The price of reserve duty for the economy: up to 68,000 shekels per month per soldier

The cost to the economy of the absence of a reservist aged 31 to 39 reaches 68,000 shekels per month. This is according to a new report published on Tuesday by the chief economist at the Ministry of Finance, Shmuel Abramzon.

The economist presented a review on the characteristics of those absent from work due to reserve duty and the economic cost to the state. An examination of the data shows that the burden is concentrated mainly among non-Haredi Jewish men aged 25–44, who make up about 83% of those absent, even though their share of the workforce is only about 36%.

However, the review shows that the population of reservists differs from the group of non-Haredi Jewish men in these age groups in several significant aspects. Among reservists, there is a higher rate of students (13% compared to 6% among those who do not serve). There is also a higher rate of fathers of young children (63% compared to 51%) and a lower rate of self-employed workers (8% compared to 14%).

The data from the chief economist also shows that reservists have an income about 42% higher than that of their peers who were not absent. The findings emphasize that reserve duty creates a broad economic cost, which is not limited to the employee's absence alone, but also affects households, spouses, and the career and study path.

Based on these data, the updated estimate for the economic cost of a month of reserve duty is significantly higher than the previous estimate:

• For non-Haredi Jewish men aged 22–30: about 39,000 shekels per month (previously 33,000).

• For those aged 31–39: about 68,000 shekels per month (previously 54,000).

It should be noted that the cost of service for about 60,000 reservists per month, according to Bank of Israel calculations, reaches about 2.3 billion shekels.