Dr. Roby NathansonDr. Roby Nathanson

November 28th, 2011November 28th, 2011

The development of employment policies that benefit the labor market, integration of the young in Israel.

"Poverty and income inequality is higher in Israel than in most OECD countries. These poor outcomes are the result of Israel's socio-economic dichotomy. On the one hand there is the general Jewish population where the majority of men and women are at work, living alongside minorities where either the majority of women (Arabs) or men (ultra-Orthodox) are not in paid employment.“OECD 2010, Reviews of Labor Market and Social Policies

Economic and social trendsEconomic and social trendsComposition of the population by group

2008 compared to expected Composition in 2020Ages 25-64

 20082020

Arab Minority16%19%

Ultra-Orthodox6%11%

Other78%70% Source : The Eckstein employment committee, 2011

YearTotalArab

MinorityUltra-

OrthodoxOther

201024.756.959.011.40

2010 Compared to 20071.13.2-0.7-0.6 Source: Bank of Israel, 2010

Poverty rates

Employed Arab population in the work force by industry and gender

 

Arab FemaleArab Male

Total Population

Agriculture1%2%1.26%

Manufacturing7%16%10.97%

Construction 1%27%4.15%

Wholesale and retail trade8%18%10.23%

Accommodation services and restaurants4%4%3.55%

Transport, storage and communications2%9%5.04%

Business activities6%6%11.30%

Public administration4%3%26.76%

Community services6%3%5.34%

Health services13%4%8.00%

Education services47%6%9.68%

Other1%2%3.73%

The Arab minority in the labor marketThe Arab minority in the labor market

Number of Years of schooling by population group, age group 35-44, percentage, (2010)

0

5

10

15

20

25

30

35

40

0 1-4 5-8 9-10 11-12 13-15 16+

Tota l P opula tion Jewish P opula tion A rab P opula tion

The labor marketThe labor market

Type of last school attended, age group 25-34

Type of last school attendedPercentageThousands

Did not attend school0.79%8.6

Primary & Inter-Mediate School5.29%57.6

Vocational Secondary School11.90%129.5

General Secondary School22.92%249.5

Rabbinical studies3.13%34.1

Post secondary Vocational School6.25%68.0

Post secondary School5.08%55.4

Teaching Degree3.10%33.7

Academic40.00%435.5

Other1.55%16.8

Total 1,088.7

The labor marketThe labor market

•The majority of workers have not acquired an academic education

0

20

40

60

80

100

120

140

160

Non Jewish women Non Jewish men Jewish women Jewish men

Non Jewish women

9.99

Non Jewish men

20.02

Jewish women16.18

Jewish men18.38

Total64.57

The number of Arab men expected to join the work force in the coming years is expected to surpass the number of Jewish men.

Annual average Joining rate

Joining the work force, 2008-2015 by age and religion.

Expected developments in the labor marketExpected developments in the labor market

0

20

40

60

80

100

120

140

160

15-24 25-34 35-44 45-54 55-64 65+

men women

A relatively small number of young people are expected to join the labor market in the coming years.

In most age groups the majority of workers joining the work force will be men.

Joining the work force, 2008-2015 by age and sex.Expected developments in the labor marketExpected developments in the labor market

The majority of the young population is not employed nor enrolled in academic institutions. Vocational

programs can focus on this population.Vocational programs can target the age group of 21-

24. Many in this age group are not employed nor at school.

In addition, vocational training must focus on the Arab minority which is expected to comprise a large

share of those joining the work force.In addition to training in the fields of industry and

commerce, vocational training should also include programs in the fields of business services and

personnel services, fields which are growing rapidly.

SummarySummary