The trend of improvement in the economy continues, and according to the condition of the Ministry of Finance, this should have led to a change in the conditions in the model.
Dizengoff Square, February 2021
Photo:
Gideon Markovich
Change in eligibility for
unemployment
due to the recovery of the economy? Not sure: the
unemployment rate fell below 10% for an entire month and stood at 9.5%, according to data from the Central Bureau of Statistics published today (Wednesday).
According to the Ministry of Finance's condition for the "applicable model", this figure was supposed to lead to tougher conditions for those entitled to unemployment benefits and their cuts, as this is the first time this figure has been achieved since the amendment was introduced. Will change at least until the end of the model this coming June, but now has not repeated that statement.
"I welcome the update of the CBS unemployment data for March, according to which the number of unemployed who were absent from work due to the corona was about 9.5% in March (without giving up)," Katz responded to the publication of the report. "This figure is a significant decrease. Compared to February 2021 where the figure was about 14%. This figure reflects the continuation of the positive trend and the direct result of the return of the economy to activity made possible by vaccines and the extensive economic safety net we deployed to the self-employed, business owners and Corona unemployed, which gave them the economic infrastructure to go through the crisis.
"We are now working hard to implement special assistance for employers to absorb people who have been out of the labor market for a long time, while continuing to provide incentives that will help veterans unemployed and accelerate the budget and vocational training for preferred professions with high wages and productivity." "The Treasury has many discussions to adjust and formulate employment policy after June and the necessary steps, given the decline in unemployment below 10% and the positive trend, all without hurting those who are not yet able to return to their profession in light of the remaining restrictions."
According to a report by the Bank of Israel at the beginning of the month, there is "no hurry to remove the safety net this coming June - the end date for granting grants and sickness benefits to the self-employed, business owners and employees. If the unemployment rate does not fall below 7.5%, no "It would be right to remove the economic safety net at once, but to focus on encouraging employment and professional training, increasing supervision of those who have not returned to work and focusing support on industries that have been hit more than others."
According to the law, until June 30, employees in the IDF are paid unemployment benefits at the rate of 70% of the salary on the eve of their release or dismissal.
However, if the unemployment rate falls below 105 during a peace month - the unemployment benefit will be cut by 10%, in the month following the one in which the decline in unemployment took place.
If the unemployment rate falls below 7.5%, the payment to the Knesset will be completely abolished.
Back to the CBS data, the percentage of the unemployed in the labor force was 4.7% compared to 5% in the previous month. That is, the percentage of the labor force of the employed who were temporarily absent from work all week due to Corona + unemployed causes - 9.5% (14.0% in February ).
The percentage of the labor force of non-participants who stopped working due to dismissal or closure of the workplace from March 2020 plus the employed who were temporarily absent from work all week due to Corona virus-related causes plus the unemployed was 11.8% compared to 16.7 percent in the previous month.
For the first half of March, the percentage of unemployed in the labor force was 4.7%, compared with 4.4% in the first half of March 2021.
The percentage of the labor force of the employed who were temporarily absent from work all week due to reasons related to the Corona virus plus the unemployed was 8.9% compared to (9.8% in the first half of March 2021). The percentage of the labor force of non-employed people who stopped working due to dismissal or job closure from March 2020 plus employed persons who are temporarily absent from work all week for reasons related to Corona virus plus unemployed stood at 11.6% compared to 12 percent in the first half of March 2021.
