Printer Friendly

Part 3 New jobs.

Most New Jobs Created Since 2003 are Part-Time

Most of the jobs created during the current wave of growth in Israel are parttime. As we shall see, more than a quarter of their holders would prefer to work full-time.

Between 2003 and 2006, 256,500 new jobs were created; 143,000 of these (56%) were part-time and the balance of 113,500 (44%) were full-time. In 2005, for the first time, the number of new, full-time jobs exceeded the number of new part-time jobs. This trend has continued, but in 2006 there were fewer new full-time jobs than in 2005.

Most New Men's Jobs Created Since the Renewal of economic Growth are Full-Time

Examining the figures by gender, we find that most of men's new jobs are fulltime, while most of women's new jobs are part-time.

With respect to men, the current wave of economic growth is divided into two distinct periods: In the years 2003-2004, 85% of the new jobs created were parttime, while in the more recent years of 2005-2006, 93% of the new jobs created were full-time.

Most New Women's Job Created Since the Renewal of Economic Growth are Part-Time

The picture is different for women: During the current wave of growth, 20032006, the percentage increase of part-time jobs was significantly higher than the percentage increase of full-time jobs. During this 4-year period, only 30% of the 121,600 new jobs taken up by women were full-time. Nevertheless, for women as for men, 2005-2006 saw an increase in the number of full-time jobs.

What Kinds of Jobs Were Created?

The new jobs are in different sectors of the economy. Below we discuss women and men separately. (Note that data about the distribution by economic sector are available only up to 2005; therefore, the total figures presented below are different than those presented on the previous page, which also include 2006.)

Women

About half (49%) of the new jobs held by women are in the areas of health, welfare, social services, and education. The salaries in these services, especially in social and welfare services, are relatively low. In the business sector, business services experienced the greatest job growth. As evident in the following table, the business service category showing the most significant job growth was "Security and Cleaning Activities" (a growth rate of 45.7%), which consists of unskilled jobs at low pay. Another category with high growth is "Other Business Activities," which includes legal, bookkeeping and accounting services; advertising; architectural and engineering services, and other business services (a growth rate of 20%).

Men

Approximately one-third--37,000--of all new jobs taken by men were in the general category of Business Activities, including the sub-category "Security and Cleaning Services," which alone contributed 12,200 new jobs. This means that 12% of the new jobs resulted from the intifadah, and were not a product of normal economic growth. Together with the low-paying jobs, much better paying jobs were also taken up by men, primarily in the high-tech industry. These parallel developments reflect the split structure of the Israeli economy--dramatic growth in fields that have little investment and low wages, in parallel with fields that are heavily invested and offer high wages.

High Tech Cannot Employ All Israelis

The most glamorous sector of the Israeli economy is high tech. It accounts for about half of all industrial exports and contains some of the biggest economic success stories of recent years.

However, only a small portion of the Israeli labor force works in high tech --10% in 2005--even using the broadest possible definition, which includes not just the high-tech industry, but also high-tech services (see box below). The high tech sector in Israel was adversely affected by the bursting of the global high-tech bubble in 2000, as well as by the recession resulting from the intifadah. This was clearly reflected in a loss of jobs. The decline came after the number of jobs had almost doubled in the second half of the 1990s, from 115,500 in 1995 to 207,500 in 2001.

During the years of intifadah, 2001-2003, high tech lost 15,000 jobs; in 2003, it had a total of 192,600 jobs. The female workforce declined by 11% and the male workforce by 5%.

In 2004, Israel's high tech sector began once again to expand, reflected in 4,500 new jobs--3,700 of them in electronic components (2,800 to men and 900 to women). In 2005, however, the biggest increase was in the field of "Medical and Scientific Equipment for Control and Supervision."

It should be noted that the intifadah affected not only jobs but also wage levels. Between 2001 and 2003, the average monthly wage for salaried persons in high tech declined by 10.5%, from NIS 15,787 to NIS 14,126. The sharpest decline was in high-tech services, especially computer services--a drop of 16%. When Israel began to emerge from the recession in 2004, there was a small increase in the average monthly wage in high tech, which continued in 2005.

Renewed Economic Growth: Not a Boon to All Workers

At the time of writing, some 290,000 Israeli workers are unable to benefit from the renewed economic growth, either because they are unemployed, have despaired of finding work, or are working part-time instead of full-time. Each of these groups is briefly reviewed below.

