The Employment Service warns that the unemployment rate at the end of 2020 will be 12% • Minister Peretz: "The most effective way to return workers is with the help of a flexible"
Queues at the employment service
Although the employment service publishes inaccurate unemployment data, it continues to provide advice on how to deal with the corona crisis. As it turned out, at least a third of those defined as "unemployed" by the employment service are not in practice, and yet the employment service "warns of a slow rate of return to work along with continued registration of new job seekers, which strengthens the estimate that by 2020 about half a million Israelis (12% unemployment) We will be left without a job. "
According to the CBS, the weighted unemployment rate is a little over 10%, and only if the restrictions are tightened - this rate will rise to the level predicted in the employment service. Further to this line, the employment service warns of a "lost generation" of young people, compared to Spain and Greece. This is despite the fact that there is an abysmal gap between the Israeli economy, which is prone to high-tech professions, and young people in Greece and Spain.
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The Employment Service calls for increased government intervention, and for a balance between three components: Social safety net - tools that encourage employee retention as a substitute for dismissal; Efforts to encourage employment integration - even if the price for some people will be a temporary entry into a state of underemployment; Strengthening human capital for the future market. According to the proposal, the German model will be adopted - in which the employee can receive up to 60% of his salary without work, and flexibility will be allowed in the terms of employment, such as part-time work and rotation work.
Following the Corona crisis and to encourage a rapid return of workers from sick leave or dismissal, the government decided to subsidize the wages of those who integrate into work for four months. The potential for those entitled to the grant is about 200,000 employers for about 700,000 people.
Photo: GPO
The service recommends encouraging employment through benefits, in a way that will ensure that the work (and training) will always be more rewarding than just providing benefits. "Today there are many jobs that are not staffed in the areas of hotels, industry and more," the employment service explains. "In order to reach the tailored programs, it is possible to rely on the voucher program for vocational training, and allow people who choose this track full funding and even a higher rate of training, with a commitment on the part of the employer to medium-term employment promotion and commitment on the part of the employee." Group workers: Providing an incentive for an employer that needs a number of workers to absorb an organic group, especially from industries that have been affected collectively. "
Employment Service CEO Rami Graur: "A balance is needed between two complementary tracks: strengthening the skill level of job seekers, and an effective incentive for their integration into work. In addition, there is no escape from increasing demand directly by the government, including in national government projects that will also affect labor productivity. "
Minister of Economy and Industry Amir Peretz: "The most effective way to restore workers is through a flexible challah - employers will be able to employ part-time workers according to their needs, while the state will pay workers their wages, through the challah payment they receive anyway. Only after the crisis Lev will pay for it. "