Workers, employers and the distribution of Israel's national income: labor reports: 2005.IntroductionThis report is the first in a new series. It presents a picture of the situation in Israel regarding employment, unemployment, wages, and how the national income is distributed between workers and employers. Most of the figures presented relate to the present decade, though some include a longer period of time. The present decade began with unusually high growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. , attributed to the hi tech industry, which sold a number of start-ups to foreign corporations, against the background of the global hi tech bubble A bit in bubble memory or a symbol in a bubble chart. . The second intifadah intifadah (Arabic; “shaking off”) Palestinian revolt (1987–93, 2000– ) against the Israeli occupation in the Gaza Strip and West Bank. , which broke out in September September: see month. 2000, together with the bursting of the global hi tech bubble, was followed by an unprecedented contraction contraction, in physics contraction, in physics: see expansion. contraction, in grammar contraction, in writing: see abbreviation. contraction - reduction of economic activity in Israel. This was reflected in two consecutive years of decrease in GDP GDP (guanosine diphosphate): see guanine. and three consecutive years of decrease in GDP per capita [Latin, By the heads or polls.] A term used in the Descent and Distribution of the estate of one who dies without a will. It means to share and share alike according to the number of individuals. , accompanied ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. by high rates of unemployment. In the middle of 2003, when the level of suicide suicide [Lat.,=self-killing], the deliberate taking of one's own life. Suicide may be compulsory, prescribed by custom or enjoined by the authorities, usually as an alternative to death at the hands of others, or it may be committed for personal motives. bombings within Israel proper declined, economic activity began once again to expand, followed by another two years of growth: in 2004, GDP expanded by 4.4% and in 2005, by 5.2%. However, this growth has not yet brought about the promised outcomes: while it has been accompanied by a sharp increase in the share of employers in the national income, the share of the workers--salaried as well as self-employed--has been on the decline. Unemployment is decreasing, but the pace is painfully slow. At the same time, the proportion of persons unemployed for long periods of time, as well as the proportion of unemployed persons who despair Despair See also Futility. Detection, Crime (See SLEUTHING.) Destiny (See FATE.) Achitophel hanged himself from despair when his advice went unheeded. [O.T. of finding jobs, has been growing. While the demand for workers has increased, the majority of the job offers are part time. Wages that fell during the recession years have not returned to their former levels. Finally, over the long run, we see a trend of increasing polarization polarization Property of certain types of electromagnetic radiation in which the direction and magnitude of the vibrating electric field are related in a specified way. between the remuneration REMUNERATION. Reward; recompense; salary. Dig. 17, 1, 7. of persons in the top income Gentile, whose salaries increased by 39% over the last two decades, and that of persons earning low wages (2/3 or less of the median wage), whose salaries increased by only 7%. Part 1 Distribution of the National Income Between Workers and Employers Over long periods of time, the share of workers and of employers in the national income tends to remain stable. Thus, during most of the 1990s, the share of Israeli workers--both salaried and self-employed--in the national income was about 75%. The scales can tip in favor of upon the side of; favorable to; for the advantage of. See also: favor employers in a number of ways: through rapid economic growth, through the introduction of new technologies, through the immigration immigration, entrance of a person (an alien) into a new country for the purpose of establishing permanent residence. Motives for immigration, like those for migration generally, are often economic, although religious or political factors may be very important. or import of cheap labor, or through the transfer of production lines to countries with cheap, non-unionized labor. In contrast, considerable and prolonged pro·long tr.v. pro·longed, pro·long·ing, pro·longs 1. To lengthen in duration; protract. 2. To lengthen in extent. efforts are required on the part of workers to tip the scales in their favor: this usually comes about as a result of unionization or of a radical change in the political system. Even if changes in the share of workers and employers in the national income are small, the amounts involved are significant: in 2005, for example, Israel's national income was NIS Niš or Nish (both: nēsh), city (1991 pop. 175,391), SE Serbia, on the Nišava River. An important railway and industrial center, it has industries that manufacture textiles, electronics, spirits, and locomotives. 455.7 billion, one percent of which was NIS 4.6 billion. Had the share of workers in the national income been 76%, as it was in 2001, and not 70%, as it was in 2005, workers would have received NIS 27.6 billion more than they did. Dividing up this amount by the number of workers in Israel in 2005--about 2.5 million (not including migrant mi·grant n. 1. One that moves from one region to another by chance, instinct, or plan. 2. An itinerant worker who travels from one area to another in search of work. adj. Migratory. workers)--we arrive at an average loss of some NIS 11,000 for the year, or about NIS 900 per month. Distribution of the National Income, 2005-2005 The following table allows us to follow changes in the distribution of the national income over the past five years. In 2000, the year of the hi tech bubble, the national income amounted to NIS 406.9 billion (a 7% growth over 1999). Workers' share was 75% and employers' share, 9%. Following the bursting of the hi tech bubble and the outbreak outbreak see epidemic. of the intifadah in 2000, in 2001 the national income grew by only 1.9%, to NIS 414.6 billion. The workers' share stood at 76%. In contrast, employers' profits decreased from NIS 37.3 billion to NIS 25 billion (a decline of 21%), and their share of the national income decreased from 9% to 6%. In 2002, the effects of the recession brought on by the intifadah were reflected in the figures. The national income declined from NIS 414.6 billion to NIS 398.1 billion (a decrease of 4%). The total amount received by the workers also decreased, but their share of the national income remained stable at 76%. The total amount received by employers pluinineted from NIS 25 billion to NIS 15.3 billion, and their share in the national income dipped dip v. dipped, dip·ping, dips v.tr. 1. To plunge briefly into a liquid, as in order to wet, coat, or saturate. 