Haredi Labor Market Absence Costs Average Israeli 3,500 NIS Annually
A new economic analysis reveals that low Haredi employment costs the average Israeli 3,500 NIS annually, as experts evaluate party proposals on labor market integration ahead of the elections.
The underrepresentation of ultra-Orthodox men in the labor market imposes a silent tax of approximately 3,500 NIS per year on the average Israeli worker, according to data from the Israel Democracy Institute. Institute calculations indicate that if Haredi employment rates matched those of non-Haredi Jews, state revenues from direct labor taxes in 2025 alone would rise by about 9.5 billion NIS. Similarly, employment rates among Arab women remain below the national average, prompting experts to examine how various political parties plan to address these critical economic challenges ahead of the upcoming elections.
Party Platforms and Expert Analysis
In collaboration with experts from the Israel Democracy Institute, the Berl Katznelson Foundation, the Arloorozov Forum, and the Kohelet Policy Forum, economic analysts evaluated party proposals concerning labor market integration and the cost of living. While parties such as Yeshar, Beyachad, Yisrael Beytenu, The Democrats, and the Joint List presented distinct policy outlines, the Likud, Shas, and Otzma Yehudit parties declined to respond, leading analysts to assess their positions based on past government actions and public statements.
Proposals addressing ultra-Orthodox employment largely focus on financial incentives, core curriculum education, and military or national service requirements. For instance, Yeshar and Yisrael Beytenu advocate conditioning state benefits and allowances on service and employment, whereas The Democrats emphasize structural changes in education and the enforcement of the draft. Conversely, expert reviews note that current coalition policies under right-wing factions have historically maintained financial support for yeshivas without enforcing core studies, drawing criticism from economic research institutions for disincentivizing workforce participation.
Bridging Gaps in Arab Society
Regarding the low employment rates among Arab women, proposed solutions emphasize expanding subsidized daycare, improving public transportation, and enhancing vocational training programs through specialized employment centers. While organizations like the Arloorozov Forum praised plans connecting professional training with employer demands, experts pointed out that several party responses lacked concrete budgetary figures and numerical targets to measure long-term success.