The Unemployed

During the intifadah, unemployment rose sharply: In 2002, 2003 and 2004, unemployment exceeded 10%. Such a high level of unemployment had previously occurred only in 1991-1993, during the peak years of immigration from the former Soviet Union.

In the past two years, with resumed economic expansion, unemployment gradually decreased to 9% in 2005 and 8.4% in 2006 (CBS, L abor Force Survey 2005; Press Release of February 28, 2007).

The Worsening Situation of the Unemployed

Unemployed persons are entitled to unemployment compensation only under certain conditions. The first requirement is that they register with the Government Employment Service. If, after registration, the Employment Service fails to find work for them, they are entitled to submit a request for unemployment compensation to the National Insurance Institute.

The bureaucratic procedures result in only some of the unemployed registering with the Employment Service--about 80% on average since 1995. A much smaller proportion actually receives unemployment compensation: In 1995-2001, an average of 46% of the unemployed received compensation (calculation based on Esther Toledano, Recipients of Unemployment Compensation in 2005, Table A). Between 2002 and 2006, the terms of entitlement to unemployment compensation became much more stringent. As a result, the proportion of unemployed persons receiving compensation dropped to about 24% in 2006 (data from the Research and Planning Administration of the National Insurance Institute, April 26, 2007). In addition, the payments themselves were sharply curtailed. As a result, although the number of unemployed persons rose, total payments declined from an average of NIS 3.754 billion in 2001-2002 to NIS 1.957 billion in 2006 (at 2006 prices; Esther Toledano, Recipients of Unemployment Compensation in 2005, Table 2; data for 2006 were obtained from the Research and Planning Administration of the National Insurance Institute, April 26, 2007).

In other words, the safety net which once existed for unemployed women and men has greatly deteriorated.

Increase in the Duration of Unemployment

While the unemployment rate is slowly declining, the duration of unemployment is increasing. In 2005, some 24% of unemployed women and 27% of unemployed men remained unemployed for over a year; two years earlier, in 2003, only 18% of men and women remained unemployed for that long. The proportion of those seeking work for over four years has also recently increased, and the number of those seeking work for 2-4 years also rose slightly. On the other hand, the proportion of those seeking work for two years or less has declined.

Unemployed Persons Who Give Up Looking for Work

Among the unemployed, there is another significant group--those who have given up looking for work. These are people who want to work, but whose failed efforts over a long period of time have led them to stop looking for a job. In 2005, their proportion among Jews amounted to 1.0% of the Jewish work force, compared with 1.3% in 2000 (for April through December 2000). If we add those who have given up looking for a job to the ranks of the officially unemployed, we find that the real unemployment rate is higher than that reported in the media.

The increase in the number of people who gave up looking for a job is greater among Arab and "other" citizens ("others" are Christians who are not Arabs, most of them immigrants from the former Soviet Union), and this is especially true for women. Over the last five years, the proportion of male "Arabs and others" who have given up on finding a job increased from 4.1% to 8.7%, while the proportion of women increased from 6.9% to 12.8%. In short, 10% of the civilian work force of "Arabs and others" are men and women who have despaired of finding a job (CBS, Labor Force Surveys, various years).

Part-Time Workers Who Desire Full-Time Jobs

Finally, another group that might be added to the ranks of the unemployed are workers employed part-time who desire full-time jobs. In 2000, some 19% of part-time workers in Israel reported that they wanted to work full-time; in 2006, this rose to 23.0%. These women and men want to work more, but are not finding full-time positions (ibid.). The proportion of dissatisfied part-time workers in Israel is three times larger than in countries of the OECD. An analysis conducted by the Bank of Israel noted that some 80% of dissatisfied part-time employees are women (Bank of Israel, 2005 Report, pp. 178-181).

The hi tech sector includes a number of manufacturers (pharmaceuticals, machinery, electronic components, communications equipment, quality control equipment, and the aircraft industry), as well as a number of services (communications, computer services, research and development).
New employees
By Type of Job * 2003-2006 * Percentage Change

Type of Job 2003 2004 2005 2006

Full-time 0.6% 0.3% 3.5% 2.9%
Part-time 6.2% 9.2% 4.3% 2.1%

Note: Does not include persons temporarily absent from work.

Sources: Adva Center analysis of Central Bureau of Statistics, Press
Release of February 28, 2007, "Statistics from the Manpower Survey for
the Last Quarter of 2006 and for the Year 2006"; CBS, Manpower Survey
2005.

