures (July-August 2020) was about 10%.
According to the report, the crisis caused a setback in one of the most important social tasks of the Israeli economy – the integration of ultra-Orthodox men in employment. The unemployment rate rose sharply in all sections of the population, but was highest among ultra-Orthodox men during most of the crisis months. For example, during the second closure, the unemployment rate among ultra-Orthodox men was 20%, compared with 14% among non-ultra-Orthodox Jews.
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The economic crisis following the epidemic has deepened the gaps that already exist in the employment market between the sexes and those with higher or professional education and others. Women were hit harder during the closures: the gender gap in the unemployment rate peaked at 11% in the first closure and 7% in the second closure.
The lowest unemployment rate was among academics (10% in the second closure) and graduates of practical engineering and technicians institutions (14% in the second closure), and was high among those whose last institution was a yeshiva or high school (19% in the second closure).
The occupations that have been hit the hardest since March are in the areas of restaurants, tourism, arts and culture. In these occupations, the unemployment rate ranged from 21% to 69% in July-August, when the economy had relatively few restrictions for the rest of the year. Among the professions that have been hit relatively lightly, there are software developers and employees of vital systems, such as teachers and doctors. The unemployment rate of these workers was less than 5%.
47% of workers in Israel are employed in occupations that allow them to work from home – and their rate is high compared to all OECD countries except Luxembourg, and significantly higher than the average in these countries (38%).
A survey initiated by the Labor Department of the Ministry of Labor and Welfare on labor norms illustrates the gaps between the law, labor norms in Israel and workers’ needs: about a quarter of respondents said they work more often than allowed by law, and 38% said they need more flexibility in working hours.
Mordechai Elisha, in charge of the labor arm, said in response to the data: “The unemployment rate that has risen in the past year, especially among low-skilled workers, requires a comprehensive investment in Israeli human capital, with an emphasis on strengthening vocational training and technology and promoting employment programs in out-of-market populations. the job”.
Roni Schnitzer, director of the Strategy and Policy Planning Division of the Labor Arm, adds: “If we do not learn to reduce the skills gaps between different population groups and the accessibility of different groups to training relevant to the labor market, many will find themselves behind – and with them the whole economy will be affected.”