Israel - no recession here - yet

Unemployment rates hit 21-year low

 

Central Bureau of Statistics data indicates steady decline in unemployment continues, as figures reach two-decade low; Finance Ministry warns trend may soon end

 

Gad Lior
Published:  07.24.08, 15:12 / Israel Money

 

Encouraging data: The Central Bureau of Statistics announced Thursday that unemployment rates in Israel have reached an unprecedented 21-year low, reaching 6.1% – or 178,800 unemployed individuals.

 

Unemployment rates in Israel hit their most recent high in January of 2004, when 11% of able Israelis – 300,000 people or so – found themselves unable to take part in the workforce.

 

The Central Bureau of Statistics' data pertains to May and although market analysts have predicted that the recent slow- down experienced by the Israeli market may lead to layoffs, unemployment rates are still steadily declining.
 

"We are witnessing a decline in unemployment rates despite the growing numbers of people joining the workforce. The thriving Israeli market has been able to accommodate both the new members in the workforce and those seeking employment from within it," said a senior source in the Finance Ministry.

 

May's indication of a 6.1% unemployment rate is the lowest recorded since 1987. The Bank of Israel and the Finance Ministry did, however, expressed concerns that the current trend has come to its end.