Study Finds Limited Progress Integrating Haredi Men into Israeli Workforce

A new study by the Aaron Institute for Economic Policy at Reichman University reveals a complex and concerning picture regarding the integration of Haredi men into Israel's workforce, despite significant government investment. While Haredi women have seen a substantial rise in employment, Haredi men's progress is marked by slow advancement, stagnant working hours, and a widening wage gap. The study focused on the primary working-age group (25-64), noting that Haredim now constitute 11% of this demographic, up from 8% in 2014.

In contrast to Haredi women, whose employment rate jumped from 69% to 82%, Haredi men's employment rate rose only moderately from 48% in 2014 to 56% in 2023, before dipping to 54% in 2024. Furthermore, Haredi men worked an average of 37 hours weekly over the past decade, compared to 45 hours for non-Haredi Jewish men. This disparity translates directly into income, with Haredi men earning an average of NIS 10,600 monthly in 2023, about half the NIS 21,000 earned by non-Haredi Jewish men. The hourly wage gap also widened, with Haredi men earning 64% of non-Haredi Jewish men's hourly wage, down from 68% a decade prior.

The research specifically examined men aged 30-34, who were expected to be primary beneficiaries of the approximately NIS 1.7 billion invested in higher education and technological training programs for Haredim between 2011 and 2022. Despite a near doubling of Haredi men in this age group over the decade, key metrics showed minimal improvement. Employment rates saw only a slight increase, working hours remained largely unchanged, and wage gaps actually expanded. A sole positive development was a rise in Haredi men employed in high-tech, from 3% to 11%, though this did not significantly reduce overall wage disparities.

Researchers expressed concern over the effectiveness of government programs, with Dr. Hila Axelrod, Director of the Center for Economic Policy of the Haredi Society at the Aaron Institute, stating that Haredi men are primarily integrating into lower-quality employment that exacerbates rather than closes gaps. She warned of significant economic and social costs, including increased poverty and strain on welfare systems. The study highlights the need for a fundamental shift, emphasizing early education in core subjects like math and English, and a coordinated, strategic approach across government ministries to set clear goals for education, employment, and wage gap reduction.

Experts warn that the economic cost of not integrating Haredi men into the workforce could reach NIS 6.7 trillion in lost output over the coming decades. They stress that effective integration requires a deep connection between the education system, foundational skills, higher education, vocational training, and community incentives, starting at a younger age. Delaying action, they caution, only exacerbates the problem and limits future solutions.