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Worsening Economic Woes: More Israelis Laid Off than Returning to Work

July 27, 2020

by: Billy Frenkel

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The unemployment rate currently stands at 21.2% (illustrative).

Monday, 27 July 2020 | The National Employment Service reported on Tuesday that the number of people who were laid off in 24 hours was more than three and a half times the number of people who returned to work after being placed on unpaid leave due to the coronavirus lockdown.

The review said that 3,704 Israelis reported having been fired or placed on unpaid leave, compared to 1,033 people who reported returning to work. 

Since the government began lifting some restrictions on the economy at the end of April, 407,360 people have reported returning to work while 172,408 people filed for unemployment benefits.

The unemployment rate currently stands at 21.2%, meaning 862,438 people are seeking employment, among them 576,277 Israelis on unpaid leave.

Employment Service Director Rami Garor said last week that this rise in unemployment probably mostly consists of furloughed workers who have been subsequently fired because of economic difficulties stemming from the pandemic as well as temporary workers usually laid off during the summer months.

Garor also said that the employment service cannot offer job seekers vocational training courses because the government has yet to pass a budget.

Meanwhile, a recently published National Bureau of Statistics report showed the number of available positions in the labor market grew in June after many businesses reopened as restrictions were lifted.

June saw some 52,900 available positions compared to only 46,700 in May. However, this trend is expected to see a downturn in July due to the government reviving several restrictions on the economy.

Posted on July 27, 2020

Source: (Ynetnews originally published this article on July 21, 2020. Time-related language has been modified to reflect our republication today. See original article at this link.)

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