Finance Minister intends to extend the unemployment benefits beyond the end of June 2021

Finance Minister Israel Katz intends to extend the payment of unemployment benefits beyond the end of June 2021. This, until unemployment reaches 7.5% according to the CBS 'calculated calculation. For a law that benefits voters so much, it should be noted that each month a payment costs the state an average of NIS 2.5 billion.
In September, the National Insurance Institute paid unemployment benefits to 641,000 people. It is likely that following the second closure the number has increased. According to a very unusual law passed by the government following the corona crisis, unemployment benefits will be paid to all eligible people from the beginning of 2020 until the end of June 2021 or until unemployment drops to 7.5%, according to the CBS 'very narrow calculation. In Khalat) and does not include despairing of job search.
According to the law, the payment of unemployment benefits to the unemployed who have exhausted their original period should drop to 90% when unemployment reaches 10% and should stop when it drops to 7.5% or at the end of June 2021. In fact, unemployment benefits should have dropped to 90% two months ago This is when the unemployment rate dropped quite surprisingly from 10% on the eve of the second closure. Katz realized that it was impossible to reduce unemployment benefits on the eve of closure and postponed the offset until the next time wages fell to 10%. In the first half of November, unemployment was 12.6% according to this calculation.
Katz has now announced an intention to postpone further indefinitely even after June until unemployment according to the limited calculation reaches 7.5%. It should be noted that many elements in the government and the economy claim that securing unemployment benefits until June causes many unemployed, especially those with low wages, to prefer to stay at home and thus encourages unemployment and working in the black. The directive is likely to provoke criticism and Katz will even be accused of an election economy.
In practice, it is very doubtful whether the unemployed will benefit for a long time due to Katz's decision. Given the schedule of vaccines and the fact that summer is the main activity time of the hotel and entertainment industries it is likely that mid-summer will be the time when we reach 7.5% unemployment according to the limited calculation. In practice there will be many more unemployed but they are not counted in this calculation.
The Office of the Minister of Finance stated that "the policy of the Minister of Finance remains unchanged - a return to the unemployment routine in 2021 after a decrease of 7.5% unemployment". According to the Ministry of Finance, "depending on the return of the economy to activity due to the arrival of vaccines and incentives for workers to return to work and professional training, there is a high probability of meeting the target by the end of June." However, "if necessary, the appropriate sources will be identified and the necessary legislation will be brought in, as is currently being done with a growth inhibition plan for the self-employed and business owners and as was done previously in providing the special grant to the unemployed."