New employees: men
By Type of Job * 2003-2006 * Percentage Change

Type of Job 2003 2004 2005 2006

Full-time 0.5% 0.5% 3.8% 3.0%
Part-time 10% 15.2% 0.7% 1.4%

Note: Does not include persons temporarily absent from work.

Sources: Adva Center analysis of Central Bureau of Statistics, Press
Release of February 28, 2007, "Statistics from the Manpower Survey for
the Last Quarter of 2006 and for the Year 2006"; CBS, Manpower Survey
2005.

New employees: Women
By Type of Job * 2003-2006 * Percentage Change

Type of Job 2003 2004 2005 2006

Full-time 0.8% 0.1% 3.0% 2.7%
Part-time 4.4% 6.1% 6.3% 2.5%

Note: Does not include persons temporarily absent from work.

Sources: Adva Center analysis of Central Bureau of Statistics, Press
Release of February 28, 2007, "Statistics from the Manpower Survey for
the Last Quarter of 2006 and for the Year 2006"; CBS, Manpower
Survey 2005.

Women: New Employees by Economic Sector
2003-2005 * Economic Sectors With at Least 2,000 New Female Employees
* In Descending Order of Number of New Women Employees * Thousands and
Percentages

 New Female Percentage
 Employees Change
 2003-2005 2003-2005

Total 107.3 10.3%
Health, Welfare and Social Services 27.0 15.0%
Education 25.0 11.4%
Business Activities 23.4 20.3%
 Thereof: Other business activities 12.6 20.7%
 Thereof: Legal and notary services 3.7 25.2%
 Thereof: Architecture, engineering, and 2.6 22.8%
 other technical activities
 Thereof: Security and cleaning activities 7.9 45.7%
Trade and Repair of Motor Vehicles 9.6 7.4%
Household Services by Individuals 6.4 20.3%
Transport, Storage and Communications 5.9 14.5%
Hotel and Restaurant Services 5.4 13.4%
Banking, Insurance & Finance 4.9 11.4%
Manufacturing 4.4 4.2%
 Thereof: Publishing and printing 2.7 36.0%

Source: Adva Center analysis of Central Bureau of Statistics, Manpower
Surveys, various years.

Men: New employees by economic sector
2003-2005 * Economic Sectors With at Least 2,000 New Male Employees
* In Descending Order of Number of New Men Employees * Thousands and
Percentages
 New Male Percentage
 Employees Change
 2003-2005 2003-2005

Total 101.9 8.2%
Business Activities 36.7 23.0%
 Thereof: Other business activities 13.2 21.5%
 Thereof: Architecture, engineering, and 4.8 24.4%
 other technical activities
 Thereof: Legal and notary services 2.4 16.0%
 Thereof: Security and cleaning activities 12.2 34.9%
 Thereof: Computer services 7.2 17.8%
Hotel and Restaurant Services 16.8 31.9%
Trade and Repair of Motor Vehicles 15.7 8.7%
Transport, Storage and Communications 9.8 9.2%
Manufacturing 9.7 3.6%
 Manufacturing: Metal products 5.0 13.3%
 Manufacturing: Electronic components 4.2 40.0%
 Manufacturing: Transport equipment 3.1 19.4%
 Manufacturing: Industrial equipment for 2.3 12.7%
 control & supervision, medical scientific
 equipment
Construction 7.6 6.9%
Community, Social, & Personal Services 6.0 10.9%
Health, Welfare & Social Services 5.0 9.2%
Agriculture 3.4 9.1%

Source: Adva Center analysis of Central Bureau of Statistics, Manpower
Surveys, various years.

Hi-Tech Workers
By Gender * 2000-2005 * Total Workers and Percentage of New Workers
* by Sub-Sector * Thousands

 2000 2001 2002 2003 2004 2005

High-Tech Sector--Total 189.3 207.5 193.2 192.6 197.1 217.2

Men 123.1 134.6 126.1 127.8 131.5 143.8
Women 66.0 72.7 67.0 64.8 65.5 73.5
New Workers: Men 22.9 11.4 -8.5 1.7 3.7 12.3
New Workers: Women 13.9 6.7 -5.7 -2.2 0.7 8.0

