Integration of the Arab Population into the Labor Market Michal Tzuk, Senior Deputy Director General Ministry of Labor And Social Affairs

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1 Integration of the Arab Population into the Labor Market Michal Tzuk, Senior Deputy Director General Ministry of Labor And Social Affairs September, 2017

2 Labor Market Trends - Macro Analysis Unemployment Rate & Participation Rate Population Aged % 14% 12% 10% 8% 6% 4% 2% 0% 64,07% 4,20% 65% 64% 63% 62% 61% 60% 59% 58% 57% 56% Source: Labor Force Survey, Central Bureau of Statistics

3 Moving Towards 2020 Targets Employment Rates, 2010,2016 & 2020 Targets Among Target Populations, Ages % 70% 60% 63% 63% 60,3% 78% 76,5% 75,4% 74,3% 50% 41% 53,7% 40% 35,4% 72,8% 77,3% 77,3% 71,6% 71,1% 30% 51,7% 56,2% 20% 10% 27,1% 32,4% 39,8% 0% Arab Women Haredi Men Haredi Women Arab Men Total Population Target Yearly Target

4 Unemployment - Extended Definition, % Unemployed 20% 3,9% Involuntary parttime workers 15% 10,6% Discourage workers 10% 5% 2,5% 3,3% 9,2% 0,4% 1,0% 0,4% 0,7% 3,1% 2,7% 5,8% 4,8% 5,0% 5,3% 0% Arab Men Arab Women Non-Orthodox Jews - Men Non-Orthodox Jews - Women Total

5 Source: Poverty and Social Gaps Report National Insurance Institute Poverty line is defined as 50% of the median family income. Poverty Rate Households, 2015 Poverty Rate by Employment Status 100% 90% 80% 93,4% 74,4% Before taxes and transfers After taxes and transfers 70% 60% 100% 90% 80% 70% 60% 50% Poverty Rate by Sectors Before taxes and transfers After taxes and transfers 61,3% 57,5% 53,3% 48,7% 50% 40% 30% 20% 10% 0% 36,9% 25,9% 29,2% 19,1% 8,0% 5,6% Not Employed One Earner Two Earners Total 40% 30% 20% 29,2% 19,1% 10% 0% Ultra-Orthodox Arabs Total

6 Who will Form the Future Labor Market? Population Distribution by Age Groups Population Distribution Age Population Distribution Age 5-9 Arabs 19% Haredi 7% Non- Haredi Jews 74% Arabs 25% Haredi 18% Non- Haredi Jews 57% Source: Central Bureau of Statistics 2014

7 Education Distribution of the Arab Population Compared to the Jewish Population, by Years of Schooling and Gender, Percentages (2015) 93,8 11+ YEARS OF EDUCATION 68,1 67,6 91, YEARS OF EDUCATION 5,7 7,6 31, Jewish Women Arab Women Jewish Men Arab Men Source: Special analyzes of the CBS Human Resources Survey Research Administration, 2015 for the age group

8 Education Arab Students in the Higher Education System in Israel % 5.8% 3.5% 3.7% 6.1% 6.2% 3.9% 6.5% 4.3% 7.9% 4.4% 8.7% 4.8% 9.0% 5.2% 9.8% 5.7% 10.3% % 10.3% 9.8% 10.0% 10.8% 11.3% 12.2% 13.1% 14.3% First degree students Graduate students PhD students

9 Occupation Distribution of the Arab Population Compared to the Jewish Population by Occupation and Gender, in Percentages Jewish Women 8,2 32,5 17,3 11,6 21,1 2,5 3,9 Arab Women 2,6 36,4 5,9 8,3 29,9 2,9 10,9 Jewish Men 16 23,2 13,2 4,3 12,9 20,2 3,4 Arab Men 5,3 11,4 4,8 2,6 14,5 43,9 13,5 Managers Academics Practical engineers Officials Sales and service workers Proffesional Workers Source: Special analyzes of the CBS Human Resources Survey Research Administration, 2015 for the age group

10 Main Barriers to Integration in the Labor Market - Especially for Arab Women Education & Skills Economic cost culture Infrastructure

