[Israel] Half a million people could be unemployed by 2021

The economic fallout from the novel coronavirus could lead to half a million people being jobless by the start of 2021, according to government officials, Ynetnews reports.

The unemployment rate in Israel has leapt up over the past few months as a result of the economic lockdown imposed on the country in the wake of the COVID-19 outbreak. In mid-April, unemployment hit a record-breaking 27.5 per cent. (Link via original reporting)

Speaking on June 7, government's economy and welfare officials reportedly said Israel's unemployment rate was among the lowest in the world before the coronavirus crisis. For the past four years, the average rate of joblessness was between 160,000 and 180,000, ranging from 3.4 per cent to 4.2 per cent.

The current estimate would see the unemployment increase to around 10-11 per cent by January 2021.

About 250,000 Israeli workers have lost their jobs since the pandemic began and almost a million more were placed on unpaid leave. Although many have since gone back to work, the unemployment total is currently estimated at around 950,000.

Itzik Shmuli - the Welfare Minister - urged the government to promote programs guaranteeing unemployment subsidies, so as not to overwhelm the welfare system, and to employ more aggressive incentives to bring people back into the workforce.

Last week a senior Finance Ministry official reportedly spoke of their hopes for government-funded incentives for employers to help them reinstate workers put on unpaid leave. The official added that those workers who do not return to work in June are likely to remain on a leave of absence for months.

In addition, tens of thousands could potentially lose their jobs in the future. Particularly people employed by businesses which may struggle to rebound from the crisis, like dining, aviation, and tourism.

Many workers still on unpaid leave might not receive their unemployment payment this month as emergency measures applied during lockdown are lifted.

Histadrut - the national labour union centre - petitioned several government ministries to amend the current legislation and secure unemployment benefits for 300,000 jobless in the month of June.

The Finance Ministry would reportedly prefer to encourage employers to reinstate their workers in exchange for a government grant instead of paying monthly unemployment.

The economic fallout from the novel coronavirus could lead to half a million people being jobless by the start of 2021, according to government officials, Ynetnews reports.

The unemployment rate in Israel has leapt up over the past few months as a result of the economic lockdown imposed on the country in the wake of the COVID-19 outbreak. In mid-April, unemployment hit a record-breaking 27.5 per cent. (Link via original reporting)

Speaking on June 7, government's economy and welfare officials reportedly said Israel's unemployment rate was among the lowest in the world before the coronavirus crisis. For the past four years, the average rate of joblessness was between 160,000 and 180,000, ranging from 3.4 per cent to 4.2 per cent.

The current estimate would see the unemployment increase to around 10-11 per cent by January 2021.

About 250,000 Israeli workers have lost their jobs since the pandemic began and almost a million more were placed on unpaid leave. Although many have since gone back to work, the unemployment total is currently estimated at around 950,000.

Itzik Shmuli - the Welfare Minister - urged the government to promote programs guaranteeing unemployment subsidies, so as not to overwhelm the welfare system, and to employ more aggressive incentives to bring people back into the workforce.

Last week a senior Finance Ministry official reportedly spoke of their hopes for government-funded incentives for employers to help them reinstate workers put on unpaid leave. The official added that those workers who do not return to work in June are likely to remain on a leave of absence for months.

In addition, tens of thousands could potentially lose their jobs in the future. Particularly people employed by businesses which may struggle to rebound from the crisis, like dining, aviation, and tourism.

Many workers still on unpaid leave might not receive their unemployment payment this month as emergency measures applied during lockdown are lifted.

Histadrut - the national labour union centre - petitioned several government ministries to amend the current legislation and secure unemployment benefits for 300,000 jobless in the month of June.

The Finance Ministry would reportedly prefer to encourage employers to reinstate their workers in exchange for a government grant instead of paying monthly unemployment.