The Effect of the War and Employment Trends in Arab Society

Abstract

  • The “Swords of Iron” War had an immediate impact on employment in Arab society and caused a sharp increase in the rate of absentees from workplaces, as well as to a marked decrease in employees’ working hours and income.
  • Following the war, tension increased between Arab society and Jewish society and the feeling of security among Arab women employed in a mixed environment was undermined. It was found that these women’s employment and income was impacted at a sharper rate compared with women employed in an Arab environment.
  • Initial testimonies indicate a partial recovery in employment after about a month and a half. However, the increased tension between Arabs and Jews and the decreased economic ties between them may have a long-term negative effect which will impact the accelerated integration of Arab women in the job market in Israel.
  • Since 2012 there has been a sharp increase in the rate of employment among Arab women of the main employment ages (25-66) and this reached 45% in the first half of 2023. Assuming that this trend will continue, the employment rate of Arab women is expected to continue growing to 53% in 2030, according to the government target.
  • The employment rate of Arab men of the main employment ages is actually much higher than that of women, but in the last revaluation it increased at a slow pace and stood at about 78% in 2023. Assuming that this trend will continue, the employment rate of Arab men is expected to be lower than the target (83%) and to total about 79% in 2030. Moreover, the employment rate of men aged 15 and over will not grow, but will remain stable.
  • The increase in employment rate included women of all age groups, while among men various trends were noted: stability among young men versus a fast increase among older men (45+). The increase in employment of older men is of great importance since the main gap in employment rates between Arab and Jewish men stems from this age group.
  • The increase in employment in Arab society was not only evident in employment rates, but was also accompanied by a decrease in the rate of part-time employees, among both women and men, especially among those employed part-time unwillingly.
  • At the same time, it appears that the gaps in employment quality between Jews and Arabs have remained large and have hardly decreased: Arab women’s income from employment remains about 70% of Jewish women’s iincome from employment, while among men the ratio of income has risen from about 57% to about 62%.
  • Arab employees continue to be concentrated in fields where the salary is relatively low, and their presence is sparse in fields which pay the highest average salary: information and technology (Hi-tech), f inance and insurance, and professional, scientific and technical services.
  • The Herfindahl-Hirschman Index indicates a high concentration of sectors employing Arabs (men and women) compared to Jews. While the power of concentration has decreased in the period examined, the gap in comparison to Jewish society has remained large, and this means a lowervariety of employment in Arab society.

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