Karnit Flug 370.
(photo credit: REUTERS)
Unemployment in 2014 will remain at 6.2 percent, the same as the average
rate in 2013, the Finance Ministry told the Knesset Finance Committee on
Although 6.2% is a slight rise from the current 5.9%
unemployment rate, it remains a historically low level.
In November, Bank
of Israel Governor Karnit Flug predicted that the jobless rate would soon rise,
a result of moderate global growth and struggling exports. The unemployment rate
at the time was 6.1%.
“An assessment of the composition of the labor
market shows that growth in the number of employed persons is concentrated in
the public services, while employment in the business sector has been at a
standstill for a long time,” Flug said.
The Finance Ministry, on the
other hand, predicted that world growth was picking up and that exports would
hold their own in an improving global trade environment.
population may not feel as rosy as the ministry projections. The Central Bureau
of Statistics on Tuesday reported that within the consumer confidence index, the
portion dealing with expected unemployment was “the most significant” in the
“The change in the balance shows a deterioration in unemployment
expectations, and its level fell from minus-36% in October to minus-50% in
November,” the statistics bureau said. The index, from a scale of minus- 100% to
100%, indicates expected deterioration or improvement in certain areas of
economic activity, with zero indicating no change.
The overall consumer
confidence index for November stood at minus-29%, down from minus-24% in