2. from 7% to 4%. In the middle of 2003, the security situation improved, and economic activity expanded. The amount received by employers rose, returning to its 2001 level. Their share rose from 4% to 7%. In contrast, the amount received by workers continued to shrink shrink Vox populi noun A psychiatrist , along with their share of the national income, which declined from 76% to 73%. The trend continued into 2004 and 2005: the amount received by workers grew somewhat, returning to its 2001 level, but their share of the (increasing) national income continued to shrink, to 72% and then to 70%, while the share of employers continued to grow, to 9% and then to 10%. Compensation for Work Decreases The decline in the share of workers in the national income, and the rise in the share of employers, are also reflected in figures published by the National Bureau of Statistics on compensation per hour and on product per hour of work. Compensation per hour is calculated by dividing the total compensation for work by the total number of hours worked (salaried persons only) during the year. Product per hour is calculated by dividing the total product by the total number of hours of work of both salaried and self-employed self-em·ployed adj. Earning one's livelihood directly from one's own trade or business rather than as an employee of another. self workers; it is a measure of productivity. As can be seen in the following table, since 2001, there has been a decline in the compensation per hour. The decline began during the intifadah but has not changed significantly since then. The remuneration per hour in 2005 was lower than it was in 2000 and 2001. At the same time, product per hour, which declined during the recession years, increased considerably during the growth years. While between 2001 and 2003 growth rates were low, and in 2002 growth was negative, 2004 and 2005 saw high growth rates. In other words Adv. 1. in other words - otherwise stated; "in other words, we are broke" put differently , Israel's present wave of growth is characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by a rise in productivity that is not reflected in the hourly wages of workers. Part 2 Salaries. Decline in the Wages of Salaried Workers In this part of the report, we will show how the decline in workers' share of the national income is reflected in workers' wages--and in wage gaps. We begin with hourly wages. The table opposite presents average hourly wages by selected economic sectors. We can see that for men, hourly wages have declined somewhat since the beginning of the decade, while for women, they have experienced a slight rise. Men's wages declined in six out of the seven areas presented here, rising only in the manufacturing sector. As for women's wages, they rose in manufacturing and in banking, insurance and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. ; and they declined in business services, education, and health and welfare services; in the areas of hotel and restaurant services, commerce and auto repair, women's hourly wages remained much the same. The table also shows that hourly wages are lowest in the areas of hotel and restaurant services, and that they are highest in the banking, insurance and financial services sector. Finally, we see that there are significant differences between men's and women's hourly wages. Interestingly, the higher the wage level, the greater the gap between men's and women's wages. The smallest gap is in the area of hotel and restaurant services (in 2004, a gap of 10%), and the largest gap is in the area of banking, insurance and financial services (in 2004-26%). Salaries of Senior Executives As we have seen, the average hourly compensation of salaried persons is stagnant stagnant /stag·nant/ (stag´nant) 1. motionless; not flowing or moving. 2. inactive; not developing or progressing. or decreasing. Senior executives are a different story. Their salaries declined somewhat during the intifadah years, returned to their 2000 level in 2003, and rose significantly in 2004. The Globes newspaper publishes annual figures on the salary bills of the top five executives of corporations traded on the Tel Aviv Stock Exchange Tel Aviv Stock Exchange Israel's only stock exchange. . According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. those figures, in 2004 the average annual salary bill of such a top executive was NIS 1.73 million. This sum amounts to a rise of 56% over the last decade: in 1995, the equivalent salary bill was NIS 1.11 million. We should bear in mind that in many cases, the salary bill of top executives reaches enormous proportions: for example, the salary bill of the director-general director-general Noun pl directors-general a person in overall charge of certain large organizations of Bank Hapoalim Bank Hapoalim (Hebrew: בנק הפועלים lit. Bank of the Workers) is the largest Israeli bank. was NIS 33.5 million in 2005 (Ynet Ynet is one of the most visited Israeli news websites. While it is owned and operated by Yediot Aharonot, the Israeli newspaper with the largest circulation, and includes articles from the tabloid print edition, most of the content is original work published on website only written , April 20, 2004). Regardless of Where They Work, the Majority of Workers Receive Low Wages As we have seen, there are considerable differences in average per-hour wages in different sectors of the economy. Workers in banking, insurance and financial services earned in 2004, on average, 2.6 times the average salaries of workers employed in hotel and restaurant services. However, if we examine wages within each sector of the economy, we find that wage levels are consistently unequal: in each sector, a large portion of the workers earns low wages; in all of them, the proportion of workers earning high salaries is quite low. What happens is that often the high salaries of a minority of workers have the power to raise the average for the whole sector. We can examine this phenomenon with the help of figures published by the National Insurance Institute that show breakdowns of wages in relation to the average wage. The first year for which such figures are available is 1994 and the most recent--2003. On average, about 41 % of wage earners received in 2003 wages equivalent to half the average wage (NIS 3,729) or less. In the field of hotel and restaurant services, where wages are the lowest, 51.2% of workers earned up to half the average wage. But even in the field of banking, insurance and