Israel’s employment rate rises as economic recovery continues

Israel’s employment rate saw a sharp increase in the first half of November, apparently reverting to the rate before the COVID-19 pandemic.

However, the average monthly salary of employees has fallen slightly in recent months.

The average monthly salary of Israelis has fallen to 11,667 ($ 3,710) in recent months, from NIS 11,772 ($ 3,743) in July and NIS 11,799 ($ ​​3,752) in August, the Central Bureau of statistics (CBS).

Yet the unemployment rate in the first half of November was down to 6.7% from 7.3% in the second half of October.

The employment rate jumped to 62.1% – nearly 4.1 million people employed – which was roughly the rate in January and February 2020.

In a previous CBS survey, Israel’s employment rate in the second half of October was 59.25%, Haaretz noted.

The improvement in the broad employment rate is mainly due to a drop in the number of people looking for work, as the economy recovers and the demand for workers soars.

At the same time, the eligibility of workers aged 45 and over for unemployment benefits will soon expire completely, which could be a significant trigger for the sharp increase in the employment rate, Haaretz said.

The Organization for Economic Co-operation and Development has forecast that Israel’s unemployment rate will remain above pre-pandemic levels until the end of 2023, The Times of Israel reported.

The Israeli government also announced last month that it would increase the monthly minimum wage by 6,000 NIS ($ 1,912), or about 33 NIS ($ 10.5) an hour by 2025.