Encouraging Signs of Labor Market Recovery Amidst Gaza War Challenges

In a positive turn of events, the Israeli job market is displaying signs of recovery, with increasing numbers of individuals returning to work after a challenging two and a half months since the beginning of the war. Data released by the employment service indicates a continuous and significant rise in employment figures, projecting approximately 83.5 thousand Israelis to re-enter the labor market by the end of 2023.

October saw about 15,600 individuals returning to work, followed by a notable surge in November with 32,500 returning employees. Mid-December alone witnessed 17,300 re-employments, and the forecast suggests an additional 18 thousand returning to work by the end of the month, marking a total of about 35 thousand in December.

The recovery is evident in the proportion of individuals returning to work compared to the total number of registered job seekers. In November, 9.8% of the 332,000 jobseekers who registered during the month successfully found employment, showcasing a significant increase from October's 6.7%. This marks nearly a 50% rise in the proportion of individuals returning to work out of the total number of registered job seekers.

The data also reflects a shift in gender dynamics. While in September, men returned to work at a faster rate than women, the subsequent months of October, November, and December showed a more balanced pace. Notably, women returned to work faster than men in November, indicating a positive trend in the labor market recovery.

An analysis of return-to-work rates by sector, gender, and geographic district reveals that the ultra-Orthodox sector experienced the highest chances of re-employment. However, it is crucial to note that these figures are influenced by the ongoing return to work from summer layoffs, particularly common in ultra-Orthodox society.

Promisingly, returns to work were observed across all occupations, with notable recoveries in personal therapy, sales, ancillary occupations in the fields of society and law, and among general clerks. However, it is acknowledged that certain sectors, such as construction, tourism, and entertainment, faced severe crises during the war, as reported by government ministries.

As the job market demonstrates resilience amidst challenging times, these positive indicators provide hope for continued recovery and stability in the Israeli labor market.