financial services, where the average wage is much higher, a similar proportion of workers--46.7% -earned wages that were no higher than half the average wage. Moreover, nearly two-thirds of workers earned no more than NIS 5,594-75% of the average wage in 2003. The proportion of workers earning more than the average wage in 2003--NIS 7,458--was 27%. The proportion was higher in the manufacturing (36.8%)and transportation (37.4%)sectors; in contrast, it was much lower in agriculture --only 16%. The proportion of workers earning at least three times the average wage--about NIS 20, 000--was 3.8%. It was highest in manufacturing--5.8% and lowest in agriculture -1.2%. Fringe Benefits fringe benefits, n.pl the benefits, other than wages or salary, provided by an employer for employees (e.g., health insurance, vacation time, disability income). Increasing wage differentials have been accompanied by differentials in fringe benefits. In addition to their hourly or monthly wages, workers are entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to payments for the following purposes: social security, continuing education continuing education: see adult education. continuing education or adult education Any form of learning provided for adults. In the U.S. the University of Wisconsin was the first academic institution to offer such programs (1904). funds, pension and unemployment compensation funds, transportation, cafeteria cafeteria: see restaurant. lunches, and the like. The table opposite presents the total outlays Outlays Payments on obligations in the form of cash, checks, the issuance of bonds or notes, or the maturing of interest coupons. for wages and fringe benefits in the area of manufacturing, where the categories are graded by technological sophistication so·phis·ti·cate v. so·phis·ti·cat·ed, so·phis·ti·cat·ing, so·phis·ti·cates v.tr. 1. To cause to become less natural, especially to make less naive and more worldly. 2. . The table clearly shows differentials with regard to fringe benefits. In 2004, employers in the traditional technological industries paid a total of NIS 1.51 billion for fringe benefits for their workers, a sum that amounted to 15.9% of the total salary bill in that category. In contrast, employers in the elite technological industries expended ex·pend tr.v. ex·pend·ed, ex·pend·ing, ex·pends 1. To lay out; spend: expending tax revenues on government operations. See Synonyms at spend. 2. a total of NIS 2.537 billion on fringe benefits, a sum that amounted to 21.4% of the total wage bill in that category. The table also shows that in recent years, the share of fringe benefits paid out by employers to their workers rose somewhat in the traditional technological industries and declined somewhat in the elite technological industries. Top Wage-Earners vs. Bottom Wage-Earners 1988-2004 Finally, we present figures on the salaries of two groups of workers: salaried workers in the top income centile Noun 1. centile - (statistics) any of the 99 numbered points that divide an ordered set of scores into 100 parts each of which contains one-hundredth of the total percentile and low-wage salaried workers earning no more than two-thirds of the median wage. While most of the figures presented up to now concerned the first years of the twenty-first century, here we present figures since 1988. The figures are taken from an analysis performed by the Adva Center Adva Center is a non-partisan, action-oriented Israeli policy analysis center. Adva is the Hebrew word for ripple. It was founded in 1991 by activists from three social movements: the movement for equality for Mizrahi Jews, the feminist movement, and the movement for equal on figures from the annual income surveys of the Central Bureau of Statistics. The analysis focuses on employed persons and does not included self-employed individuals. The first table presents figures for wage-earners at the bottom of the scale, those earning up to two-thirds of the median wage, and the second presents figures for the top one percent of salaried persons. The first table shows that low salaries have risen very little over the past 16 years: from NIS 3,200 a month to NIS 3,435 a month, an increase of 7.3%. In contrast, the threshold The point at which a signal (voltage, current, etc.) is perceived as valid. of the top income centile has risen from NIS 21,324 a month to NIS 29,711 a month, an increase of 39.3%. Moreover, the share of the total income (of all salaried persons) earning two-thirds of the median wage or less decreased, from 9% in 1988 to 8% in 2004, while the share of the top centile increased from 5% to 6%. Notably, both groups enjoy a similar portion of the total income: in 2004 wage-earners at the bottom received 8% of the total income, and wage-earners at the top--6%. However, low wage-earners comprised 26% of all wage-earners, while the top centile is comprised of one percent of all wage-earners. Who's Who 1988-2004 Salaried workers in the top centile are overwhelmingly men (88%), while two-thirds of workers in the bottom category are women. Nevertheless, the proportion of women in the top centile has increased in recent years, from 6% in 1988 to 12% today, while the proportion of men declined accordingly. In the past, all salaried workers in the top centile were Jews Jews [from Judah], traditionally, descendants of Judah, the fourth son of Jacob, whose tribe, with that of his half brother Benjamin, made up the kingdom of Judah; historically, members of the worldwide community of adherents to Judaism. , while today a small proportion--3%--are Arabs Arabs, name originally applied to the Semitic peoples of the Arabian Peninsula. It now refers to those persons whose primary language is Arabic. They constitute most of the population of Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, (Prior to 1997, the sample for the Arab population of Israel was not representative of the whole, and thus we do not present figures for earlier years). In 2004, Arabs comprised 12% of low-wage workers. Regarding Jews alone, we see an increase of third-generation Jews and a decrease of first and second generation Jews, both Mizrahi and Ashkenazi Ashkenazi Any of the historically Yiddish-speaking European Jews who settled in central and northern Europe, or their descendants. They lived originally in the Rhineland valley, and their name is derived from the Hebrew word Ashkenaz (“Germany”). , in the low-income group, in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the decrease in their share of the general population. About a fourth of low-income earners are new immigrants who arrived in Israel after 1990, most of them from the former Soviet Union. Iininigrants' share in the low-income group was 20% in 1990 and 25% in 2001. In 