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September 4, 2015 / 20 Elul, 5775
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Posts Tagged ‘unemployment’

Israeli Unemployment Dropped in February

Friday, March 27th, 2015

Unemployment in Israel dropped to 5.3% in February, according to the Central Bureau of Statistics.

In January the number was 5.6% percent.

Jordanians to Work in Eilat Hotels

Sunday, June 29th, 2014
Jordan’s rate of unemployment is high in the country’s south. But a proposal by the Israeli government is expected to help alleviate some of that unemployment. The Israeli cabinet on Sunday, June 29, approved a proposal to employ up to 1,500 Jordanian workers in hotels in Eilat.

According to the proposal, the workers would be day workers who return to Jordan at the end of the working day and would be employed in cleaning, dishwashing and room service in Eilat hotels. The proposal aim to solve the manpower crisis in Eilat hotels, which is expected to increase during the peak of the summer tourism season.

The Israeli Tourism Ministry also noted that the arrangement will contribute to the relationship between Israel and Jordan, which signed a peace treaty in 1994.

Tourism Minister, Dr. Uzi Landau stated that: “We have decided to advance the issue of work visa approvals for Jordanian workers in Eilat out of a desire to strengthen the hotel industry. There is a serious crisis in manpower in Eilat hotels that will only intensify as the summer peak season approaches.”

“This crisis could significantly damage the Eilat tourism industry, harming the income and jobs of tens of thousands of families, primarily from the less affluent strata of society. The importance of the tourism industry is in its ability to create jobs that lead to reduced economic and social gaps. An approval of the proposal will provide an answer to the labor shortage and I am convinced that the process will even strengthen the peace between Israel and Jordan,” added Landau.

There are 12,000 hotel rooms in Eilat, and thousands of workers are required to cover positions in cleaning, dishwashing and room service. The situation is particularly acute given the lack of urban infrastructure in the city that could help with the recruitment of employees. Several short-term solutions have been used to solve this problem of providing workers for the hotel industry in the resort.

As a result of a prior agreement signed between Israel and Jordan, there are currently up to 300 day workers from Jordan working in different areas in Eilat. This agreement has been working satisfactorily according to the Tourism Ministry since the year 2000 with about 170 Jordanian workers crossing into Eilat and returning home at the end of the day.

The modern city of Eilat was established in 1950, with the tourism industry developing in the city towards the end of the 1960’s. A leading tourist city today, Eilat is located on the southernmost tip of Israel, with its famous coral reef and unique marine life running along its Red Sea shores.

Israel’s Unemployment Rate Drops to Record Low in February

Monday, March 31st, 2014

Israel’s unemployment rate has dropped to a record low in February 2014, down to 4.9% compared to 5.4% in January for people aged 25-64.

According to a seasonally adjusted study released by the Central Bureau of Statistics (CBS) last week, over 3.5 million people out of 8.1 million people are employed in Israel. The study found that 216,000 people were unemployed February, approximately 3,000 fewer than in January.

Among males aged 25-64, the employment rate rose to 81.1% and among females aged 25-64, the employment rate rose to 71%. The CBS survey found that unemployment also declined for those people aged 15 and over, from 5.9% in January to 5.8% in February. The employment rate for that age group rose to 60.5% in February.

Four out five people (ages 25 to 64) are currently employed, with participation in the labor force rising to a record high of 80% in February according to CBS data.

In addition, the CBS survey found that among employed men, 87% work full time and 13% work part time. Among employed women, 67% work full time and 33% work part-time.

The number of employed people who usually work full time (35 hours or more per week), increased by 0.8% compared with January – an additional 21,000 employed people.

Israel’s unemployment rates have been trending low the past two years, a source in the Central Bureau of Statistics told Tazpit News Agency.

Another Reason to Make Aliyah :Israel’s Jobless Rate Drops

Monday, September 30th, 2013

The unemployment rate in Israel fell to a 20-year low in August, and unlike in the United States, participation in the job market is increasing, according to the latest data from the Central Bureau of Statistics

The jobless rate in August was 6.1 percent, compared with a 7.3 percent in the United States. The rate for September is expected to remain the same.

However, the official  unemployment rates do not include discouraged workers who have settled for part-time jobs or have given up looking for work.

Forbes estimated in June that the “real” jobless rate is more than 14 percent, while in Israel, increased participation in the labor market indicates the opposite.

The American jobless rate also is being driven down by “baby boomers” retiring, while the higher birth rate in Israel creates a larger labor pool as well as establishing the basis for further for more growth through consumption.

High-tech still is the rage in Israel, and none other than U.S.-based Intel almost always is looking for workers.

It also has saved the jobs of 800 workers of Micron Technology employees, which decided last December decided to close down its Israeli operations. Intel will take over Micron’s fab plant and incorporate all of the workers into its work force.

Does a Minimum Wage Really Help the Poor?

Wednesday, August 21st, 2013

In the second part of the Goldstein on Gelt podcast this week, Professor Walter E. Williams, economics professor at George Mason University and author of Race and Economics: How much can be blamed on discrimination? discusses why setting a minimum wage is not the ideal solution for unemployment and poverty. Listen to more of Professor Williams’ unique ideas about the economy on this week’s show.

