integration of the arab population into the labor market · integration of the arab population into...

Integration of the Arab Population into the Labor Market

Michal Tzuk, Senior Deputy Director General Ministry of Labor And Social Affairs

September, 2017

Unemployment Rate & Participation Rate Population Aged 15+

Labor Market Trends - Macro Analysis

Source: Labor Force Survey, Central Bureau of Statistics

4,20%

64,07%

56%

57%

58%

59%

60%

61%

62%

63%

64%

65%

0%

2%

4%

6%

8%

10%

12%

14%

16%

27,1%

39,8%

56,2%

71,6% 71,1%

32,4%

51,7%

72,8% 77,3% 77,3%

41%

63% 63%

78% 76,5%

35,4%

53,7%

60,3%

75,4% 74,3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Arab Women Haredi Men Haredi Women Arab Men Total Population

2010 2016 2020 Target Yearly Target - 2016

Moving Towards 2020 Targets

Employment Rates, 2010,2016 & 2020 Targets Among Target Populations, Ages 25-64

Unemployment - Extended Definition, 2015

5,8%

9,2%

4,8% 5,0% 5,3%

3,3%

10,6%

1,0% 3,1% 2,7%

2,5%

3,9%

0,4%

0,4% 0,7%

0%

5%

10%

15%

20%

25%

Arab Men Arab Women Non-OrthodoxJews - Men

Non-OrthodoxJews - Women

Total

Unemployed

Involuntary part-time workers

Discourage workers

Poverty Rate by Employment Status

Poverty Rate by Sectors

93,4%

36,9%

8,0%

29,2%

74,4%

25,9%

5,6%

19,1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Not Employed One Earner Two Earners Total

Before taxes and transfers

After taxes and transfers

61,3% 57,5%

29,2%

48,7% 53,3%

19,1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Ultra-Orthodox Arabs Total

Before taxes and transfers

After taxes and transfers

Poverty Rate – Households, 2015

Source: Poverty and Social Gaps Report 2015 - National Insurance Institute Poverty line is defined as 50% of the median family income.

Who will Form the Future Labor Market?

Population Distribution by Age Groups

Population Distribution Age 5-9

Population Distribution Age 25-64

Non-Haredi Jews 74%

Arabs 19%

Haredi 7%

Non-Haredi Jews 57%

Arabs 25%

Haredi 18%

Source: Central Bureau of Statistics 2014

Distribution of the Arab Population Compared to the Jewish Population, by Years of Schooling and Gender, Percentages (2015)

Education

32

67,6

7,6

91,9

31,4

68,1

5,7

93,8

0 10 20 30 40 50 60 70 80 90 100

0-10 YEARS OF EDUCATION

11+ YEARS OF EDUCATION

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

9.7% 10.3% 9.8% 10.0% 10.8% 11.3% 12.2% 13.1% 14.3%

5.8% 6.1% 6.2%

6.5%

7.9% 8.7%

9.0%

9.8%

10.3%

3.5% 3.5% 3.7%

3.9%

4.3% 4.4%

4.8%

5.2%

5.7%

22.827 24.863 24.638 26.214 29.298 31.414 34.452 37.493 40.639

-

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

45.000

2007 2008 2009 2010 2011 2012 2013 2014 2015First degree students Graduate students PhD students

Arab Students in the Higher Education System in Israel

Occupation

5,3

16

2,6

8,2

11,4

23,2

36,4

32,5

4,8

13,2

5,9

17,3

2,6

4,3

8,3

11,6

14,5

12,9

29,9

21,1

43,9

20,2

2,9

2,5

13,5

3,4

10,9

3,9

Arab Men

JewishMen

ArabWomen

JewishWomen

Distribution of the Arab Population Compared to the Jewish Population by Occupation and Gender, in Percentages

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

Employers

Infrastructure

Training

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

Individual & Community

One Stop Center

2017 (Q1+Q2) 2016 2015

5,592 Total 3,452 women (62%)

9,861 (5,941 women)

8,008 (About 4,800 women)

participants

79% Total

69% women

53.6%

Rate of placement at the centers

Training & Skills

• Practical Engineering studies for Bedouins in the South

In 2013-2017 389 students

2017- 7.5 Million NIS

• ‘Imtiaz’ -Academics guidance & placement

About 500 participants each year

2017- 6.9 million NIS

• VOT voucher Program

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

17,4

38,2

40.2

Ultra Orthodox

Arabs

Non Arabs/UltraOrthodox jews -Men

Non Arabs/UltraOrthodox 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

44,3

49.5

Ultra Orthodox

Arabs





Born in 1985-1975 in high-tech, second quarter (average wage of NIS 13,500)

1,7 1,6

60,3

36.3

Ultra Orthodox

Arabs





Born in 1975-1975 in high-tech, third quarter (average wage of NIS 20,500)

1 1,6

70,8

26.6

Ultra Orthodox

Arabs





Born in 1975-1975 in high-tech, highest quarter (average wage of NIS 34,500)

0,3 1,3

80,7

17.7

Ultra Orthodox

Arabs



Integration of Arab population in High-Tech

3 Years Program

Opens Doors

Gives Experience

Results

920 Placements

MNCs & Startups

• 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

Employers

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

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