Coronavirus unemployment crisis deepening for Arab-Israelis

As the economy gradually returns to normal following months of strict government restrictions, new data suggests that Israel's Arab minority may be hit hardest in the latter stages of the coronavirus fallout. Among more than 1,027,000 new unemployment benefit applicants during March and April, approximately 190,000 (18.6%) were Arab-Israeli citizens, according to the Israeli Employment Service. While the figure remains below their overall share of the Israeli population (19.6%), a worrying trend was identified during the two-month period. In March, approximately 17.3% of new applicants for unemployment benefits were Arab-Israelis, but their share among new applicants jumped to some 24.9% in April. While the Employment Service believes the significant increase may be explained by the concentration of Arab-Israeli workers in certain industries that were impacted at a later stage, it also suggests that different population groups suffered asymmetrical harm at different stages of the outbreak. A major difference is identified between the gender of Arab-Israeli and Jewish unemployment benefit applicants. Among Arab-Israelis, 57.8% of new applicants in March and April were men and 42.2% were women. The share is reversed among Jewish applicants – 41.2% were men, and 58.8% were women. The difference between the sectors is largely attributed to the relatively low participation of Arab women in the workforce. Data published by the Employment Service also showed that young Arab men were most affected by dramatic changes in the workforce. Among all new Arab-Israeli claimants, 50.7% were aged 20-34, compared to 42.6% prior to the coronavirus outbreak in January and February. A more modest increase was identified among Jewish claimants of the same age, rising from 40.4% before the outbreak to 44.4% during March and April. Employment Service data also showed an especially high rate of income support claims among the Negev Bedouin population. Some 11.7% of Negev Bedouins claimed income support during March and April, compared to 5% of the wider Arab-Israeli sector and 3.55% among the general population. “We are examining the changes in the characteristics of jobseekers, according to different groups in society, with the aim of adapting the Employment Service's plans to the needs of specific populations and to make operations more efficient,” said Employment Service CEO Rami Garor. “After years during which the Employment Service has succeeded to dramatically reduce the rate of income support claimants in Israel through its Employment Circles program, and to reach tremendous achievements in assistance, all of this could be negatively impacted. Recovering from this will be a complex task. Special attention must be paid to this when determining employment policies.” A mid-2019 report published by the Labor Ministry noted that employment among ultra-Orthodox women and Arab men had increased significantly in recent years, with approximately 76% of both population groups now employed, just below Israel's then-national average of 78.3%. Arab women and ultra-Orthodox men remained the two population groups struggling to integrate into the Israeli workforce, the report stated. Only 38.2% of Arab women and 50.2% of ultra-Orthodox men were employed. “As the crisis continues, its impact on the make-up of jobseekers will continue to change,” said Garor. “Already at this stage, we can see that the rate of income support claimants is higher among the Arab population.”

Coronavirus unemployment crisis deepening for Arab-Israelis

Data published by the Employment Service also showed that young Arab men were most affected by dramatic changes in the workforce.

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Coronavirus unemployment crisis deepening for Arab-Israelis

Data published by the Employment Service also showed that young Arab men were most affected by dramatic changes in the workforce.

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