The unemployment rate in Israel plummeted to 2.8% in July, marking a significant decline from 3.1% in June, according to the Central Bureau of Statistics. This is the lowest unemployment rate the country has seen in years.
Last November, following the mass mobilization of army reservists at the start of the war, the unemployment rate initially stood at 2.8% but was later adjusted to 3% in revised figures.
The current low unemployment figures are partly attributed to many Israelis being engaged in army reserve duty, which means they are not available for civilian employment. This situation has created a heightened demand for workers and exacerbated workforce shortages, contributing to a rise in real wages despite a general economic slowdown.
The labor force participation rate for Israelis aged 15 and older remains stable at 63%, a slight increase from 62.9% the previous month. The employment rate also saw a minor uptick to 61.2%, up from 61%.
While the percentage of employees absent from work due to reserve duty is still high at 9.4%, it represents a significant decrease from the previous month's rate of 15.6%. For men, the impact is even more pronounced, with 22.1% absent due to reserve duty, down from 28.5% the month before.
* The Jerusalem Post contributed to this article.