2004 their share experienced a small decline. Their representation in the top centile was and still is negligible  This article or section is written like a personal reflection or and may require .Please [ improve this article] by rewriting this article or section in an . . In both the top and bottom income groups, there is a decline in the share of persons with up to 12 years of schooling, due to the general decline of persons with less than a high school education. In contrast, there is an increase in the representation of college-educated persons (16 years of schooling or more) in both the top and bottom income groups. The increase in the share of college-educated persons in the bottom income group, from 10% in 1988 to 17% in 2004, probably reflects the large numbers of immigrants from the former Soviet Union who did not find jobs in keeping with their training. The increase in the share of college-educated persons in the top income group--large to begin with--reflects the expansion of higher education in Israel Education in Israel is an important part of life and culture in Israel. Israel has a developed and comprehensive education system, reformed over the years to adhere to secular trends in education. , especially among the affluent. Part 3 New jobs. Most of New Jobs Created Since 2000 are Part-Time Most of the new jobs created in Israel in the 2000s are part-time. As we will see, more than a fourth of their job-holders would prefer to work full-time. Since 2000, 332,000 new jobs were created, more than half of them -167,500--are part-time, while the other 164,900 are full-time. During the renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. economic growth of the last three years--2003, 2004 and 2005-194,900 new jobs were created, 65% of them (127,300) part-time and only 67,600 full-time. In 2005, the number of new full-time jobs was greater than the number of new part-time jobs. Nevertheless, the number of new full-time jobs--58,800--was still not as large as the number of new full-time jobs in 2000-69,300 Most of New Men's Jobs Created Since the Renewal of Economic Growth are Part-Time Examining the figures by gender, we find that most of men's new jobs are full-time and that most of women's new jobs are part-time. Of the 163,000 new jobs held by men created between 2000 and 2005, about 97,000 were full-time, and about 66,000 were part-time. However, if we focus on 2003-2005, three years characterized by economic growth, we find that the number of new part-time jobs held by men is greater than the number of new full-time jobs held by men. In 2005, new full-time jobs held by men outnumbered Outnumbered is a British sitcom that aired on BBC One in 2007.[1] It stars Hugh Dennis and Claire Skinner as a mother and father who are outnumbered by their three children. new part-time jobs held by men. The number of new full-time jobs recorded for 2005 is similar to that for 2000-the year of the domestic and global high tech bubble. Most of Women's New Jobs Created Since the Resumption RESUMPTION. To reassume; to promise again; as, the resumption of payment of specie by the banks is general. It also signifies to take things back; as the government has resumed the possession of all the lands which have not been paid for according to the requisitions of the law, and the of Economic Growth Are Part-Time Of the 170,000 new jobs created between 2000 and 2005 held by women, about 60% are part-time jobs and the remainder full-time. If we focus on the last three years, 2003-2005, years characterized by economic growth, we find that the percentage of increase in part-time jobs is much greater than that of full-time jobs. During this 3-year period, 94,200 new jobs were taken up by women, 77% (72,700) of them part-time. What Kinds of Jobs Were Created During 2000-2004? The new jobs created in the 21st century are in to be found in different parts of the economy. In many cases, job growth was unequal across economic sectors, concentrated in areas in which wages were low and jobs part-time. We discuss women and men separately (Figures by economic area are available only up to 2004>. Women About half of the new jobs held by women are in the areas of health, welfare, education and community services, most of which involve low remuneration. In the business sector, business services experienced the greatest job growth. The following table shows that the two business service categories with the most job growth were "Other Business Activities" (including legal, book-keeping book-keeping Noun the skill or occupation of systematically recording business transactions book-keeper n book-keeping n → contabilidad f and accounting services; advertising; architectural and engineering services) - 30%, and "Security and Cleaning Activities"--76.4%. The latter consist of blue collar Collar 1. A protective options strategy that is implemented after a long position in a stock has experienced substantial gains. It is created by purchasing an out of the money put option while simultaneously writing an out of the money call option. 2. jobs at low pay Men In the five years 2000-2004, 124,100 new jobs were taken up by men. Sixty-three percent of these jobs were in the general category of Business Activities, including the sub-category of "Security and Cleaning Services," which alone contributed 23,000 new jobs. What this means is that about one-fifth (19%) of new jobs were the direct result of the intifadah, and not a derivative derivative: see calculus. derivative In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. of economic growth. The low-income jobs in security and cleaning have their counterparts in commerce, food production; hotel and restaurant services; and welfare, community and personal services, all of which involve part-time work at low pay. Alongside these, men took up full-time jobs at much better pay, mainly in hi tech industries (see computer services Data processing (timesharing, batch processing), software development and consulting services. See service bureau, SaaS and ASP. , electronic parts and control equipment in the table below). These parallel developments reflect the structure of the Israeli economy, which creates a large number of part-time jobs at low pay, while at the same time has developed a small number of areas offering full-time jobs at decent pay. Hi Tech Cannot Employ All Israelis This is a list of prominent Israelis (including Arab citizens of Israel). Historical figures Politicians
The most glamorous glam·or·ous also glam·our·ous adj. Full of or characterized by glamour. glam  or·ous·ly adv. sector of the Israeli economy is hi tech. It
accounts for about half of all industrial exports, and it contains some
of the biggest economic success stories of recent years.
