The rate of jobseekers in May was 23.5% of employed persons, compared with 3.9% in February • The bad news: High unemployment will lead to a decline in wages in the economy
Unemployment is still alarming. Queue at the Employment Bureau
Photo:
Joshua Joseph
The Israeli economy is beginning to recover from the Corona crisis - according to the Employment Service. 206,000 job seekers reportedly returned to work in May, with the return to routine. The bad news: The multiplicity of the unemployed may also cause harm to the employed, due to the decline in their bargaining power. Therefore, a decline in wages is expected in many industries.
In May 2020, the number of original jobseekers stood at 1.165 million, but by the end of the month, a return of about 206.5 thousand women and men was registered. After returning, the rate of jobseekers was 23.5% at the end of May in Israel in May 2020. By comparison, in February the rate of jobseekers was 3.9%, which is 162.5,000 people.
The sharp change in the economy from a situation of almost full employment to a peak rate of unemployed, leads to a decline in workers' bargaining power, an expected drop in wages (in the medium and long term), and an increase in sub-employment for several groups, most notably low earners. Already you see that the number of job vacancies is much more limited.
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In May, approximately 17.7% of those registered with the Employment Service reported returning to work. However, the number may actually be higher, given the self-report. The expectation in the employment service is that the reporting rate will be strengthened upon the implementation of the incentive program to return employees to workplaces.
Photo: Connect
Return to work among income assurance recipients is still low (5.2%), compared to higher rates among unemployed job seekers (18.9%). That is, the difficulty of people who were unemployed before the crisis to return to work has already been expressed. Without proper response, the difficulty of those people re-integrating into the work can lead them into the allowance circle.
Younger and older adults reported a lower recurrence rate, relative to the central age groups. The low proportion of adults who reported returning to work may be due to underreporting, but this figure will be reviewed below.
The proportion of women who reported returning to work was high. This is mainly due to the education and teaching professions, where the rate of return was higher. This figure partly explains the high rate of women leaving the US.
The proportion of Muslims, Christians and Druze who reported returning to work was significantly lower than Jews. This can indicate the professions to which the dismissed belonged. Moreover, this figure indicates the need to help those people return to the labor market in order not to hurt the achievements of the Israeli labor market over the past decade and a half.
The high rate of return to work was in medical and health professions, accounting and finance, law and law and teaching and education. On the other hand, the professions with the lowest return to work were tourism and hotels, media and entertainment content, aeronautics and seafaring. This is due to the crisis exit strategy. These figures are also similar to the data released in the OECD report last Thursday.
At the geographical level, there are three types of communities that are at the top of the cities with the highest rate of jobseekers: cities with large concentrations of ultra-Orthodox and Arabs, along with Eilat, which is the reason for the damage to the tourism industry. These data sharpen the need to address unique population groups.