Global| Apr 06 2006Employment Grows in Israel; Wages Rise, but Lose Ground to Inflation
Summary
The number of jobs in Israel increased 5,000 in January from December, seasonally adjusted, to 2.59 million, according to data reported today by Israel's Central Bureau of Statistics (CBS). The gain from a year ago was 79,000 jobs, or [...]
The number of jobs in Israel increased 5,000 in January from December, seasonally adjusted, to 2.59 million, according to data reported today by Israel's Central Bureau of Statistics (CBS). The gain from a year ago was 79,000 jobs, or 2.9%. The CBS also publishes a subset of the jobs data that excludes foreign workers, mostly Palestinians. There were 82,000 of them in January, up from 70,000 a year ago. So the number of jobs covered by Israeli workers was 2.508 million, up just 1,000 from December and 2.7% from January 2005. Both the total number of jobs and those held by Israelis increased by 3.3% for 2005 as a whole.
The average job paid NIS7,232 for the month of January, about US$1,565. For jobs held by Israelis only, the comparable figure was NIS7,614, about US$1,648. In shekels, both total and Israeli wages were up 1.6% from a year ago. Taking account of inflation, "real" wages have fallen 1.3% for all workers and 1.0% for Israeli workers since January 2005.
While real purchasing power per job in Israel has stagnated over the last few years, the number of jobs themselves has advanced nicely. As we point out frequently here, employment in Europe is nearly at a standstill, and in the US, prior to the release tomorrow of March data, recent trends show roughly 1.5% gains in nonfarm payrolls, only about half the pace in Israel. So midst all the Middle East tension, the Israeli economy is presently able to increase jobs and overall growth as well. In industry data through Q4 2005, accommodation, trade and business services were seeing the greatest percentage job gains.
| Jan 2006 | Dec 2005 | Year Ago | 2005 | 2004 | 2003 | |
|---|---|---|---|---|---|---|
| Total Number of Jobs (thous.) | 2,590 | 2,585 | 2,511 | 2,548 | 2,466 | 2,425 |
| Yr/Yr % Change | 2.9 | 3.0 | -- | 3.3 | 2.2 | -0.7 |
| Jobs ex Foreign Workers (thous.) | 2,508 | 2,507 | 2,441 | 2,472 | 2,393 | 2,342 |
| Yr/Yr % Change | 2.7 | 2.9 | -- | 3.3 | 2.8 | -0.1 |
| Average Wages, All Jobs (NIS) | 7,232 | 7,208 | 7,138 | 7,225 | 7,000 | 6,863 |
| Yr/Yr % Change | 1.6 | -1.4 | -- | 3.3 | 2.1 | -2.3 |
| Average Wages, ex Foreign Workers (NIS) | 7,614 | 7,636 | 7,481 | 7,334 | 7,081 | 6,981 |
| Yr/Yr % Change | 1.6 | -1.2 | -- | 3.1 | 2.2 | -2.5 |
Carol Stone, CBE
AuthorMore in Author Profile »Carol Stone, CBE came to Haver Analytics in 2003 following more than 35 years as a financial market economist at major Wall Street financial institutions, most especially Merrill Lynch and Nomura Securities. She has broad experience in analysis and forecasting of flow-of-funds accounts, the federal budget and Federal Reserve operations. At Nomura Securites, among other duties, she developed various indicator forecasting tools and edited a daily global publication produced in London and New York for readers in Tokyo. At Haver Analytics, Carol is a member of the Research Department, aiding database managers with research and documentation efforts, as well as posting commentary on select economic reports. In addition, she conducts Ways-of-the-World, a blog on economic issues for an Episcopal-Church-affiliated website, The Geranium Farm. During her career, Carol served as an officer of the Money Marketeers and the Downtown Economists Club. She has a PhD from NYU's Stern School of Business. She lives in Brooklyn, New York, and has a weekend home on Long Island.