However, only a small portion of the Israeli work force works Force Works was a short-lived Marvel Comics superhero team. It first appeared in Force Works #1 (July 1994). The group was formed from the remains of the West Coast Avengers, after leader Iron Man left the Avengers due to an internal dispute. in hi tech: in 2004, slightly more than 8%; this also includes hi tech services (see the box below). The hi tech sector in Israel was adversely affected by the bursting of the global hi 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 intifadah, hi 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 hi tech sector began once again to expand, reflected in 4,500 new jobs, 3,700 in electronic components, 2,800 of whose new jobs were taken up by men and 900 by women. Despite its renewed growth, hi tech cannot possibly absorb absorb To offset sell orders or a new security offering with buy orders. all new entrants to the labor market labor market A place where labor is exchanged for wages; an LM is defined by geography, education and technical expertise, occupation, licensure or certification requirements, and job experience , due to its small share of the civilian labor force. Figures published by the Economics Department of the Manufacturers' Association show that in 2005, a total of 4,100 new jobs--6.4% of the total new jobs created that year--were in hi tech manufacturing ("Monthly Analysis of Manufacturing," April 5, 2006). No figures are available on new jobs in hi tech services in 2005. 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 hi tech declined by 10.5%, from NIS 15,452 to NIS 13,826. When Israel began to emerge from the recession in 2004, there was a small increase in the average monthly wage in hi tech, from NIS 13,826 to NIS 14,056. The increase was not across the board: in the sub-category of electronic components, for example--in which most of the new jobs were to be found--the average monthly wage for salaried workers actually declined, from NIS 12,116 to NIS 10,789. The hi tech sector includes a number of manufactures (pharmaceuticals, machinery, electronic components, communications equipment, quality control equipment and aircraft), as well as a number of services (communications, computer services, research and development) Renewed Economic Growth: Not a Boon Boon A general term that refers to a benefit or improvement for investors. This can include such things as increased dividends, a stock market rally and stock buybacks. Notes: to All Workers At the time of writing (April 2006), some 310,000 Israeli workers are unable to benefit fully from the renewed economic growth, either because they are unemployed, they have despaired of finding work, or they are working part-time instead of full-time. We discuss each of these groups briefly below. Unemployed Persons During the intifadah, there was a sharp rise in unemployment: in 2002, 2003 and 2004, employment stood at more than 10%. Such a high level of unemployment occurred only in 1991-1993, during the peak of immigration from the former Soviet Union. In 2005 and the first quarter of 2006, with resumed economic expansion, unemployment decreased to 9%. The Worsening wors·en tr. & intr.v. wors·ened, wors·en·ing, wors·ens To make or become worse. Noun 1. worsening - process of changing to an inferior state decline in quality, deterioration, declension 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 employment for them, they are entitled to submit a request for unemployment compensation to the National Insurance Institute. The bureaucratic bu·reau·crat n. 1. An official of a bureaucracy. 2. An official who is rigidly devoted to the details of administrative procedure. bu procedures involved result in only some of unemployed persons registering with the Employment Service: since 1995, about 80% on average. A much smaller proportion actually receives unemployment compensation: in 1995-2001, an average of 46% of the unemployed (Calculated from Esther Esther (ĕs`tər), book of the Bible. It is the tale of the beautiful Jewish woman Esther [Heb.,= Hadassah], who is chosen as queen by the Persian King Ahasuerus (Xerxes I or II) after he has repudiated his previous wife, Vashti. Toledano," Recipients of Unemployment Compensation in 2004," Table A). Between 2002 and 2004, the terms of entitlement An individual's right to receive a value or benefit provided by law. Commonly recognized entitlements are benefits, such as those provided by Social Security or Workers' Compensation. to unemployment compensation were made more stringent. As a result, in 2004, the proportion of unemployed persons receiving compensation dropped to 21 %. In addition, the payments themselves were sharply curtailed. As a result, despite the fact that the number of unemployed persons rose, total payments declined, from NIS 3.5 billion in 2001 and in 2002, to NIS 2.1 billion in 2004 (Ibid: Table 12). Increase in the Duration of Unemployment While the unemployment rate is slowly decreasing, the duration of unemployment is increasing. In 2004, 23% of unemployed women and 25.7% of unemployed men remained unemployed for over a year; in 1997, only 6% of men and the same percentage of women remained unemployed for that long. Workers Who Give Up Looking for Work Among the unemployed, there are persons who have given up looking for work. In 2004, their proportions among Jews amounted to 1.1 % of the Jewish Jew·ish adj. Of or relating to the Jews or their culture or religion. See Usage Note at Jew. Jew ish·ly adv. work force, compared with 0.8% in 2000. If we add those who have
given up finding work 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 persons who give up looking for work is greater
among Arab and "other" citizens ("Others" are
Christians Christians, name taken by the followers of several evangelical preachers on the American frontier, notably James O'Kelley, Abner Jones, and Barton W. Stone, all of whom were antisectarian. who are not Arabs, most of them immigrants from the former
Soviet Union). This is especially true for women: the proportion of Arab
men giving up on finding work increased in the course of four years from
4.1 % in 2000 to 7.9% of the work force of Arabs and Others in 2004,
while the proportion of Arab women giving up increased from 6.9% to
12.2%.
Part-Time Workers Who Desire Full-Time Jobs Another group that ought to be added to 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 2005, their proportions rose to 28.5%.
Distribution of National Income, 2000-2005
NIS millions * Constant 2005 prices
2000 2007 2002
Total National income 406,867 414,626 398,091
market prices
1. Workers' share: 305,668 315,111 301,063
compensation of
Israeli residents
Compensation: 281,654 290,705 277,746
resident
employees
Compensation: 37,498 36,750 35,210
self-employed
2. Employers' share:
domestic operating 37,314 24,960 15,303
surplus, not
including owner-
occupied dwellings
3. Net taxes on 60,879 61,980 64,909
domestic production
2003 2004 2005
Total National income 404,130 423,601 455,654
market prices
1. Workers' share: 295,350 306,484 319,808
compensation of
Israeli residents
Compensation: 270,657 281,453 293,961
resident
employees
Compensation: 35,132 34,106 35,700
self-employed
2. Employers' share:
domestic operating 26,767 36,052 46,196
surplus, not
including owner-
occupied dwellings
3. Net taxes on 65,565 66,157 69,355
domestic production
Notes: (1.) Excludes domestic income from rent and income from
properties and business activities abroad.
(2) National Income in market prices includes the share of workers
(salaried and self-employed), the share of employers, and net taxes
on domestic production.
Source: Adva Center analysis of figures received from the National
Accounts Department of the Central Bureau of Statistics, April 4,
2006.
Distribution of National Income, 2000-2005
Percentages
2000 2001 2002
Total National income
market prices 100 100 100
1. Workers' share:
compensation of 75 76 76
Israeli residents
Compensation: resident 66 67 67
employees
Compensation: 9 9 9
self-employed
2. Employers' share:
domestic operating 9 6 4
surplus, not including
owner-occupied
dwellings
3. Net taxes on 15 15 16
domestic production
2003 2004 2005
Total National income
market prices 100 100 100
1. Workers' share:
compensation of 73 72 70
Israeli residents
Compensation: resident 64 64 62
employees
Compensation: 9 8 8
self-employed
2. Employers' share:
domestic operating 7 9 10
surplus, not including
owner-occupied
dwellings
3. Net taxes on 16 16 15
domestic production
Source: Central Bureau of Statistics, Press Release, "Israel's
National Accounts for 2005," March 15, 2006.
