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Half unemployed >www.jpost.com
>Central Bank: Half of Israel's work force not active in labor market
>Mati Wagner
>
>Jul. 28, 2002
>
>About half of Israel's potential work force of 4.8 million aged 15 to
>64
>did not work and only 255,000
>of them were actively searching work in the first quarter of the year,
>according to a report by Bank of
>Israel. While many developed countries have made employment reforms,
>Israel
>has taken no action,
>said the report.
>
>The Bank recommended fiscal cuts coupled with employment policy reform
>based on the Wisconsin
>Plan, which was implemented by the Clinton administration in the 90's
>to
>encourage higher employment
>by cutting benefits to the unemployed.
>
>Cutting benefits received by the unemployed in the form of discounts
>and
>direct payments serve as an
>incentive to actively search work.
>
>The government postoned till 2004 implementation of the Tamir
>committee
>recommendations for
>employment reforms, given in 2001.
>
>All countries that reformed employment policy improved employment
>level,
>which measures the
>amount of workers relative to the population aged 15 to 64. Israel's
>employment level of about 50 to 60
>percent is low in comparison to other developed countries. Britain,
>Austria, Denmark and New
>Zealand, that have all implemented reforms in employment policy,
>enjoyed an
>employment level of
>about 72% of total work force in 2000.
>
>The G5, which is composed of the US, Britain, France, Germany and
>Japan,
>employs 70%. The
>Organization for Economic Cooperation and Development (OECD), which
>represents about 30
>developed countries including Greece and Turkey, employed 67%.
>Figures do
>not include military
>personnel.
>
>The report listed reforms that have been accepted by developed
>countries to
>combat unemployment.
>
>They include subsidizing salaries instead of giving dole, making
>unemployment conditional upon
>actively searching work and reducing income taxes for low income
>workers
>BOI also advised
>discouraging the use of foreign workers by mandating a minimum wage
>and
>social security benefits for
>them. This will eliminate the economic incentive for employing
>foreigners
>and irradicate unfair
>treatment. The present policy of deportations and detentions of
>illegal
>workers coupled with immigrant
>restrictions are inaffective because the incentive remains, said the
>report. Israel's foreign workers made
>up 12.8% of the potential worker force in 1999, much higher than the
>OECD
>average of 5.3% Special
>programs aimed at specific segments of the population must also be
>used.
>Cutting aid to
>one-wage-earner families will encourage Muslim women to join the work
>force. Figures show that only
>14% of Muslim women in the potential work force are employed compared
>to
>70% of the Jewish
>female population.
>
>The haredi (orthodox religious) population can be better prepared by
>changing existing school
>curriculum and offering job placement. The recent passing of the Tal
>Law is
>a positive step toward
>employing more haredis, said Dr. Daniel Gottlieb, BOI researcher. The
>high
>level of haredis that do not
>work causes a drop in the level of employed males in Israel to 68%
>compared
>to the OECD average of
>76% in 2000.
>
>The report advised using private job placement agencies with special
>expertise and better familiarity
>with the job market, especially the hi-tech market. They should be
>given
>financial incentive to find work
>for the unemployed. Job placement should work in tandem with
>occupational
>training courses to
>coordinate efforts.
>
>In order to improve the employment level of weaker segments in the
>policy,
>the BOI recommended
>changes in the educational system that will lead in the long term to a
>better educated work force. It also
>suggested improving transportation from the periphery to the large
>cities
>that are usually located in
>central Israel.
>
>The unemployment rate, as defined by the amount of unemployed actively
>searching work, is growing.
>According to Central Bureau of Statistics figures, it has reached
>10.6%.
>--- End forwarded message ---
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