69% of unemployed Israelis remain out of work

A total of 1.06 million applications for unemployment assistance from the National Insurance Institute were submitted immediately prior to and during the coronavirus outbreak

Allies of the Machane Yehuda market stand empty due to coronavirus (photo credit: MARC ISRAEL SELLEM)
Allies of the Machane Yehuda market stand empty due to coronavirus
(photo credit: MARC ISRAEL SELLEM)
Some 69% of Israelis who registered for unemployment benefits during the coronavirus outbreak still remain out of work, according to new data published by the National Insurance Institute.
 
The figure remains high despite the gradual and almost total reopening of the economy by the government since April 19.
 
A total of 1.06 million applications for unemployment assistance  were submitted to the NII immediately prior to and during the coronavirus outbreak, including 920,359 since the start of March.
 
Since the first restrictions were eased, 116,000 individuals have applied for unemployment benefits, and approximately 325,500 Israelis, or 31% of applicants, have returned to the workforce, leaving nearly 738,000 “active” unemployment-benefit claims at last count.
 
Statistics published by the NII are similar to those reported Monday evening by the Israeli Employment Service, which had received formal notice of approximately 336,000 applicants returning to work since the first restrictions were lifted in mid-April.
 
Responding to the latest figures, Labor and Social Services Minister Itzik Shmuli (Labor) urged the government to extend eligibility for unemployment benefits several additional months, saying the welfare system is “simply unable to absorb hundreds of thousands more individuals in need.”
 
At the cabinet meeting on Sunday, Prime Minister Benjamin Netanyahu said the government would allocate more than NIS 50 million to assist Eilat, which is heavily dependent on foreign tourism and has been hit hardest by the coronavirus outbreak.
The unemployment rate in the southern port city reached 45.6% at the end of April, with 23% of families reporting that both parents were out of work.
 
“We will work to promote and strengthen tourism in the region so that the city can operate with certainty and attract many visitors, even under the cloud of the coronavirus,” Netanyahu said. “It is happening; domestic tourism is gradually replacing – not completely – but partially replacing foreign tourism that was impacted.”