Unemployment Rates in Israel Surge Amidst War: Official Figures Mask True Impact

In October, Israel's official unemployment rate stood at a seemingly low 3.0%, reflecting 133,000 unemployed individuals. However, the recent conflict has drastically altered the employment landscape, leading to a surge in job losses. Despite the reported decrease to 3.4% in the previous month, the true impact reveals a different story.

New data from the Central Bureau of Statistics (CBS) paints a more accurate picture. When including those "temporarily absent from work all week for economic reasons," a category that encompasses individuals on unemployment benefits, the number of unemployed rises to approximately 375,000. This results in an expanded unemployment rate of 8.5% for November, a decrease from October's 9.6%.

The most comprehensive unemployment rate, which considers those who have given up on job searches and those who ceased working since the onset of the pandemic, reached 10% in November.

These figures align with recent data on job vacancies, as well as reports from the Employment Service and the National Insurance, indicating a return to work in November.

It's noteworthy that the Knesset has not yet extended the law outlining unemployment benefits for December, leaving many in limbo. The National Insurance awaits updates on the law's continuation.

Further insights from CBS reveal that the reasons for additional temporary absences in November, predominantly attributed to the war, include economic reasons (48.0%), reserves (30.7%), and other factors (1.1%). These percentages have significantly shifted from October, highlighting the war's profound impact on the employment landscape.

Examining the employment rate as a percentage of the total population, it was 60.2% in November, a slight decrease from the previous month's 60.5%. However, when excluding those temporarily absent for economic reasons, the employment rate drops to 56.9%, emphasizing the hidden challenges beneath the surface.

Notably, the CBS acknowledges challenges in measurement during the war, noting the absence of sampled people in southern settlements within 7 km of the Gaza Strip, with the exception of Sderot.

As Israel grapples with the aftermath of conflict, the true extent of the economic impact is gradually coming to light, revealing a more nuanced and challenging situation than official figures might suggest.