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"Non-integration of ultra-Orthodox in employment - damage of hundreds of billions to the GDP" | Israel today

2022-09-13T17:20:53.095Z


The school storm in the ultra-orthodox sector - the experts warn of a catastrophe: "damages of NIS 220 billion in 2050" • And they are sure: "If Netanyahu's promise comes true, this is a very bad solution for the economy and the sector"


The issue of studies in the ultra-orthodox sector continues to cause a stir.

It started on Sunday morning with a headline in The New York Times that the Hasidic schools in the city do not teach core studies, even though they are required to do so by law and are budgeted with public funds.

Later this week it was Binyamin Netanyahu who pledged, according to publications, to compare the budgeting of ultra-Orthodox Torah Talmuds with those in the general sector regardless of the obligation of core studies.

It is difficult to exaggerate the importance of the core studies in the ultra-Orthodox sector (English, math and Hebrew) - they have heavy economic consequences not only on the sector itself but on the level of the entire economy.

The low scope of core studies does not allow this population to integrate into the employment market in an optimal way.

While the employment rate of ultra-Orthodox women is high and on the rise (78%), and is very similar to the rate of the general population, the employment rate of ultra-Orthodox men is lower than that of all men and stands at only about 50%.

"If the ultra-Orthodox were to work like the average of the men in Israel and earn like the average of the men in Israel, the GDP of the State of Israel would be about 30 billion shekels higher per year. If the combination of the employment of the ultra-Orthodox men does not change, the damage to the GDP in 2035 will jump to 80 billion shekels And in 2050 to 220 billion shekels, this is a catastrophe," warns Dr. Gilad Malach, head of the ultra-Orthodox program at the Israel Democracy Institute, in a conversation with "Israel Today".

"Very bad solution"

Malach goes on to tell about the survey conducted at the institute among the ultra-Orthodox population, in which only 20% of the respondents answered that their son learns English, that is - the majority of the ultra-Orthodox sector does not learn English, even though most educational institutions are obliged to do so at various levels.

"When we asked those whose children do not learn English if they would like to, more than 40% said yes. In other words, in some of the ultra-Orthodox population we see a desire for them to learn more English and more arithmetic."

However, even this motivation described by an angel to study core studies may be damaged.

We will remind you that at the end of June, the Minister of Education and the Minister of Finance announced the program to promote core studies in the ultra-orthodox sector, under which Mochshar schools (recognized unofficial education), which are currently budgeted at a rate of 75%, and Torah Talmuds, which are budgeted at a rate of 55%, will be eligible for a grant At the level of approximately NIS 6,000 per student and an ongoing annual grant, this is to the extent that they raise the rate of core studies to 100% and are tested for it.

The deadline for registering for the program is September 23, so there is no data yet on the number of institutions, but the Treasury already says that there is interest from a large number of institutions.

The program determines grants for those who pass the annual exams, so that the entire budget will only be given to actual core studies students.

"Belaz Hasidism, and perhaps other parties as well, were interested in entering this program. On the other hand, as soon as they found a way to receive the same budgetary benefit without changing the curriculum, the financial pressure fell on them."

Her mortgage increased in the sector

It should be remembered that the financial pressure on ultra-Orthodox households, especially among young couples, is increasing.

"Today, many young couples in the ultra-Orthodox sector are forced to take on their mortgage, which was not the case in the past, and their mortgage has increased in recent years," Malach says.

"If Netanyahu's promise comes true, the pressure on the ultra-orthodox sector to make changes will decrease. In the short term, this can provide an answer to the economic distress of the sector, but in the medium and long term, also for the young couples, and certainly for the Israeli economy, this is a very bad solution."

"Increasing taxes by 16%"

According to the Bank of Israel, "The proportion of the ultra-Orthodox in the population is steadily increasing and is expected to reach a third in 2065. Without the full integration of the ultra-Orthodox and other populations in the future labor market, we will not be able to approach the standard of living of the rich countries, and there is even a fear that we will fall in the ranking over the years, since the ultra-orthodox society is becoming significant More and more in terms of scope."

Core studies in the ultra-orthodox sector will benefit not only the entire economy but first and foremost the sector itself and will improve its economic situation.

Today, the net income of ultra-Orthodox households is about 30% lower than that of secular households, and of course the ultra-Orthodox household is larger.

The tax payments of ultra-Orthodox households are about a third of those of non-Orthodox households.

"If the demographic trends are maintained over the years and the ultra-Orthodox participation in the labor market remains as it is today, this means that in order to maintain the scope of tax collection in GDP in 2065, an increase of approximately 16% in direct taxes will be required in 2018 terms," ​​the governor of the Bank of Israel warned two and a half years ago.

It should be noted that the governor is the economic advisor to the government.

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Source: israelhayom

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