Occupied Jerusalem- The war on Gaza inflicted heavy losses on the Israeli economy and greatly disrupted the labor market. As is always the case in emergency situations, the 1948 Palestinians are considered the most affected, both on the socio-economic level, and they are the weakest link in terms of high unemployment rates, poverty rates, and food insecurity.
Aside from the fact that many Israelis view the Palestinians of the 1948 as a “fifth column,” constantly subjecting them to “loyalty” tests, and harassing and discriminating against them in various aspects of life, it has been shown that they are exposed to an employment crisis during the war period, as shown by the survey and analysis. Which was conducted by the Research Department of the Bank of Israel.
The examination conducted by the Bank of Israel regarding the labor market situation, unemployment, and unpaid leave – which includes those absent for economic reasons due to the Gaza war – shows a high increase in unemployment rates among 48-year-old Palestinian workers.
Effects of war
The Economic Development Authority’s survey, in partnership with the Arab Economic Forum, headed by Dr. Sami Maiari, revealed disturbing data regarding the impact of the war on unemployment rates and the labor market in Arab society.
To understand the impact of the war on tensions between Arabs and Jews, and on various aspects of employment in Arab society, Professor Meari, a lecturer at Tel Aviv University, said, “We conducted a survey on employment during the war, and the survey was conducted among the adult Arab population, according to a representative sample of 525 respondents.”
According to the poll – which was supervised by the researcher specializing in economic policies, Arnon Barak – the expanded unemployment rate among the labor force in Arab society reached about 15%, compared to 5% among the Jewish labor force in the country, while 5.5% of participants reported that they had been fired from work. During the war for economic reasons.
High unemployment
The survey – a copy of which Tel Aviv Tribune Net received – showed a sharp increase in the percentage of unemployed people in Arab society in light of the ongoing war, as about 55.5% of the survey participants said that they did not work, even for one hour, in the seventh week of the war.
Regarding the reasons for not working, about 9.5% of the survey participants reported that their employer had put them on unpaid leave, while the survey data showed that the overall unemployment rate in Arab society reached 15%.
The general unemployment rate in Israel at the end of last November reached about 5% among the total workforce in the Israeli labor market, according to data from the Israeli Central Bureau of Statistics.
Increased risk
It became clear from the Bank of Israel’s survey that the employment crisis of Palestinian workers from the 1948 war has worsened, as a result of them being suspended from working in the Israeli labor market, or being given unpaid leave until further notice, or due to them not being called to work in light of the decline in economic activity.
For his part, Nathaniel Gomes, correspondent for the economic newspaper “The Marker”, reviews reasons for losing work, such as “absence due to military service in the reserve forces, suspension of studies in schools and universities, and the employee avoiding coming to work due to the state of emergency.”
For all demographic groups, Gomes says, “There was a significant increase in the rate of unemployment and absenteeism from the workplace in October compared to the previous month of September, and perhaps the segment of workers and employees most affected (is that) descending from the Arab community in Israel.”
Gomes added that the impact of the war on the Israeli labor market is not uniform across the branches of the economy, as there are branches and industries that have significantly affected employment more than other industries, which exposes their workers to an increased risk of a decline in employment and employment.
The situation of Arab society
Examining the difference in the rate of absenteeism from work according to population groups, according to the survey conducted by the Bank of Israel, shows that the rate of absenteeism from work in Arab society is higher by about 4.5% compared to Jews.
The gap increases to 8.4% when cases of absence from work due to military service in the reserve forces are excluded, which is of course more common in the Jewish community, while the increase in the percentage of absence from work in the Arab community between both sexes was higher than their counterparts in the Jewish community.
In addition to examining the actual change in interest in work and going to work in the first weeks of the war last October, the survey also points to the difference in exposure of industries and craft workers to the risks of job loss between the Arab community and the Jewish population.
Risk factors
The Bank of Israel distinguishes between two main factors that have harmed economic activity and workers in various branches:
- The first is the decline in demand for non-essential products, especially in the entertainment industries
- The second is a decrease in activity in economic branches due to the lack of workers.
A glaring example of the second factor – according to the Bank of Israel – is the severe shortage and paucity of workers in the building and construction branch, due to preventing the entry of Palestinian workers, and the departure of thousands of foreign workers from the country as a result of the war.
This shortage of workers has led to the partial closure of construction sites and an overall decline in productivity in this branch, which constitutes a risk factor for the employment of workers who can return to their jobs, especially the most affected Arab workers, as they are at risk of losing their jobs.
In addition to the former main workers, there is another risk factor that affects employment, and it relates to Arab workers’ fear of arriving at workplaces in Israeli towns, and employers’ preference for Jews in exchange for not returning Arab workers to their jobs, due to tense relations between Arabs and Jews.
The analysis shows that the risk of low employment in the Arab community is much higher than in the Jewish community, as about 33% of workers in the Arab community work in branches and professions that are exposed to high risks, compared to 14% among the Jewish population.
Food security
The estimates and expectations reported by the Bank of Israel in the survey it conducted were reflected in the “Poverty and Inequality Report” in Israel for the year 2022, which was issued by the National Insurance Institute, last Thursday.
The report showed that 1.98 million people lived below the poverty line, constituting about 20% of the population, noting that about 50% of them are already working.
It is evident from the report reported by Haaretz newspaper that 30.9% of the population in Israel, adults (18 years and above), lived – during the year 2022 – in food insecurity for economic reasons, while the percentage is higher in the Arab community – which has a population of about two million. To reach 62.7%.
