The rate of unemployment in Israel remained unchanged in April at 3.4%, the Central Bureau of Statistics announced today. Seasonally adjusted figures even show a slight increase, of 0.1%, in the proportion of those aged 15 and over in the workforce.
The broad unemployment rate, which includes those on unpaid leave, fell last month, to 3.8%, from 4.1% in March. The number of unemployed under the broad definition now stands at fewer than 170,000.
The fall in the broad rate of unemployment marks a return to the level of last September, before the war. The outbreak of war led to more than 400,000 people not going to work, among other things because of the extensive call-up of reserve soldiers, and effect of the war on workplaces, which were forced to put employees on unpaid leave. In the past few months, reservists and employees on unpaid leave have returned to work, or found other jobs. Only 7% of those temporarily absent from work in April were absent because of military service in the reserves, down from over 20% in March.
Together with the data on vacant jobs released last week, the figures indicate a tight labor market. Seasonally adjusted, there were 137,000 job vacancies in April, up from 134,000 in March. The manpower shortage is mainly in commercial and retail, such as the hospitality and food industries, and in construction. In the technology sector, there was no significant change in the number of job vacancies.
The construction industry is suffering badly from a shortage of foreign workers, because of the war in the south, leading to upward pressure on wages, which is liable to lead in turn to higher costs of housing, both for purchase and rent.
Published by Globes, Israel business news – en.globes.co.il – on May 26, 2024.
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