Product Per Hour Rises; Compensation Per Hour Declines
2000-2005 * NIS * Constant 2005 Prices
All Sectors of the Economy
Compensation per hour Product per hour
Percentage Percentage
Year NIS change NIS change
2000 64.3 4.2% 93.6 4.6%
2001 66.4 3.4% 94.8 1.3%
2002 62.9 -5.3% 90.9 -4.1%
2003 61.5 -2.2% 91.6 0.7%
2004 63.2 2.9% 95.6 4.4%
2005 62.7 -0.9% 96.3 0.7%
Source: Adva Center analysis of figures received from the National
Accounts Department of the Central Bureau of Statistics, April 3,
Average Gross Salary of Employees
Selected Sectors of the Economy * by Gender * 2000 and 2004 * In
ascending order of gross salaries for men in 2004 * NIS * Constant
2005 prices
2000 2004 2000 2004
Total 45.2 44.8 37.4 37.7
Hotel and restaurant 30.3 27.2 24.3 24.5
services
Trade and repair of 36.6 35.9 28.2 28.1
motor vehicles
Manufacturing 43.5 44.7 30.7 34.5
Business activities 57.0 51.1 43.5 39.1
Education 55.6 53.0 43.4 41.6
Health, welfare and 53.5 53.5 39.3 38.7
social services
Banking, insurance 81.1 69.5 47.3 51.2
& finance
Sources: Adva Center analysis of Central Bureau of Statistics, Income
Survey, 2000 and 2004. Salaries of Senior Executives
Employees' Wages in Israel Relative to the Average Wage
by Job Sector 1994 and 2003 * Percentages * Monthly Average
Up to average wage--cumulative
Up to Up to Up to
50% of the 75% of the average
Economic sector Year average average wage
wage wage
Total 1994 41.9% 61.4% 72.5%
2003 41.1% 61.4% 73.0%
Agriculture 1994 68.0% 85.8% 92.0%
2003 51.2% 73.4% 84.2%
Manufacturing 1994 34.4% 56.8% 69.4%
2003 25.4% 47.6% 63.2%
Electricity, 1994 33.1% 60.6% 73.8%
water supply
and 2003 40.2% 67.2% 80.3%
construction
Trade, repairs, 1994 51.7% 73.1% 83.4%
hotel and
restaurant 2003 46.6% 70.5% 82.2%
services
Transport 1994 24.1% 42.6% 56.0%
2003 28.2% 48.6% 62.7%
Banking and 1994 46.4% 63.4% 72.6%
business
activities 2003 46.7% 63.8% 72.3%
Social 1994 41.2% 58.9% 70.8%
services
2003 43.4% 62.2% 73.4%
Other services 1994 54.4% 72.5% 82.4%
2003 55.6% 73.5% 83.0%
More than average wage
Up to twice Up to three Three times
the average times the the average
Economic sector Year wage average wage or
wage more
Total 1994 18.7% 5.5% 3.3%
2003 17.7% 5.5% 3.8%
Agriculture 1994 6.4% 1.1% 0.5%
2003 12.1% 2.6% 1.2%
Manufacturing 1994 20.7% 6.3% 3.6%
2003 22.6% 8.4% 5.8%
Electricity, 1994 17.5% 5.1% 3.6%
water supply
and 2003 14.8% 3.1% 1.9%
construction
Trade, repairs, 1994 11.6% 2.8% 2.3%
hotel and
restaurant 2003 13.3% 2.6% 1.8%
services
Transport 1994 25.1% 12.9% 6.0%
2003 23.6% 8.8% 5.0%
Banking and 1994 17.7% 5.1% 4.5%
business
activities 2003 15.8% 6.5% 5.4%
Social 1994 20.8% 5.6% 2.8%
services
2003 18.8% 5.0% 2.8%
Other services 1994 12.7% 2.8% 2.0%
2003 11.9% 2.9% 2.1%
Notes: The total includes also employees whose field of employment is
unknown
Source: Adva Center analysis of figures received from the Research and
Planning Administration of the National Insurance Institute, March 9,
2006
Total Employer Outlays for Fringe Benefits
as a Percentage of Total Salary Payments in Manufacturing * by Degree
of Technological Sophistication * 2000-2005 * Thousands of workers *
NIS millions * Constant 2005 Prices
2000 2007 2002
Traditional Technological
Industries
Employees (thousands) 132.1 124.9 120.4
Wages of employees 10,206 10,199 9,552
Total employers' outlays 1,501 1,503 1,505
for fringe benefits
Fringe benefit outlays 14.7% 14.7% 15.8%
as percentage of wages
Mixed Traditional
Technological Industries
Employees (thousands) 88.7 86.8 83.9
Wages of employees 8,361 8,321 7,764
Total employers' outlays 1,391 1,378 1,285
for fringe benefits
Fringe benefit outlays 16.6% 16.6% 16.5%
as percentage of wages
Mixed Hi-tech Industries
Employees (thousands) 58.0 56.8 54.4
Wages of employees 8,523 8,735 8,181
Total employers' outlays 1,736 1,776 1,745
for fringe benefits
Fringe benefit outlays 20.4% 20.3% 21.3%
as percentage of wages
Elite Hi-tech Industries
Employees (thousands) 66.7 67.2 64.1
Wages of employees 12,024 12,361 11,372
Total employers' outlays 2,657 2,739 2,610
for fringe benefits
Fringe benefit outlays 22.1% 22.2% 23.0%
as percentage of wages
2003 2004
Traditional Technological
Industries
Employees (thousands) 114.1 115.0
Wages of employees 9,197 9,526
Total employers' outlays 1,493 1,510
for fringe benefits
Fringe benefit outlays 16.2% 15.9%
as percentage of wages
Mixed Traditional
Technological Industries
Employees (thousands) 83.2 83.1
Wages of employees 7,798 8,042
Total employers' outlays 1,322 1,332
for fringe benefits
Fringe benefit outlays 16.9% 16.6%
as percentage of wages
Mixed Hi-tech Industries
Employees (thousands) 52.0 51.7
Wages of employees 8,002 8,269
Total employers' outlays 1,689 1,674
for fringe benefits
Fringe benefit outlays 21.1% 20.2%
as percentage of wages
Elite Hi-tech Industries
Employees (thousands) 62.9 66.0
Wages of employees 11,272 11,869
Total employers' outlays 2,497 2,537
for fringe benefits
Fringe benefit outlays 22.2% 21.4%
as percentage of wages
Note: The category of Elite Hi-tech Industries excludes the
sub-category of aircraft.
