Ultra-Orthodox Education Funding Risks Israel's Future Economic Stability

A debate over a proposed five-year plan for the ultra-Orthodox sector, spearheaded by Aryeh Deri, is focusing on the tens of billions of shekels allocated, overshadowing a more critical question: the quality of education provided. While public discourse, amplified by figures like Likud's Hadas Muchtar, often centers on comparing funding amounts to other sectors or reservists, the core issue is what this investment yields in terms of students' future prospects.

In the 2022-2023 academic year, only 6% of boys in ultra-Orthodox educational institutions were eligible for a matriculation certificate, a stark contrast to the 86% in state and state-religious schools. This educational gap significantly impacts future employment opportunities. In the first three quarters of 2025, the employment rate for prime working-age ultra-Orthodox men was approximately 53%, while for women it was 81%. Even among the employed, the average monthly salary for an ultra-Orthodox worker was 56% of that of a non-ultra-Orthodox Jewish worker in 2023.

This disparity has long-term economic implications for Israel. Ultra-Orthodox children constituted about 26% of Israeli children aged zero to four in 2023. If they lack the skills for well-paying jobs, their growing numbers could become an economic burden rather than a boon. Research indicates that ultra-Orthodox households, on average, receive about 4,000 shekels more per month than they pay in taxes, while non-ultra-Orthodox Jewish households pay about 6,000 shekels more than they receive.

The article argues that the public policy of funding education that does not equip many students for adult self-sufficiency is the fundamental flaw. This leads to a double cost: initial funding for the inadequate education and subsequent funding to address the resulting societal and economic gaps. The potential existential threat lies in an increasingly narrow tax base, with about 93% of income tax revenue coming from the top two income deciles.

Failing to train a significant portion of the population for high-earning professions could strain the economy, potentially leading skilled individuals to seek opportunities elsewhere. Investing in institutions that teach English, mathematics, and vocational skills is presented as a crucial step to ensure economic productivity and national resilience. Conversely, funding educational models that perpetuate these gaps is described as detrimental to Israel's future.