Employment Rate in Israel Declines Below 60%
The employment rate in Israel has dropped to 59.9% in October, marking a significant decline from 60.4% in September, according to the Israeli Central Bureau of Statistics (CBS). This is the first time the employment rate has fallen below the 60% threshold since March, highlighting a noticeable slowdown in the labor market. The peak of 60.9% was recorded in July, suggesting a potential recovery that has since faltered due to ongoing conflicts in the northern regions of the country.
The economic newspaper Calcalist reports that the decline is largely attributed to the impact of the ongoing conflict, particularly in northern Israel, where repeated rocket attacks have led to an increase in job seekers. While the overall labor market shows signs of stabilization, the northern areas are facing significant challenges. The broader unemployment rate, which includes those on unpaid leave and those who have stopped looking for work, decreased slightly from 5% in September to 4.8% in October. In contrast, the classical unemployment rate, which only accounts for those actively seeking work, fell from 2.9% to 2.7% during the same period.
Despite the decline in the employment rate, the number of job openings remained stable at 135,700 in October, a slight increase from 135,500 in September. The vacancy rate also saw a minor decrease, standing at 4.32% in October compared to 4.34% in September. This stability in job openings indicates a structural gap between available positions and the skills or locations of unemployed individuals, emphasizing the ongoing challenges in matching labor supply with demand.
