Summary:
- Rapid economic growth affected the labor market in 2005, boosting employment, reducing unemployment, and causing a rise in wages.
- The rise in wages was accompanied by improved labor productivity and a drop in the cost of labor per unit of production, a continuation of the trend over the two preceding years.
- Hiring of workers in the business sector reflected heterogeneity in real activity: approximately 60 percent of new employees were in the trade and services sectors. In contrast, less than 10 percent of the new employees were hired by industry, which accounts for approximately one quarter of all business sector employment.
- Expansion in activity affected all sections of the population, but not to the same degree. Among highly educated people, the unemployment rate fell-approaching its natural level-which caused their wages to rise.
- Despite the recognition that helping economically disadvantaged people requires their inclusion in the labor force, some programs with this aim were cut back in 2005, while the policy of reducing employment of foreign workers was relaxed. Even so, a number of programs were formulated and put into operation, and are expected to yield results in the coming years.
- In order to promote the welfare of economically disadvantaged groups, policies designed to integrate them in the labor market should be continued and strengthened.
The Labor Market - Full File