Histadrut calls to extend unemployment benefits
369,000 job seekers might be left with no benefit
The chairman of the Histadrut labor federation called on Prime Minister Benjamin Netanyahu on Tuesday to extend unemployment benefits for Israelis currently out of work until the end of August.
“I am turning to you in light of the economic danger hovering above hundreds of thousands of job seekers who are unemployed or have been placed on unpaid leave, who are expected to finish their unemployment days quota and, in the absence of an occupational alternative, are expected to be left with no income at all,” wrote Arnon Bar-David in a letter to Netanyahu and Finance Minister Israel Katz.
On Monday, data published by the National Insurance Institute (Bituah Leumi) showed that over 369,000 job seekers are likely to be left with no benefits should they fail to return to work by August. A further 100,000 job seekers will remain eligible for partial or full benefits.
The eligibility period for thousands of young workers is currently scheduled to expire at the end of June.
“Given the absence of alternative occupational options, without a universal extension of unemployment benefits for a significant period – until the end of August – hundreds of thousands are expected to remain without unemployment pay, and are likely to find themselves without any source of income,” said Bar-David.
“This is a devastating scenario for the public and for the Israeli economy, and it is necessary to urgently act to provide a response.”
Speaking on Monday, Labor and Welfare Minister Itzik Shmuli warned that Israel’s welfare services will be incapable of supporting half a million “new poor” Israelis in August.
Citing a slower-than-forecast return to the workplace and growing concerns regarding a second wave of coronavirus, Shmuli said the Finance Ministry’s actions to date – including postponing the start date for benefit eligibility until April 19 – are “not bad but insufficient.”
Figures published by the Israeli Employment Service on Monday evening showed that nearly 354,000 Israelis reported returning to work since restrictions on the economy were first eased on April 19. Since then, almost 125,000 new applicants have submitted requests for unemployment benefits.
At the peak of the crisis, over 1.12 million people – 27.5% of the workforce – had submitted applications for unemployment benefits. Unemployment declined to 23.5% by the end of May, or a total of 960,000 individuals.
National Insurance Institute director-general Meir Spiegler told reporters that extending unemployment eligibility until the end of August for all job seekers would cost the state a total of NIS 3.3 billion ($960m.).