Waiting for turn at Employment Service
Photo: Yaron Brener
Employment Service seeks government intervention
Hundreds of workers are fired each day in Israel due to economic crisis. Employment Service Director General Yossi Farhi says government intervention is needed to solve situation
The global financial crisis is no longer affecting just stocks and number, and in Israel hundreds of workers were dismissed in one day alone.
The Mishmar manpower and security company collapsed on Wednesday and sent home 700 employees, assembly equipment manufacturer Kulicke and Soffa fired 75 workers, and the list goes on.
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"If we reach a state of recession, it is not just the Employment Service's problem. Massive State intervention is needed for infrastructure, factories and credit," Farhi said.
According to Employment Service estimates, Israel will remain in a state of deceleration in the coming year, and should not go into recession. However, if the worst occurs, Farhi says the government will have to get involved.
"We can't have a situation in which large factories are in bad situations because of credit squeezes and the State will have to get involved with the market's powers to give security and ensure that we don't reach a situation in which factories are closed because of lack of credit," he said.
On Wednesday, Prime Minister Ehud Olmert urged employers to think twice before letting people go. His words however, may have fallen on deaf ears, as Israel's high-tech sector, which is considered one of the strongest areas of the market so far, has begun showing signs of distress.
Unemployed high-tech professionals have begun arriving at the Employment Service, and according to Farhi, a pilot for a separate section for dealing with this branch will be launched in two weeks, and possibly implemented in all Employment Service offices.
"We are trying to build a new operational model for dismissed high-tech workers. The workers try to get closer to employers and locate more employers.
"External advisors will be recruited to help direct workers and find jobs that are more appropriate for them, because high-tech is a complex field that has many tracks. High-tech is in our soul. Some small intervention from the State could lead to large dividends later on," he said.
