Reserve Soldiers’ Absence Costs Israeli Economy Up to 68,000 Shekels Monthly Per Soldier

A new report from the Chief Economist of Israel's Ministry of Finance, Shmuel Abramzon, reveals that the economic cost of a reservist soldier’s absence from work can reach up to 68,000 shekels per month for soldiers aged 31 to 39. The report analyzes the characteristics of reservists absent from employment due to military service and the broader economic impact on the Israeli economy.

The data shows that the burden of absence mainly falls on Jewish non-Haredi men aged 25 to 44, who make up about 83% of those absent despite representing only around 36% of the workforce. Reservists differ from their non-serving peers in several ways: they have a higher proportion of students (13% versus 6%), more fathers of young children (63% versus 51%), and fewer self-employed workers (8% versus 14%).

Additionally, reservists earn approximately 42% more than their non-serving counterparts. The report emphasizes that the cost of reserve service extends beyond the individual’s absence, affecting households, spouses, and career or educational trajectories. Updated estimates place the monthly economic cost of reserve service at about 39,000 shekels for men aged 22 to 30 and 68,000 shekels for those aged 31 to 39, significantly higher than previous estimates.

With around 60,000 reservists serving monthly in recent months, the Bank of Israel calculates the total economic cost to be approximately 2.3 billion shekels per month.