According to figures provided by Social Security, in June the eligibility of 262,000 people for unemployment benefits will end, of which 134,000 will receive nothing for this month and 128,000 will receive unemployment benefits. These are two main groups: one, of 58,000 unemployed veterans from the pre-Corona period, who, after half a year living on unemployment benefits and eating savings, if they had, will now be left with nothing.
Two factors that released yesterday's data on the plight of the economy - Social Security and the Central Bureau of Statistics (CBS) - have strengthened each other. Finance Minister Yisrael Katz's unemployment benefit plan will leave about half a million unemployed by the end of August without the right to unemployment benefits. CBS reported yesterday that 970,000 people did not work in May, strengthening employment service figures, which indicate that the rate of return to work Very slow.
In June, the problem is particularly difficult for young people. This is because of their short eligibility periods. 71% of those who qualify for unemployment benefits in June are young by the age of 27. However, in August the problem is pervasive and 56% are 28 or older. That is, they have many families with children. The prospect of all these unemployed people finding a job right now is slim to none. This, even if they compromise on work that is well below their skills, will damage both their families and the economy. Fear of Corona's second wave only reduces the chances of employers hiring new employees.
According to data from the Employment Service since the beginning of the economic easing, on April 19, 340,000 people reported returning to work. This situation can be considered a severe disappointment when it comes to 1.2 million unemployed. That is, even if we assume a very large missing 50,000 people report, we will conclude that 800,000 people are still unemployed and unemployment in the economy is still close to 20%.
CBS reported a decline from 1.5 million to 800,000 people who were absent from work each week the survey was conducted. Seemingly positive news. However, it is clear that most returnees are people who were on paid leave due to closure. 800,000 people who remained at home were in the vast majority of them in May. If you add them to the unemployed according to the CBS definition - that's 970,000 people. This is hard data.
These figures are largely consistent with the Employment and Social Security reports that by the end of May there were still about one million unemployed. Hopes of meaningless reporting are fading. One reason is that the CBS conducts surveys and is not based on reports. Social Security CEO Meir Spiegeler said at a press conference yesterday that Social Security is also based on employers' reports and checks its data daily.
"People are not guilty of unemployment because of government decisions," Shmuli said at the press conference. "It is morally wrong to take unemployment benefits and also ineffective." Shmuli warned "that hundreds of thousands of Israelis will drown below the poverty line. It's a sugary bomb." Shmuli and Spiegeler Claim to extend the eligibility of all unemployed by the end of August when they estimate the cost at NIS 3.3 billion, but they need to extend two more benefits ending in June: the 67-year-old unemployed grant and the possibility of doubling unemployment benefits that receive subsistence allowance. An additional NIS billion and a total of NIS 3.8 billion.
The chairman of the Histadrut, Arnon Bar-David, also joined today to demand that the unemployment benefit be extended to all unemployed by the end of August. They are expected to remain without income at all, "Bar-David wrote." This is a devastating scenario for the public and the economy in Israel. I urge you to prevent human injury to hundreds of thousands of households and extend the unemployment benefit period extensively by the end of August. "
Unemployment expenses are rising. The cost of Katz's outline addition is estimated at NIS 700 million. The decision to allow multiple subsistence allowances and unemployment benefits in March to June added another NIS 250 million. The Treasury is certainly not interested in another NIS 4 billion.