Today (Tuesday), the Central Bureau of Statistics published a survey on the state of business in Israel during the Iron Sword War. According to the survey, in mid-December, about 14% of businesses in Israel reported a sharp reduction in their employment, up to 20% of their workforce, or to the point of ceasing operations in them altogether in the past month.
A farmer's market in the Azrieli Mall | Avi Cohen
Following data from flash surveys carried out in the previous two months, we can see the continued decline in the share of businesses in a state of minimum employment or temporary closure from 37% of businesses at the end of October to about 22% of businesses in mid-November to about 14% of businesses in the current month.
However, even two and a half months into the war, nearly one-fifth of small businesses are in a state of minimal employment or temporary closure. On the other hand, more than 64% of large businesses with more than 101 jobs routinely have a high level of employment – that is, over 81% of pre-war employment.
In the Southern District, which was severely damaged by the October 59 events, there was a relatively rapid recovery: the percentage of businesses in the province that are in a state of minimal employment or temporary closure declined from about 10% at the end of October to about <>% in December.
Cafe on Herzl Street in Rishon LeZion, Archive, Photo: Yossi Zeliger
In the Northern District, businesses reporting minimal employment or temporary closures remained unimproved compared to November, and was the highest among all districts with about 27% of businesses.
As expected, the highest numbers of businesses affected by the war are in the construction industry. One in four businesses in the industry reported a sharp reduction in employment. In contrast, the high-tech and finance industries stand out favorably with a very high percentage of businesses in a normal employment situation.
Unlike employment estimates, the improvement in business revenue estimates is more moderate. The Tel Aviv District recorded the most significant improvement in revenue – the share of businesses reporting a severe hit to revenue declined from 52% of businesses in October to about 21% in December. In the other provinces, the percentage of businesses reporting a severe negative impact on revenue in December is similar to this estimate in November.
In the manufacturing and food and beverage industries, i.e., cafes and restaurants, there has been a continuous improvement: the share of businesses reporting a severe hit to revenue over the three months is declining.The Northern District is the only district in which the rate of those reporting a severe hit to revenue in December is higher than the rate reporting a moderate impact.
The survey also shows that about 49% of businesses define the decline in demand for a product or service as the main cause of economic damage to their company. The rate of large businesses that define the shortage of workers as the main cause of harm is higher than the rate of small businesses that define it as such.
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