The share of new unemployment benefit claimants who were made redundant in April was almost twice the redundancy rate the previous month, according to data published by the Israeli Employment Service on Sunday, sparking fears regarding the return of many furloughed employees to their former workplace.
While the majority of new applicants remained employees placed on unpaid leave due to measures to contain the coronavirus outbreak, the share of redundant workers increased from 6.3% in March to 11.8% in April. The Employment Service predicts that "many jobseekers" on unpaid leave are likely to be made redundant.
A total of 177,400 new applicants submitted requests for unemployment benefits in April, compared to over 850,000 in March. The quantity of new applications in April still remains about seven times greater than monthly applications prior to the crisis in January and February, which stood at 23,800 and 25,800 respectively.
At the end of April, the Employment Service recorded more than 1.15 million jobseekers, representing 27.6% of the national workforce. In February, the unemployment rate stood at only 3.9%, or 162,500 workers. The unemployment rate is expected to remain in double figures for "several more months," the Employment Service said.
Following the end of the Passover holiday, and the gradual lifting of economic restrictions, a modest flow of employees returning to work has been recorded. According to data published on Sunday, over 53,400 citizens have reported returning to work since April 19.
"From the end of April until today, we are seeing a slow return to the workplace," said Employment Service director-general Rami Garor.
"We estimate, given the return of educational frameworks in the coming days, that we will see greater movement, especially among those placed on unpaid leave. This is the time to encourage employers from a wide range of sectors to bring back their employees from unpaid leave on a wide scale."
Garor also warned that Israel remains at the height of the economic crisis, and additional waves of economic turmoil are expected to "include an increase in the unemployment rate."
The Employment Service data also showed that younger workers continue to be hit hardest by the coronavirus outbreak. Workers aged under 34 represented 47.8% of all new applicants in April. The past month also witnessed an increase in the share of applicants aged over 55, rising from 14.8% in March to 16.9% in April.
Except for the tourism-dependent resort city of Eilat, the towns and cities with employees most affected by the outbreak are those characterized by high concentrations of haredi (ultra-Orthodox) and Arab populations: Beitar, Modi'in Illit, Bnei Brak, Beit Shemesh, Nazareth and Umm el-Fahm.
A decline in the share of applications in April was recorded from employees working in education (9.2%, compared to 13.7% in March), sales (7.7%, compared to 9.3%) and the dining sector (5.8%, compared to 6.3%). The decline is mostly attributed to the expiry of eligibility for unemployment benefits.
Meanwhile, increases were noted among workers in industrial, maintenance and administration professions, suggesting that there has been a delayed impact on the sectors. For example, the industrial manufacturing workforce has relied on a build-up of orders made prior to the coronavirus outbreak.