'Haredi employment has huge potential'
Industry, trade and labor minister believes integration of ultra-Orthodox men, Arab women into labor market will help Israeli economy 'like Russian aliyah did in the 1990s'
The minister discussed the need for haredi and Arab employment earlier this week at a Tel Aviv conference organized by ASHRA – the Israel Export Insurance Corporation. He presented projects launched by the government in order to achieve that goal, including professional trainings, affirmative action and employment fairs.
Simhon estimated that "the employment of these two sectors has the potential of turning Israel into a different country and increasing growth similarly to what happened here in the 1990s, when the Russians arrived, putting Israel on the same level as Western countries. If that doesn't happen, we'll be in big trouble."
According to Simhon, "We are starting 2012 with quite a few concerns. The figures of a 4.8% growth and a 5% unemployment level are real and joyful, but they may dazzle us and lie.
"In the short run, the situation in the international markets is concerning, and the government and business sector must prepare for a slowdown in Western markets and continue moving export activity westward to more growing markets like India and China.
"The cost of living is also threatening the Israeli society, as we have seen in the protests, and it's good that it's being taken care of.
"In the long run, there is a need for deep processes to change the structure of the Israeli society and increase the presence of certain sectors in the labor market, mainly Arabs and haredim."
Exporters' credit to be increased
The minister announced that he would increase ASHRA's credit to exporters from $2 billion to $4 billion in order to help them with the challenge of diverting the export markets eastward.
ASHRA CEO Zvi Chalamish said, "The world is changing, virtually turning over. The risk insurance we give to Greece today is more expensive than to Angola, and Angola has a higher growth potential than most Western countries.
"Today there are European immigrants in Africa instead of the other way around. But still, Israeli investors in third world countries face dangers. The government can wake up one day and decide that it won't pay back its debts to you. They must be protected."
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