Approximately 960,000 Israelis filed for job requests by the end of May - this is according to a report published Tuesday by the Israeli Employment Service.
According to the report, Israel is suffering from troubling unemployment figures due to the coronavirus pandemic that has shuttered the economy for two months, and the prolonged lockdown imposed on the population.
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Independent business owners protesting in Tel Aviv over the government response to the coronavirus-triggered economic crisis
(Photo: Tal Kirshenbaum)
The crisis could cause peak unemployment rates, Israeli news outlets reported.
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Small buisness owners protest in Eilat amid coronavirus induced economic crisis
(Photo: Meir Ohion)
At the same time, the number of available jobs has decreased dramatically, with low-paid workers suffering the most from the economic crisis.
In February, before the pandemic, Israel’s unemployment rate stood at 3.9%. By the end of April, at the height of the crisis, the rate of unemployment hit a staggering 27.5%.
May ended with an unemployment rate of 23.5%, which amounted to around 960,000 Israelis looking for employment amid the newly reopened economy.
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Israelis employed in the tourism sectors protest the closure of the country to foreign visitors
(Photo: Ohad Zwigenberg)
The Employment Service warned that the sharp economic shift will lead to a decline in the bargaining power of workers, an expected decline in wages - both medium and long term - and an increase in underemployment rates for several groups, most notably those earning low wages.