Sources: Adva Center analysis of Central Bureau of Statistics,
Manufacturing Indices, various years; figures received directly from
the Business Department of the Central Bureau of Statistics.
Workers Earning up to Two-Thirds of the Median Wage
1988-2004 * NIS * Constant 2004 prices
1988 1992 1997 2007 2004
Median wage 4,799 4,374 4,796 5,304 5,156
2/3 of median wage 3,200 2,916 3,197 3,536 3,435
(low wage)
Low-wage earners as a 28% 28% 28% 27% 26%
percentage of all
workers
Salaries of low-wage 9% 8% 8% 8% 8%
earners as a
percentage of all
salaries
Sources: Adva Center analysis of Central Bureau of Statistics, Income
Surveys files, various years.
Workers in the Top Gentile
NIS * Constant 2004 prices
1988 1992 1997 2007 2004
Threshold of the 21,324 23,738 28,156 32,913 29,711
top centile
Top centile workers 1% 1% 1% 1% 1
as a percentage of
all workers
Salaries of top 5% 6% 7% 7% 6%
centile workers as
a percentage of
all salaries
Sources: Adva Center analysis of Central Bureau of Statistics, Income
surveys files, various years.
Low-Wage Earners and Top Gentile Earners
1988-2004 * Percentages
1988 1992 1997 2007 2004
Low wage group
Men 34 34 36 32 33
Women 66 66 64 68 67
Jews 95 94 88 86 88
Arabs NA NA 12 14 12
Jews born in Israel: 27 26 22 21 19
fathers born in
Asia-Africa
Jews born in Israel: 15 13 11 10 11
fathers born in
Europe-America
Jews born in Israel: 10 10 11 15 19
fathers born in
Israel
Immigrants from -- 20 20 25 23
former USSR,
since 1990
Persons with up 73 68 64 59 55
to 12 years of
schooling
Persons with 13-15 17 20 24 27 27
years of schooling
Persons with 16 10 12 12 14 17
years or more of
schooling
Top Centile
Men 94 94 90 92 88
Women 6 6 10 8 12
Jews 100 100 97 97 97
Arabs NA NA 3 3 3
Jews born in Israel: 9 10 12 11 17
fathers born in
Asia-Africa
Jews born in Israel: 53 38 46 34 38
fathers born in
Europe-America
Jews born in Israel: 9 9 6 16 13
fathers born in Israel
Immigrants from -- 3 1 4 3
former USSR,
since 1990
Persons with up to 17 18 12 11 11
12 years of
schooling
Persons with 13-15 16 20 18 17 12
years of schooling
Persons with 16 67 60 70 73 77
years or more of
schooling
Note: It should be noted that in 1988 and 1992, the figures for Arabs
in both wage categories are limited in reliability due to the fact
that the income surveys conducted in those years did not include the
entire Arab population.
Source: Adva Center analysis of the Central Bureau of Statistics,
Income Surveys files, various years.
Women: New Employees by Economic Sector
2000-2004 * Economic Sectors With at Least 2,000 New Women Employees *
In Descending Order of Number of New Women Employees * Thousands and
Percentages
New Female Percentage
Employees Changes
2000-2004 1999-2004
Total 140.0 14.6%
Health, Welfare and Social Services 35.0 21.9%
Business Activities 32.4 33.3%
Thereof: Other business activities 16.5 29.9%
Thereof: Security and cleaning 9.4 76.4%
activities
Education 28.8 14.1%
Trade and Repair of Motor Vehicles 16.8 15.0%
Transport, Storage and Communications 9.9 28.1%
Thereof: Telecommunications 6.7 71.3%
Banking, Insurance & Finance 6.9 16.5%
Hotel and Restaurant Services 5.2 13.3%
Community, Social, Personal and 5.0 10.2%
Other Service
Manufacturing: Electronic Components 3.7 55.2%
Manufacturing: Food Products 2.9 20.6%
Construction 2.3 27.1%
Manufacturing: Metal Products 2.0 40.8%
Note: The category of Business Activities includes the sub-category of
Research and Development.
Sources: Adva Center analysis of Central Bureau of Statistics, Labour
Force Surveys, various years.
Men: New Employees by Economic Sector
2000-2004 * Economic Sectors with at least 2,000 New Men Employees *
In Descending Order of Number of New Men Employees Thousand and
Percentage
New Men Percentage
Employees Changes
2000-2004 1999-2004
Total 124.1 10.6%
Business activities 63.0 49.6%
Therein: Security and cleaning 23.0 94.7%
activities
Therein: Business activities 22.3 42.1%
Therein: Computer and related 13.3 44.2%
services
Trade and Repair of Motor Vehicles 26.3 16.6%
Transport, Storage and 8.8 8.8%
Communications
Therein: Telecommunications 6.3 57.8%
Manufacturing: Food Products 8.7 30.4%
Health, Welfare and Social Services 8.3 15.9%
Hotel and Restaurant Services 8.0 16.7%
Education 6.7 10.4%
Construction 6.1 6.6%
Manufacturing: Electronic 6.1 62.9%
Components
Community, Social, Personal and 6.3 10.6%
Other Services
Manufacturing: Industrial Equipment
for Control
and Supervision, Medical and 3.3 21.7%
Scientific Equipment
Manufacturing: Plastic and Rubber 2.1 16.2%
Products
Note: 1. The category of Business Activities includes the sub-category
of Research and Development.
