The highest unemployment rate in the corona period was recorded among ultra-Orthodox men in most months of the crisis, according to a report by the Labor Market in Israel 2020 published today (Thursday) by the Ministry of Labor and Welfare. The report also shows that women were significantly more affected than men during the three closures.
The average unemployment rate in the corona period, from March to December 2020, averaged 16%, more than four times higher than in the pre-crisis period. The rate between closures (July-August 2020) was about 10% and reflects to some extent the economic activity at a time of relative control of the virus and the beginning of the exit from the employment crisis.
During the second closure period, the unemployment rate among ultra-Orthodox men was 20%, compared with 14% among the general population. The employment of ultra-Orthodox men is relatively low compared to other population groups even in non-crisis normal times, and combined with the high unemployment during the crisis, raising their employment rate will be a major challenge in the next decade.
The report also shows the gender gap between women and men in the unemployment rate, which peaked at 11% in the first closure and 7% in the second closure. However, between closures, when the economy was largely open, the unemployment rate of women and men was similar.
Another key statistic that emerges from the report is that 47% of workers in Israel are employed in a profession that allows work from home - second place among OECD countries. In addition, the report shows that about a quarter of Israelis testified that they work more often than allowed by law and that the highest unemployment rate during 2020 was among ultra-Orthodox men.
The high rate of remote work potential relative to the OECD is due to the high rate of teaching and high-tech workers. Although almost half of Israelis can work from home, in practice only a quarter of them do so. Thus, in September-October 2020 27% of workers reported that they actually worked from home.
Examining the ability to work from home according to home infrastructure shows that while secular Jews live in relatively spacious homes with computers and the Internet, the ultra-Orthodox and Arab populations live in crowded homes without a computer, a fact that makes it difficult to work from home. 91% of the non-Haredi Jewish population has access to a computer and the Internet, compared with 76% of Arabs and only 37% of Haredim.
lowest unemployment rate - graduates of academia
Another figure that emerged from the report shows that the unemployment rate was lower among workers with degrees and academic certificates. The lowest unemployment rate was among graduates of academia (10% in the second closure) and graduates of institutions for practical engineers and technicians (14% in the second closure). However, a high rate was recorded among those who had only a high school education or studied in a yeshiva (19% in the second closure). These data largely indicate the type of work in which graduates of the various institutions are integrated. Thus, academics and institutions for the training of practical engineers and technicians were more integrated in jobs that were defined as vital throughout the crisis or that were more convenient to perform remotely.
The professions that have been hit the hardest since March are the restaurants, tourism, arts and culture. In these occupations, the unemployment rate ranged from 21% to 69% in July-August as well, at a time when the economy had few restrictions relative to the rest of the year. During the closures, occupations involving audience reception were also affected, such as shop assistants and hair stylists.
Among the professions that have been lightly affected are those of vital systems such as teachers and doctors. The unemployment rate of these workers was less than 5% when the economy was relatively open in July and August.
The authors of the report emphasize the importance of adapting the legislation to changes that took place in the employment market during the Corona period. This is because employers have had to change working hours to adapt to changing constraints and demands, and workers have had to deal with the need to change working hours due to the lack of education frameworks.
The report states that the lack of compliance in legislation with changes in the labor market "may harm the entire economy, workers and employers alike." An example of this can be found in legislation related to working hours in Israel, which are higher than the OECD average. In Israel, an employee can be employed up to 12 hours a day, including overtime, and no more than 58 hours per week (42 normal hours and 16 overtime hours). In contrast, in many countries around the world, the overtime quota is set on a periodic average basis or a periodic quota, allowing flexibility according to requirements and demands.
For example, in Denmark and Ireland it is possible to work a higher number of overtime hours, as long as the average does not exceed 48 hours per week on average over four months. Flexibility in working hours is required in order to maintain an open and competitive economy, but this is not only a need of employers, but also of employees who are interested in flexibility in working hours in order to balance work requirements with other commitments and leisure hours.
A survey initiated by the Labor branch of the Ministry of Labor and Social Affairs on labor norms illustrates the gaps between the law, labor norms in Israel and the needs of workers. According to the survey, about a quarter of respondents testified that they work more often than allowed by law and 38% testified that they need more flexibility in working hours.
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