Finance Minister Israel Katz announced that during the Corona crisis, the 30% reduction in unemployment benefits received by unemployed people in vocational training will be canceled. This is in order to encourage the departure of workers in the IDF, or those who have lost their jobs, for training or vocational retraining, thus helping them return to the labor market. The cancellation of the reduction will be valid like the other benefits in unemployment benefits until June 2021.
It is assumed that the recession in the economy and the major changes in the labor market, which became much more online during the Corona crisis, will force many to change jobs as well as undergo training or vocational retraining. The main obstacle on the way to the realization of these possibilities is the fact that despite the promises of the Treasury no funds for professional training have been transferred almost until this month. Another obstacle, when these funds arrive, is the rule according to which an unemployed person who is in the process of vocational training is reduced by 30% of the unemployment benefits he is entitled to receive. This includes Minister Katz's decision.
In addition, Katz decided to soon consider providing a special incentive for employers who will train employees who are on unpaid leave for preferred areas of activity. The amendment will be incorporated today in the framework of the bill for the program for economic assistance to Corona (safety net), which was discussed today in the Finance Committee.
Minister of Labor and Social Affairs Itzik Shmuli (Labor) welcomed the decision and said that "it is unacceptable that instead of giving the unemployed incentives for vocational training, which are a national need, the state will impose a fine on them." However, Shmuli said that "this is not enough - we must give an incentive to those who choose to undergo training by paying increased unemployment benefits by about 20%, and I intend to lead this."
MK Etty Hava Atia (Likud) said that "the supplement to 100% unemployment benefits is also an incentive to undergo retraining or professional training, and it will give the unemployed the right to a minimum living with dignity." MK Hila Shai and Zan (blue and white) said that "A new opportunity for hundreds of thousands of unemployed, to save many families from economic collapse and to rehabilitate the country's economy." In recent weeks, the two MKs have appealed to Katz to cancel the reduction.