Manufacturing in the 89.2 92.2 89.3 89.7 93.4 100.0
High-Tech Sector

Men 60.9 61.5 61.0 62.5 65.0 65.9
Women 28.3 30.5 28.1 27.2 28.4 30.4
New Workers: Men 6.9 0.6 -0.5 1.5 2.5 4.5
New Workers: Women 4.4 2.2 -2.4 -0.9 1.2 2.1

Services (knowledge- 100.1 115.3 103.9 102.9 103.7 117.3
intensive) in the
High-Tech Sector

Men 62.3 73.1 65.1 65.3 66.5 74.3
Women 37.7 42.2 38.9 37.7 37.2 43.0
New Workers: Men 16.0 10.8 -8.0 0.2 1.2 7.8
New Workers: Women 9.5 4.5 -3.3 -1.2 -0.5 5.8

Sources: Adva Center analysis of Central Bureau of Statistics,
Manpower Surveys, various years.

Average Wage of Hi-Tech Workers
2001-2005 * NIS * Constant 2006 Prices

 2001 2002 2003

High-Tech Sector--Total 15,787 14,525 14,126

Manufacturing in the High-Tech Sector--Total 15,103 14,523 14,337

 Thereof: Electronic components 12,208 12,445 12,379
 Thereof: Electronic communications 18,305 17,278 17,270
 equipment
 Thereof : Industrial equipment for 17,788 16,970 16,624
 control and supervision, medical

 and scientific equipment
 Thereof: Transport equipment 14,062 13,621 13,502
 (including aircraft manufacture)

Services (knowledge-intensive) 16,315 14,527 13,957
in the High-Tech Sector--Total

 Thereof: Communications 11,124 10,129 9,865
 Thereof: Computer services 18,291 16,180 15,422
 Thereof: Research and development 17,394 16,346 16,195

 2004 2005

High-Tech Sector--Total 14,430 14,875

Manufacturing in the High-Tech Sector--Total 14,449 14,850

 Thereof: Electronic components 10,799 11,029
 Thereof: Electronic communications 18,217 18,551
 equipment
 Thereof : Industrial equipment for 17,353 17,745
 control and supervision, medical
 and scientific equipment
 Thereof: Transport equipment 13,418 14,026
 (including aircraft manufacture)

Services (knowledge-intensive) 14,414 14,895
in the High-Tech Sector--Total

 Thereof: Communications 9,515 9,424
 Thereof: Computer services 16,009 16,481
 Thereof: Research and development 17,432 18,487

Note: Data for 2004 and 2005 are based on a new survey.

Sources: Adva Center analysis of Central Bureau of Statistics, Manpower
Surveys, various years.

New employees
By Type of Job * 2003-2006 * Thousands

 full part
 time time

2003 8.6 37.7
2004 5.2 59.2
2005 53.8 30.4
2006 45.9 15.7

Note: Does not include persons temporarily absent from work.

Sources: Adva Center analysis of Central Bureau of Statistics, Press
Release of February 28, 2007,
Statistics from the Manpower Survey for the Last Quarter of 2006 and
for the Year 2006"; CBS, Manpower Survey 2005.

New employees: men
By Type of Job * 2003-2006 * Thousands

 full part
 time time

2003 4.5 19.8
2004 4.5 33.0
2005 33.0 37.2
2006 1.7 3.5

Note: Does not include persons temporarily absent from work.

Sources: Adva Center analysis of Central Bureau of Statistics, Press
Release of February 28, 2007, "Statistics from the Manpower Survey for
the Last Quarter of 2006 and for the Year 2006"; CBS, Manpower Survey
2005.

New employees: Women
By Type of Job * 2003-2006 * Thousands

 Full part
 time time

2003 4.2 17.8
2004 0.7 26.2
2005 16.6 28.7
2006 15.2 12.2

Note: Does not include persons temporarily absent from work.

Sources: Adva Center analysis of Central Bureau of Statistics, Press
Release of February 28, 2007,
Statistics from the Manpower Survey for the Last Quarter of 2006 and
for the Year 2006"; CBS, Manpower Survey 2005.
COPYRIGHT 2007 Adva Center
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2007 Gale, Cengage Learning. All rights reserved.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:Israel Labor Report
Article Type:Report
Geographic Code:7ISRA
Date:May 1, 2007
Words:2972
Previous Article:Part 2 High wages, low wages.
Topics:

Terms of use | Copyright © 2015 Farlex, Inc. | Feedback | For webmasters