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back to work?
Young people prefer to stay at home
Now it's official: the talk of the Khalal outline as an incentive for unemployment is gaining ground in numbers. Employment service data show that unemployment benefits have become a barrier to young people returning to work, as despite the widespread opening of the economy, the rate of youth return is significantly lower than expected
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employment
unemployment
Young people
Corona
Sonia Gorodisky
Sunday, 25 April 2021, 12:35 Updated: 12:56
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The Employment Service today publishes the data regarding the rate of return to work among young people. Unsurprisingly, but now at least officially, it turns out that despite the wide opening of the economy - the rate of return of young people is significantly lower than expected.
The data show that despite the opening of employment industries in which young people are employed at a high rate, the age distribution of job seekers in March is the same as that recorded in February.
This means that young people do not return to work at the expected rate
: during March, the restrictions of the corona were removed and the employment industries in which over-representation of young people, such as the catering, hospitality, leisure and trade industries, were opened almost fully. Despite this, the rate of youth employment did not change at all compared to February; 47.4% in March compared to the exact same percentage in February. This means that young people do not return to work.
The Employment Service's Research and Planning Division explains that unemployment has become a barrier to returning to work.
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This is true for young people and for other low-wage earners, not necessarily young people.
In July, unemployment must be limited according to age and situation and family, at a declining monthly rate, and continue to take the employment test that requires IDOs to make efforts to return to work.
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Distribution of job seekers by age (Photo: Employment Service)
The farm opens, the young people stay at home
One of the main phenomena that characterizes the employment crisis that has befallen Israel in the past year in the face of the spread of the corona virus was the sharp rise in the proportion of young people among job seekers in Israel.
Throughout the crisis year, the young population (up to age 34) constitutes about half of all job seekers, according to the Employment Service, due to the fact that the industries most significantly affected by the closure policy were those mostly employed by young people such as commerce, leisure, culture and tourism.
In addition, the Employment Service emphasizes that the combination of the sweeping extension of entitlement to unemployment benefits until the end of June 2021 with the fact that these are jobs that qualify for unemployment benefits close to high wages (Replacement Rate) leads to even when these industries return to employment. Are in no hurry to return to work.
"We must limit unemployment benefits"
Data published this morning (Sunday) by the Employment Service on employment data for March 2021 in age distribution show that during March the number of job seekers decreased by a total of 15% compared to February, when this decrease was reflected in the three main age groups - young (up to 34) , Aged 35-50 and aged 51 and over.
However, although in March the corona restrictions were lifted and the employment industries in which young people were overrepresented were opened almost completely, as the hospitality, catering, leisure and trade industries, the rate of return to work of young people was still lower than expected.
As a result, the distribution of active job seekers in March by age was almost the same as the distribution recorded in February, before the restrictions on the industries in which young people were overrepresented. In March, young people accounted for 47.4% of all job seekers (exactly the same as 47.42% in February), people aged 35-50 accounted for 30.94% (also the same as 30.91% in February) while those aged 51 and over accounted for 21.66% (compared with 21.67% in February).
Contrary to expectations, the proportion of groups among jobseekers did not change compared to February, and similar to the previous month in March, 47.4% of all jobseekers were young up to the age of 34, 30.9% were aged 35-50 and 21.7% were aged 51 and over.
"These data," the employment service claims, "confirm our claim throughout the crisis - the sweeping extension of entitlement to unemployment benefits has turned unemployment benefits from a safety net aimed at enabling an optimal return to the labor force into a barrier facing return to work."
The Employment Service emphasizes: "In order to encourage the return to work of young people, as of other low-wage earners, in July we must limit unemployment benefits to a short and differential period according to age and marital status, at a monthly rate and conditional on active return to work such as job search, course participation and "All this in order to encourage the return to work of those who can do so."
Rami Graur, Director General of the Employment Service (Photo: Government Press Office, Shlomi Amsalem)
According to the Research and Planning Division, the fact that the rate of return of young people to the labor force is lower than expected has led to many jobs in the employment industries in which young people are overrepresented, such as catering, hospitality, recreation, leisure and commerce.
As a result of young people not returning to these jobs, the number of vacancies in these industries has increased significantly in recent months.
For example, from December 2020 to March 2021, the jobs of kitchen workers increased by 36%, the jobs of waiters and bartenders by 208%, while the number of vacant kitchen jobs increased by no less than 218% in these three months.
Director of the Employment Service, Rami Graur
: "The data confirm what they have argued all along, the sweeping extension of unemployment benefits saved hundreds of thousands of job seekers and employers from collapsing. "Effective unemployment benefits that will encourage return to work. A time-limited model, differential according to age and situation and family, and later the existence of the employment test that will ensure the original purpose of unemployment benefits as a safety net for those who need it."
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