Ultra-Orthodox Employment Gap Threatens Israel's Economic Future, Study Warns
Translated & summarized from TheMarker by baba
A study by the Israel Democracy Institute estimates the National Insurance Institute could lose up to 45 billion shekels by 2049 due to low ultra-Orthodox employment. The Ministry of Finance may raise insurance contributions for non-working men. The core economic problem is the low employment and lack of core studies among ultra-Orthodox men, impacting their wages and Israel's future economic stability.
The story in 4 lines · by baba
- Ultra-Orthodox employment gap could cost Israel's National Insurance Institute up to 45 billion shekels by 2049.
- The Ministry of Finance may increase insurance contributions for ultra-Orthodox men not in the workforce.
- Low employment and lack of core studies among ultra-Orthodox men lead to very low wages.
- The economic future of Israel is threatened if ultra-Orthodox employment and salary levels do not improve.
A study by the Israel Democracy Institute estimates that the National Insurance Institute could lose between 40 to 45 billion shekels by 2049 due to the ultra-Orthodox community's low employment rates. The Ministry of Finance is expected to recommend increasing National Insurance contributions for yeshiva students and those not working.
The previous "change coalition" had pledged to pass a conscription law for ultra-Orthodox men as a first step. While the fate of such a law is uncertain, a more significant economic issue is the low rate of employment among ultra-Orthodox men and their lack of core curriculum studies. This results in very low wages and productivity when they do enter the workforce. The study suggests that without improvements in employment and salary levels for this demographic, Israel's economy faces an uncertain future.
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