Integration of the Arab Population into the Labor Market Michal Tzuk, Senior Deputy Director General Ministry of Labor And Social Affairs September, 2017
Labor Market Trends - Macro Analysis Unemployment Rate & Participation Rate Population Aged 15+ 16% 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
Moving Towards 2020 Targets Employment Rates, 2010,2016 & 2020 Targets Among Target Populations, Ages 25-64 80% 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 2010 2016 2020 Target Yearly Target - 2016
Unemployment - Extended Definition, 2015 25% 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
Source: Poverty and Social Gaps Report 2015 - 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
Who will Form the Future Labor Market? Population Distribution by Age Groups Population Distribution Age 25-64 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
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 91,9 0-10 YEARS OF EDUCATION 5,7 7,6 31,4 32 0 10 20 30 40 50 60 70 80 90 100 Jewish Women Arab Women Jewish Men Arab Men Source: Special analyzes of the CBS Human Resources Survey Research Administration, 2015 for the 20-64 age group
Education Arab Students in the Higher Education System in Israel 45.000 22.827 24.863 24.638 26.214 29.298 31.414 34.452 37.493 40.639 40.000 35.000 30.000 25.000 20.000 3.5% 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% 15.000 10.000 5.000-9.7% 10.3% 9.8% 10.0% 10.8% 11.3% 12.2% 13.1% 14.3% 2007 2008 2009 2010 2011 2012 2013 2014 2015 First degree students Graduate students PhD students
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 20-64 age group
Main Barriers to Integration in the Labor Market - Especially for Arab Women Education & Skills Economic cost culture Infrastructure
How Do We Do It? Individual Community Infrastructure Employers Training
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
One Stop Center 2015 2016 2017 (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
Training & Skills Practical Engineering studies for Bedouins in the South Imtiaz - Academics guidance & placement VOT voucher Program In 2013-2017 389 students 2017-7.5 Million NIS About 500 participants each year 2017-6.9 million NIS 2017-16 million NIS By July 2017, 988 training vouchers for the Arab population
Diversity in the Employment Market Workers born between 1975-1985 4,2 Ultra Orthodox 40.2 17,4 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
High-tech - Diversity Decreases with Wages Born in 1975-1985 in high-tech, lowest quarter )(average salary of 7,000 NIS 2,7 3,4 Ultra Orthodox Arabs 49.5 44,3 Non Arabs/Ultra Orthodox jews - Men Non Arabs/Ultra Orthodox jews - Women Source: Ministry of Finance processing of Central Bureau of Statistics data, 2014
High-tech - Diversity Decreases with Wages Born in 1985-1975 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
High-tech - Diversity Decreases with Wages Born in 1975-1975 in high-tech, third quarter )(average wage of NIS 20,500 1 1,6 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
High-tech - Diversity Decreases with Wages Born in 1975-1975 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
Integration of Arab population in High-Tech 3 Years Program Opens Doors Gives Experience Results 920 Placements MNCs & Startups
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
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
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 18-50 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.
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
Workers Rights Campaign-Campaign results For example: 76,000 Views at the Arabic Employee Rights Website (5.5.2017-8.6.2017) 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
Thank You