Israel's Broad Unemployment Rate Rises to 4.4% in September
Translated & summarized from Calcalist by baba
Israel's broad unemployment rate rose to 4.4% in September, the highest since early 2025 outside of conflict periods, affecting 203,800 people. This increase is attributed to holiday proximity, with a drop expected in October. The classic unemployment rate also increased to 3.2%. The employment rate saw a slight rise to 60.4%, remaining below pre-war levels due to reserve duty and tourism sector issues.
The story in 6 lines · by baba
- Israel's broad unemployment rate climbed to 4.4% in September, impacting 203,800 individuals.
- This figure is the highest recorded since early 2025, excluding periods of military conflict.
- The rise is attributed to the timing of summer holidays and the High Holidays this year.
- A decrease in unemployment is expected in October as education sector workers return to jobs.
- The classic unemployment rate increased to 3.2% in September.
- The employment rate rose slightly to 60.4% but remains below pre-war levels.
Israel's broad unemployment rate increased by half a percentage point to 4.4% in September, up from 3.9% in August. This rise, which translates to 203,800 individuals in September compared to 179,400 in August, marks the highest figure since the beginning of 2025, excluding periods of military conflict. However, experts suggest this increase is likely temporary, attributed to the proximity of the summer vacation and the High Holidays this year, which impacted hiring and job searching. A decrease to around 4% is anticipated in October's data as education sector employees return to work.
The classic unemployment rate, measuring those actively seeking work, also saw an increase from 2.9% (131,000 people) in August to 3.2% (143,800 people) in September. Despite this fluctuation, the rate remains exceptionally low for a labor market characterized by frictional unemployment, which is the minimum unemployment resulting from job transitions.
The broad unemployment rate, which includes classic unemployed individuals, those on unpaid leave, and discouraged workers, reached its peak at 16.6% during Operation "Protective Edge" in March, comparable to COVID-19 lockdowns, and stood at 6.8% in April. By June, it had returned to a pre-war normal level of 4%.
Meanwhile, the employment rate, excluding those on unpaid leave, edged up from 60.2% in August to 60.4% in September. This figure had dropped to 51.9% in March during the height of the conflict. Current fluctuations reflect the ongoing wartime routine, hovering between 60% and 61%, but have not yet returned to the pre-war levels of 61%. The article emphasizes that the employment rate, rather than the unemployment rate, is the key indicator of economic activity, noting that its difficulty in returning to normal reflects the high rate of reserve duty call-ups and the crisis in the tourism sector.
