Employment of the bottom quintile of income was 29% lower compared to only 6%. In the top

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by Ifi Reporter Category:Capital Market Dec 13, 2020

The employment rate in the economy has fallen from 61% to 50% since the beginning of the crisis - but this figure does not reflect the intensity of social disparities: the employment rate of the bottom quintile of income was 29% lower in October relative to the eve of the crisis, compared to only 6%. In the top quintile. That is, the decline in employment among the weakest was 5 times greater than that recorded among the strongest. This emerges from a review of the effect of the second closure on the labor market published today (Sunday) by the chief economist at the Treasury, Shira Greenberg.
The employment rate in the economy has fallen since the beginning of the crisis by 11%, from 61% in February to 50% in October - a decrease of 730,000 employed persons. The Ministry of Finance notes that the employment rate better reflects the state of the economy, because it shows not only the unemployed - but also people who have given up on looking for work.
The employment rate of the bottom quintile of revenue fell by 29% between February and October, compared with a decline of only 6% of the top quintile. The more significant harm to the employment of low-income people is explained, among other things, by the high harm to non-academics and part-time workers. Thus, the employment rate of those who do not have an academic degree decreased by 22%, compared to a 10% decrease in the employment of degree holders. The main victims due to the closures are people who do not have a matriculation certificate, who are usually employed in jobs that cannot be done remotely, as well as students, who are employed a lot in the food, tourism and entertainment industries.
The decline in the employment rate during the second closure is particularly pronounced among ultra-Orthodox men and Arab women. Thus, the employment rate of Arab men decreased by 25% compared to 2019 and of Arab women by 21%. There has also been a 22% decline in the employment of Arab men, but it seems that this decline began as early as the first two months of the year, that is, before the crisis broke out.
While the average unemployment rate in October was 18%, the unemployment rate in the ultra-Orthodox population was particularly high (26% for men and 24% for women). In contrast, the unemployment rate among the Arab population was relatively low (13% for men and 15% for women). . This is not a positive figure; This is due to the fact that many of them have stopped looking for work and are out of the labor force, and thus there has been a 12% decrease in the labor market participation rate compared to 2019. The Ministry of Finance states that "this situation of staying out of the Arab population, "It may make it harder for the labor market to recover in the coming years."

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