Israel’s Next Growth Engine May Come From the Haredi Middle Class

Israel’s economic debate often focuses on inflation, labor-market changes, and Bank of Israel policy, but this article argues that a larger shift is already reshaping the country’s future: the growth of the Haredi middle class. The writer says this group now numbers about 1.45 million people and is no longer a marginal phenomenon.

According to the article, more young Haredim are pursuing academic and vocational studies, joining the workforce, launching businesses, and buying homes. Women are also entering employment in large numbers, and Haredi entrepreneurs are creating new companies, which is increasing demand for more advanced financial services.

The article cites 2024 data showing Haredi women’s employment rate at about 81%. It also says Haredi household income rose by about 17% between 2015 and 2022, while monthly expenses increased by only 11%, indicating stronger financial capacity and rising need for credit, savings, investment, housing, and pension products.

The author argues that banks can no longer treat the Haredi public as a single group that simply needs adapted products. Instead, the sector is described as more diverse than ever and in need of professional, accessible services that reflect customers’ lifestyles, family structures, income patterns, and goals. The piece concludes that the Haredi middle class is a national priority and a major growth engine, one that can expand productivity, tax revenues, and social and economic resilience. The article is signed by Vered Abitan, deputy CEO and head of the retail division at Mercantile Bank, and notes that the figures are based on the 2025 Haredi Society Yearbook of the Israel Democracy Institute.