Tags: Coronavirus | Israel | coronavirus | israel | unemployment | rate | report

Coronavirus Causes Unemployment to Spike from 4 to 25 Percent in Israel

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By    |   Wednesday, 01 April 2020 06:39 PM

The number of Israeli citizens filing for unemployment benefits has surpassed one million, as the coronavirus outbreak causes the jobless rate to jump about 20%, The Jerusalem Post reports.

Of the 1 million jobseekers, 90% are on unpaid leave from their jobs due to the outbreak, while 6.4% were made redundant. In total, more than 844,000 individuals have applied for unemployment benefits since the beginning of March, with 35,700 applications filed on Tuesday alone.

"Unfortunately, our forecasts materialized - we reached one million jobseekers in March alone," Israeli Employment Service director-general Rami Garor told the newspaper. "We are working to create the conditions so that next month can begin with lower unemployment, with the gradual return of the economy to normal, as far as possible and following the guidelines."

"The big question, both in Israel and in most economies affected by the virus, is whether this extremely exceptional situation is just temporary or could be long-lasting," added Professor Eran Yashiv of Tel Aviv University's Eitan Berglas School of Economics.

"There is a real danger that a significant fraction will not be able to resume work when this stoppage ends,” he added. “Obviously, the longer the containment policies last, the worse the situation will become."

Workers between the ages of 20 and 34 make up about 45% of applicants, workers aged 35-54 make up 37% of applicants, while only 14% are over 55 and only 2.5% are under 20, most likely because of the country’s mandatory military service that conscripts citizens when they reach 18 years old.

"In all crises, the most vulnerable workers are likely to be hit the hardest. Age will play a big role, because it always plays a big role," said Yashiv, who noted that unskilled workers will likely face the most difficulty.

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The number of Israeli citizens filing for unemployment benefits has surpassed one million, as the coronavirus outbreak causes the jobless rate to jump about 20%, The Jerusalem Post reports...
coronavirus, israel, unemployment, rate, report
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2020-39-01
Wednesday, 01 April 2020 06:39 PM
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