18% of Israel’s workforce not in their regular jobs

764,000 Israeli employees are not in their jobs because of the war, the Ministry of Labor reports. This puts a considerable burden on the war economy, and it was one of the considerations that persuaded the Ministry of Finance to form a more extensive compensation plan.

Those not in their jobs fall into four main groups. The first group is an estimated 300,000 army reservists who have been called up. Reservists form part of the population that has a high rate of employment, and are also naturally of prime working age. The Ministry of Labor assumes calculates that there is a 90% employment rate among the reservists, meaning that







The second group are the residents of the Gaza border region and the north near the Lebanon border, who have been evacuated from their homes and are unable to work – an estimated 127,000 employees.

The third group are parents of children under the age of 10 who must reduce their work hours or forego their jobs altogether – an estimated 183,000 employees.

The fourth group are those working in industries that have been hit by the war including tourism, entertainment, retail and construction – an estimated 319,000 employees.

Taking into account that there are those overlapping between these groups, the Ministry of Labor calculates that 764,000 Israelis or 18% of the workforce are not in their jobs at the moment. This is less dramatic than when 1.15 million employees or 28% of the workforce were not working during the peak of the Covid pandemic. The big question is for how long can the Israeli economy continue to take such a hit?

Minister of Labor Yoav Ben-Tzur said, “The picture of the state of the economy helps us to direct resources to where they are needed, among other things by expanding opening hours in the required branches. In addition, we have approved bringing of 5,000 foreign workers to solve the plight of Israeli agriculture and help the industry continue to function. We will continue to provide answers in all places necessary.”

Published by Globes, Israel business news – en.globes.co.il – on November 2, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.


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