Eighteen percent of workers in the Israeli economy were absent from their jobs in October due to the war with Hamas in Gaza, according to a report by the Finance Ministry's chief economist. The report indicates that approximately 764,000 employees were absent from work due to various war-related reasons.
However, these workers still maintain their employment with their respective employers, despite their absence.
Since October 7, Israel has been experiencing a war that has had significant repercussions on the economy and the labor market.
How has the war with Hamas impacted Israel's economy?
As part of the war efforts for Operation Swords of Iron, the IDF initiated a widespread call-up of reservists, and the Home Front Command imposed restrictions on economic activities and education systems. Additionally, residents living in the North and South were evacuated from their homes.
The extensive rocket fire targeting Israel disrupted daily life for Israelis, affecting both consumers and employees. Out of the 764,000 absent workers, 280,000 were unable to attend work due to reservist duty, while 345,000 were absent for various other reasons, such as caring for children or attending to wounded family members.
The sectors hit the hardest were the hospitality and food industries, with 36% of workers absent due to closures or reduced activity. The construction sector followed closely, with 35% of workers affected by site closures and restrictions on the entry of Palestinian laborers from the West Bank. Art and leisure industries experienced a 34% absence rate. Conversely, the local administration sector had the lowest absenteeism rate at only 4%, followed by hi-tech (10%), healthcare (12%), and financial services (13%).
The report also highlights the significant impact on self-employed Israelis, with 33% of small businesses without employees seeing absences from work. In half of these cases, the absence is attributed to decreased business activity.