Israel’s unusual demographics have created unique and daunting economic challenges, according to recent report issued by the Kohelet Policy Forum, a nonpartisan public- policy think tank.One of those challenges is the low rate of labor participation among populations with high birth rates. The birth-toworker ratio for Israeli Arabs and ultra-Orthodox Jews is of particular concern. Those numbers, if unchanged, will continue to limit long-term economic growth.In 2014, working-age non-haredi Jews in Israel were 42.6 percent of the population.By 2059, that percentage will fall to 28.4%. That means a decrease in working-age people that will compound the problems associated with the rise of low-employment demographics in the those groups.If employment trends remain steady, the decrease in the number of Israeli workers will translate into a 14.5% reduction in per-capita income.The report also cited other potential problem areas imposing potential limits on growth. Among these are public transportation, higher education and the postal system.
