Summary:
- The number of employed Israelis rose rapidly during 2010, by about 100,000, and the real wage partially recovered as a result of the continued increase in the demand for labor.
- Labor force participation and employment rates grew rapidly (to 57.4 percent and 53.5 percent, respectively), particularly among women.
- The unemployment rate fell to 6.7 percent despite the increase in the participation rate. However, it is believed that the Israeli economy has still not reached full employment since unemployment among men is relatively high and the ratio of vacant posts to number of unemployed is still low.
- The number of Israelis employed in the business sector grew by about 60,000, of which a quarter occurred in the business services industry and about a quarter in the construction industry.
- Employment grew despite the only partial implementation of the declared government employment policy: the Lights to Employment (Wisconsin) program was cancelled; the number of foreign workers was not reduced; the enforcement of labor laws was not improved; and the reform of the Employment Service was not implemented. On the other hand, the day-care budget was increased in the last five years by about 60 percent in real terms.
- The labor force participation and employment rates among adult men and women grew as a result of the increase in retirement age to 67 for men and 62 for women, without an accompanying increase in the rate of unemployment.
- The higher level of academic education among the ultra-Orthodox population has not yet been manifested in the rate of employment among ultra-Orthodox men; however, it is expected to increase in coming years.