Employment

On October 7, 2023, Israel entered a war that paralyzed a considerable part of the labor market. More than 750,000 workers, who comprise nearly 20% of the labor force, stopped working, with approximately 270,000 of these workers currently mobilized in the army reserves. Close to 700,000 businesses and self-employed persons experienced difficulties in managing their businesses along with a drastic reduction in their business activity. The Israeli labor market was stable when it entered this crisis, with high overall employment rates and low unemployment, except for Arab women and ultra-Orthodox men who have continuously shown low employment rates and low skills over the years.

As a result, employment policy in Israel is aimed to assure that the labor market will remain as active as possible in the short term, while preparing for new challenges which will arise as the crisis unfolds. Short-term policy is focused on filling the manpower gaps and identifying possible relevant manpower resources as well as the training needed for these potential workers.

Preparing for the post-war period, policymakers in Israel see the difficult security situation facing Israel as an opportunity to integrate populations with low employment rates into the labor force (such as ultra-Orthodox men, Arab women, and older adults who are past retirement age and are still eager to work), and to improve the skills of these groups. The Employment Team at MJB is an integral part of this national effort and its contribution in this time of emergency is focused on helping the Government of Israel by identifying immediate employment needs while, at the same time, examining new trends and challenges in the post-war labor market.