According to the August 2022 Central Bureau of Statistics Labor Force Survey, released today, Israel’s employment rate fell from 60.9% in July to 61.6% in August, among people over the age of 15 in Israel. Seasonally adjusted, the employment rate went from 61.1% in July to 61.5%. This figure, however, included 0.4% of the population (about 16,800 people) who were absent from work the whole week of the survey, i.e. they are technically employed but in practice she currently has no job.
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The figures represent a substantial increase in the employment rate compared to the period of the Covid-19 pandemic, at the height of which the proportion of people in Israel with jobs fell to 57.7%. In fact, the current employment rate is even higher than in 2019, and the last time such a high rate was recorded was in August 2018, exactly four years ago, when, seasonally adjusted, 61.6% of the population over the age of 15 had a job, ie only 0.1% more.
Nevertheless, the unemployment rate also increased in August, from 3.7% in July to 4.1%. Unemployed is defined as being in the labor market (i.e. actively seeking employment) but not actually employed. The increase contrasts with the employment rate, but remains at a level considered to be very low.
It seems that the Israeli economy has returned to full employment, at least in Israeli terms. This is all the more impressive considering the country’s relatively low inflation rate, which fell in August to an annual rate of 4.6%, thanks to lower fuel prices. There is often a trade-off between the employment rate and the inflation rate, but the Israeli economy is proving robust enough to stay on the positive side of both measures.
Published by Globes, Israel business news – en.globes.co.il – on September 19, 2022.
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