Israels long-term prosperity depends on getting more ultra-Orthodox Jews and Israeli Arabs to join the workforce, the International Monetary Fund said in a report Monday. Wrapping up a two-week mission to Israel, the IMF report also said the countrys economy was strong and had weathered the global economic slowdown well. It cited growth of almost 5 percent in 2010 and 2011 and an unemployment rate of 5.5% an all-time low while inflation has fallen. The report warned, however, that the low work participation of Israeli minority populations poses a long-term threat to the nations economic health. In particular, it said Arab-Israeli women have an employment rate of 20% and ultra-Orthodox men of 40%. The two groups are among the poorest and fastest-growing in Israel. The IMF study suggested that the combined ultra-Orthodox and Israeli Arab populations could double over the next three decades, from a combined quarter of Israels population to half. It said that if the two sectors reached the employment, wage and productivity rates of the rest of the country, Israels output would rise by 15%. The report underlined a growing rift in Israel between the secular majority and a fervently devout minority whose numbers are skyrocketing and which lives a lifestyle distinct from the rest of the country. In ultra-Orthodox society, men focus heavily on religious study and often do not work, relying instead on welfare. At current demographic trends with the ultra-Orthodox typically having an average of six children per couple the religious minority could become increasingly dominant. Finance Minister Yuval Steinitz praised the mission and its feedback on the Israeli economy, saying we are acting and will continue to act toward the integration of Arabs and the ultra-Orthodox in the labor market, he said. We are creating opportunities for ... education and vocational training and call upon those sectors of the population to participate in the labor market for their own good and the good of the whole economy. Arab women have a low work force participation because of a combination of lack of education, distance from economic hubs and traditional social constraints. The low work participation among the ultra-Orthodox, along with their refusal to perform compulsory military service, has fueled widespread resentment among secular Israelis. In some cities, ultra-Orthodox extremists have recently tried to impose their conservative mores on mainstream society, vandalizing billboards with images of women, for instance, further adding to the resentment.
IMF urges ultra-Orthodox men and Arab women to go to work
International Monetary Fund report lauds Israels economy as strong, cites record low unemployment rate of 5.5% • Report warns, however, that low work participation of Israeli minority groups poses long-term threat to Israels economic health.
Load more...