Sources: Adva Center analysis of Central Bureau of Statistics, Labour
Force Surveys, various years.
Hi-Tech Workers
by Gender * 2000-2004 * Total Workers and Percentage of New Workers by
Sub-Sector * Thousands
2000 2007 2002 2003 2004
High Tech
Sector-Total 189.3 207.5 193.2 192.6 197.1
Men 123.1 134.6 126.1 127.8 131.5
Women 66.0 72.7 67.0 64.8 65.5
Percentage of 22.9 11.4 -8.5 1.7 3.7
New Workers: Men
Percentage of 13.9 6.7 -5.7 -2.2 0.7
New Workers: Women
Manufacturing in the 89.2 92.2 89.3 89.7 93.4
High-Tech Sector
Men 60.9 61.5 61.0 62.5 65.0
Women 28.3 30.5 28.1 27.2 28.4
Percentage of 6.9 0.6 -0.5 1.5 2.5
New Workers: Men
Percentage of 4.4 2.2 -2.4 -0.9 1.2
New Workers: Women
Services
(knowledge-intensive)
in the Hi-Tech Sector 100.1 115.3 103.9 102.9 103.7
Men 62.3 73.1 65.1 65.3 66.5
Women -37.7 42.2 38.9 37.7 37.2
Percentage of 16.0 10.8 -8.0 0.2 1.2
New Workers: Men
Percentage of 9.5 4.5 -3.3 -1.2 -0.5
New Workers: Women
Sources: Adva Center analysis of Central Bureau of Statistics, Labour
Force Surveys, various years
Average Wage of Hi-Tech Workers
2001-2004 * NIS * Constant 2005 Prices
2001 2002 2003 2004
High Tech Sector-Total 15,452 14,217 13,826 14,056
Manufacturing in the High Tech 14,783 14,215 14,033 14,094
Sector
Thereof: Electronic components 11,949 12,181 12,116 10,789
Thereof: Electronic 17,917 16,911 16,904 17,829
communications equipment
Thereof: Industrial equipment 17,411 16,611 16,272 16,707
for control and supervision,
medical and scientific
equipment
Thereof: Transport equipment 13,764 13,332 13,216 13,231
(including aircraft manufacture)
Services (knowledge-intensive) 15,969 14,219 13,661 14,026
in the High Tech Sector
Thereof: Communications 10,888 9,914 9,656 9,167
Thereof: Computer and related 17,903 15,837 15,095 15,497
services
Thereof: Research and 17,025 16,000 15,851 17,326
development
Sources: Adva Center analysis of Central Bureau of Statistics, Labour
Force Surveys, various years.
Salaries of Senior Executives
Average Annual Salary Bill of Senior Executives in Companies Listed on
the Tel Aviv Stock Exchange * 2000-2004 * Constant 2004 prices * NIS
million
200 1.47 -2.8%
2001 1.43 -2.9%
2002 1.42 -0.7%
2003 1.47 3.4%
2004 1.73 17.7%
Source: Globes magazine, "Executive Salaries 2004," April 21, 2005
Note: Table made from bar graph.
New Employees
by Type of Job * 2000-2005 * Thousands * Percentage Changes
full time part time
2000 69.3 4.8% 7.6 1.3%
2001 -20.9 -1.4% 48.7 8.5%
2002 48.9 3.3% -16.1 -2.6%
2003 8.6 0.6% 37.7 6.2%
2004 5.2 0.3% 59.2 9.2%
2005 53.8 3.5% 30.4 4.3%
Note: Does not include persons temporarily absent from work.
Sources: Adva Center analysis of Central Bureau of Statistics, Press
Release of February 28, 2006, "Statistics from the Manpower Survey
for the Last Quarter of 2005 and for the Year 2005"; Current
Statistics, Labour Force Surveys 2004, Publications # 13/2005.
Note: Table made from bar graph.
Men: New Employees
by Type of Job * 2000-2005 * Thousands * Percentage Changes
full time part time
2000 35.5 3.8% 1.4 0.8%
2001 -7.9 -0.8% 25.6 13.6%
2002 22.7 2.4% -15.3 -7.2%
2003 4.5 0.5% 19.8 10.0%
2004 4.5 0.5% 33.0 15.2%
2005 37.2 3.8% 1.7 0.7%
Note: Does not include persons temporarily absent from work.
Sources: Adva Center analysis of Central Bureau of Statistics, Press
Release of February 28, 2006, "Statistics from the Manpower Survey
for the Last Quarter of 2005 and for the Year 2005"; Current
Statistics, Labour Force Surveys 2004, Publications # 13/2005.
Note: Table made from bar graph.
Women: New Employees
by Type of Job * 2000-2005 * Thousands * Percentage Changes
full time part time
2000 33.7 6.7% 6.2 1.6%
2001 -13.3 -2.5% 23.2 6.0%
2002 26.1 5.0% -0.8 -0.2%
2003 4.2 0.8% 17.8 4.4%
2004 0.7 0.1% 26.2 6.1%
2005 16.6 3.0% 28.7 6.3%
Note: Does not include persons temporarily absent from work.
Sources: Adva Center analysis of Central Bureau of Statistics, Press
Release of February 28, 2006, "Statistics from the Manpower Survey
for the Last Quarter of 2005 and for the Year 2005"; Current
Statistics, Labour Force Surveys 2004, Publications # 13/2005.
Note: Table made from bar graph.
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