11 How Do We Do It? Individual Community Infrastructure Employers Training

12 Individual & Community The Ministry of Labor & Social Affairs has a network of 22 employment centers in a broad geographical layout (67 Arab municipalities). The program focuses on populations outside the labor market, Community work by outreach and training. The centers staff are change agents coming from and working for the community. Soft Skills VET Employer Relations Career Guidance Job Placement

13 One Stop Center (Q1+Q2) participants 8,008 (About 4,800 women) 9,861 (5,941 women) 5,592 Total 3,452 women (62%) Rate of placement at the centers 53.6% 79% Total 69% women

14 Training & Skills Practical Engineering studies for Bedouins in the South Imtiaz - Academics guidance & placement VOT voucher Program In students Million NIS About 500 participants each year million NIS million NIS By July 2017, 988 training vouchers for the Arab population

15 Diversity in the Employment Market Workers born between ,2 Ultra Orthodox ,4 Arabs 38,2 Non Arabs/Ultra Orthodox jews - Men Non Arabs/Ultra Orthodox jews - Women Source: Ministry of Finance processing of Central Bureau of Statistics data, 2014

16 High-tech - Diversity Decreases with Wages Born in in high-tech, lowest quarter )(average salary of 7,000 NIS 2,7 3,4 Ultra Orthodox Arabs ,3 Non Arabs/Ultra Orthodox jews - Men Non Arabs/Ultra Orthodox jews - Women Source: Ministry of Finance processing of Central Bureau of Statistics data, 2014

17 High-tech - Diversity Decreases with Wages Born in in high-tech, second quarter )(average wage of NIS 13,500 1,7 1,6 Ultra Orthodox 36.3 Arabs 60,3 Non Arabs/Ultra Orthodox jews - Men Non Arabs/Ultra Orthodox jews - Women Source: Ministry of Finance processing of Central Bureau of Statistics data, 2014

18 High-tech - Diversity Decreases with Wages Born in in high-tech, third quarter )(average wage of NIS 20, ,6 Ultra Orthodox 26.6 Arabs 70,8 Non Arabs/Ultra Orthodox jews - Men Non Arabs/Ultra Orthodox jews - Women Source: Ministry of Finance processing of Central Bureau of Statistics data, 2014

19 High-tech - Diversity Decreases with Wages Born in in high-tech, highest quarter )(average wage of NIS 34,500 0,3 1,3 Ultra Orthodox 17.7 Arabs 80,7 Non Arabs/Ultra Orthodox jews - Men Non Arabs/Ultra Orthodox jews - Women Source: Ministry of Finance processing of Central Bureau of Statistics data, 2014

20 Integration of Arab population in High-Tech 3 Years Program Opens Doors Gives Experience Results 920 Placements MNCs & Startups

21 Employers Encouraging Entrepreneurship & SMBs : o The Israeli Small & Medium Businesses Agency (SBA) encourages initiatives to establish new businesses. o 3 business incubators for the Arab sector - Yarka, Shefar-Amr, and Nazereth. o 'Sawa' program: Micro-Finance Loan Fund for Arab entrepreneurs women. Employers Wage Subsidies Industrial Areas

22 Infrastructures 0-3 Child day care Infrastructure:25% of the total budget to Arab municipalities. Subsidies: In order to make it easier for Arab women, subsidies and reception to the day care centers are not affected by the volume of work Transportation Transportation to Distant Workplaces, with the ministry of transportation

23 Workers Rights Campaign In Arabic Goals: Raising awareness to labor laws, rights and Enforcement in Arab society Raising awareness for employee rights website launched in Arabic, among Arab men and women aged How? Information about Minimum Wage, Compensation for overtime, weekly rest & The obligation to allocate for pension Raising awareness and referral to the Ministry of Labor and Social Affairs website molsa.gov.il Raising awareness of the possibility of addressing and complaining about violations of employee rights.

24 Workers Rights Campaign-In Arabic TV - advertising clips Printed press - newspaper ads Radio- recorded commercials Digital - advertising clips and banners Social networks - Sponsored videos and posts

25 Workers Rights Campaign-Campaign results For example: 76,000 Views at the Arabic Employee Rights Website ( ) at the same time, the Hebrew-language employee rights site registered 57,000 hits During the month of the campaign we received about 90 complaints phone calls from applicants from Arab society; This compares to 20 calls received in January- April 2017

26 Thank You