Employment rate of Israel-Arab population decreases during war, IDI report finds

The report noted that, as of October 2023, nearly a third of Arab men who worked before the war were no longer employed. 

A laborer works on an apartment building under construction in the Har Homa quarter in Jerusalem (photo credit: REUTERS)
A laborer works on an apartment building under construction in the Har Homa quarter in Jerusalem
(photo credit: REUTERS)

Israel's Arab-Israeli population employment rate has been significantly influenced by the Israel-Hamas War, according to a Tuesday report by the Israel Democracy Institute. 

The report examined three different periods, the beginning of the war and later months, as well as data from July 2024, the most recent data available. 

The report found that at the start of the war, the employment rate for Arab men fell to 53.5% and 35.6% for women after rising to 77.7 and 45%, respectively, in early 2023. 

The report noted that, as of October 2023, nearly a third of Arab men who worked before the war were no longer employed. 

Women's employment rates surged again solely in February 2024, with data showing rates at 45%.

 The construction site on stormy days. (credit: PR)
The construction site on stormy days. (credit: PR)
 

While men's rates surged, they did not return to their levels before the war, remaining at 72% since the beginning of 2024. 

As of July 2024, some 5.7% of Arab men aged 25-64 who had worked before the war had yet to return to work. 

The report noted that at the start of the war, the decrease in employment within the population was due to concerns about working with Jews after the beginning of the war. 

Decline in various sectors 

This was ascertained by examining the data from Jewish localities in which Arab works showed a slightly more significant decline. 


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The hospitality and food sector suffered the most, dropping to some 34%, while the construction sector saw a drop to 65.2% from an initial 90.8%.