Tale of 2 Debts: Moody’s OKs Israel’s A1 Rating; US Sinks in Red

Thursday, August 15th, 2013

Moody’s Investors Service affirmed the Israeli government’s A1 debt rating Thursday and credited Israel’s stable economy, while in the United States, an economist claims that the national debt is a staggering $70 trillion, 3.5 times the admitted amount.

Moody’s said it is upholding Israel’s current rating because of the resilience of the economy, expectation of a lower debt and favorable diplomacy with, particularly with the United States.

“Growth in the small, open economy has been sustained even with shrinking demand from Europe, a key trading partner,” according to Moody’s. It cited Israel as being a haven for entrepreneurs and a leader in the high-tech industry.

Another strong factor in Israel’s favor is the export of natural gas, which will help reduce the national debt, reduce taxes and create jobs.

On the negative side is “Iran’s nuclear program being the largest threat to Israeli territorial security,” Moody’s added. “However, a certain status quo has been achieved by maintaining a strong military deterrent, close ties with the US and friendly relations between the Israeli, Egyptian and Jordanian armies, It also credited the resumed talks with “helping to reduce Israel’s international diplomatic isolation.”

Coincidentally, IBM announced on Thursday it is buying up the Israeli Trusteer data security company for an estimated $750 million. Previously this year, foreign companies have purchased several Israeli firms for a total of more than $3 billion.

Israel not only has been the eye in the center of the Middle East hurricane that has swept through Arab countries but also has one of the strongest and most stable economies in the Western world.

In the United States, a poll released Thursday by Gallup shows that President Barack Obama’s economy rating is at an all-time low of 35 percent, reflecting large scale unemployment that is not reported because so many Americans have given up looking for work.

In addition, Fox News reported that University of California at San Diego Prof. James Hamilton estimates that the U.S. national debt is $70 trillion, 3.5 times the official debt of $16.9

That works out to approximately $175,000, plus change, for every man, woman and child. And that does not include a tip for the president.

“Hamilton believes the government is miscalculating what it owes by leaving out certain unfunded liabilities that include government loan guarantees, deposit insurance, and actions taken by the Federal Reserve as well as the cost of other government trust funds,” Fox reported. “Factoring in those figures brings the total amount the government owes to a staggering $70 trillion.”

Hamilton is not the first economist to estimate the debt to be so high, but the government prefers its own figures, for obvious reasons.

Eventually, say economists, the Treasury’s printing presses will be working overtime, leading to high inflation and interest rates, a double-whammy that can cause “stag-flation,” a recession with inflation.

The conclusion is that it would be wise to book early for a one-way ticket to Israel.

Fisher’s Assessment: ‘The State of Israel’s Economy is Very Good’

Sunday, April 28th, 2013

Yoram EttingerStraight from the Jerusalem Boardroom #178, April 26, 2013:

The following summary of the April 23, 2013 address by Stanley Fisher, Bank of Israel Governor, highlights economic indicators which reflect the relative strength of Israel’s economy during the global economic meltdown.  These indicators have enhanced global confidence in the long-term viability of Israel’s economy.

Far from being isolated, Israel has become an attractive partner for global trade, an exciting site for astute investors and giant high tech companies.  Israel’s economic performance is praised by the three leading global rating companies and the International Monetary Fund.

Here is are the key points from Fisher’s remarks:

1.  “The state of Israel’s economy is very good, not excellent as it was in recent years.”

2.  In 2013, Israel’s economy is expected to grow 3.8% – more than most OECD countries. 1% growth will derive from offshore natural gas production, which will substitute more expensive imported energy, lower overall imports and production costs and expand employment.

3.  Global trade is expected to expand only 3.6% during 2013, which does not bode well for Israel’s exports (40% of Israel’s GDP).

4.  Unemployment – 6.5% – is the lowest in thirty years.  Unemployment among the 25-64 age groups is 5.7%.  Apparently, more young ultra-orthodox Jews and Arabs are integrated into the job market.

5.  In 2013, the interest rate – 1.75% – attracts overseas investors in State of Israel Bonds.  In 2012, inflation rate was 1.3%.

6.  In 2003, Israel was burdened by more than 5% budget deficit, which increased interest paid by Israel on international borrowing. The deficit was eliminated, when Israel adhered to a balanced budget policy, which facilitated Israel’s solid economic performance during the global economic meltdown.  However, the global crisis slowed down Israel’s economic growth, decreasing tax income, which increased the budget deficit to 4% in 2012.  The government goal in 2013 is a 3% budget deficit.

7.  During the 1970s and 1980s, the defense budget was over 20% of GDP.  The impressive growth of GDP has diminished the ratio of the defense budget – which is the largest share of the national budget – to 7% of GDP in 2012, the lowest since 1954!

8.  In 2003, the public debt to GDP ratio was 99.3%; in 2012 it was reduced to 73.4%.

Visit The Ettinger Report.

Printed from: http://www.jewishpress.com/blogs/the-ettinger-report/fishers-assessment-the-state-of-israels-economy-is-very-good/2013/04/28/

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