Israel-Gaza War, Israeli Economy

New data: How much of the Israeli economy is shut down?

Since the outbreak of the war, reserve callups and civilian evacuation have led to multiple furloughs and resignations. The Labor Ministry has the numbers.

Workers. Illustration. (Photo: Shutterstock)

With the war now in its fourth week, the Labor Ministry published data this morning (Thursday) providing an economic assessment of the number of people unable to work due to the war and its effects on the labor market.

According to the ministry’s data, since the beginning of the war, 46,004 workers have been fired (30%) or furloughed (70%). Relative to the equivalent period in 2018, the numbers show an increase of 150%.

Some 760,000 people are currently not working due to being in the reserves, residents of the Gaza Perimeter who were evacuated from the region, and parents of children who cannot make it to work – all told, some 18% of the workforce.

The sectors that were hardest hit due to the war, to the tune of 100%, are travel agencies and touring companies, art and entertainment, archives and museums. Other sectors that have been hit are construction, renovation, retail sales in clothing, leather goods, textiles, and shoes – all of them suffering a hit of 50%.

Labor Minister Yoav Ben Tzur, who approved the bringing of foreign workers into the country to replace the workers from Gaza and the Palestinian Authority, said that “the situational picture of the economy helps us direct resources to the places where response is needed, among other things in expanding activity hours in the needed sectors. In addition, we approved the bringing of 5000 foreign workers from countries from around the world to solve the distress of Israeli agriculture and help that sector continue to function. We will continue to provide a response in all the needed places.”

Yisrael Ozan, Director-General of the ministry, added that “the Labor Ministry conducts ongoing analyses in order to best be prepared during wartime, to ensure that employers are preserving workers’ rights at this time and to send in workers where they are lacking. The Labor Ministry is fully enlisted in favor of the labor market in Israel and we are currently examining employment programs for the evacuees in the hotels in order to maintain the employment and functional continuity of the economy.”

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