Crisis Deepens: Over 84,000 New Unemployment Benefit Applications Amidst Ongoing Hostilities

National Insurance Institute has reported an alarming increase in unemployment benefit applications since the beginning of November, mirroring figures reminiscent of the COVID-19 crisis. A total of 84,618 applicants have sought assistance from the National Insurance Institute due to the ongoing hostilities. Of these, 61,500 individuals have been forced into involuntary unemployment, while 23,118 cited other reasons such as layoffs.

Industries severely affected by the crisis include retail, trade, hospitality, and food services. However, the ripple effect extends beyond these sectors, impacting the entertainment, construction, health, education, management, software services, and transportation industries, leading to thousands of workers facing layoffs.

The surge in unemployment applications began to intensify as it became clear that the situation would not be resolved swiftly. Within just seven days of November, 35,577 new applications for unemployment benefits were received, with a substantial 31,180 cases attributed to involuntary sick leave and 4,397 for other reasons.

The crisis reached its peak between October 22 and October 31, with a slight dip over the weekend, and has continued its upward trajectory since the start of November. In October alone, over 50,000 new applications were recorded, far surpassing the average of approximately 20,000 monthly applications during normal times. Even during the summer months of July and August, typically a period of lower demand due to vacations, there were about 23,000 applicants for unemployment benefits.

Breaking down the statistics, out of the 86,239 applicants for unemployment benefits, a significant 60% are aged between 20 and 40, totaling 51,721 individuals. Meanwhile, 33,255 applicants fall within the age group of 41 to 67. There are also about 330 applicants who are over the age of 67, currently ineligible for unemployment benefits according to existing law. However, a legislative amendment is anticipated to be enacted in the Knesset this week, extending coverage to this age group as part of the evolving relief package. In a concerning revelation, 933 applicants are under the age of 20, underscoring the widespread impact of the crisis on the workforce.

The mounting pressure on the job market and the increase in unemployment applications paint a dire picture, highlighting the urgent need for comprehensive measures to address the economic fallout caused by the ongoing hostilities.