Average wage drops as lower-paid industries continue to recover in pandemic
The average salary of Israeli workers fell 3% in May to 11,300 shekels ($ 3,520) a month, as industries that were lowest paid and hit hard by the pandemic continued to recover.
The Central Bureau of Statistics said on Wednesday that 3.5 million Israelis were employed in May, the most recent month for which data is available.
The hospitality sector saw employment jump 14.4% in May, from the previous month, while the arts, entertainment and recreation industry saw an increase of 5.1% .
Employment in the information and communication professions increased by 1.6%. All other areas saw a change of one percent or less.
At the bottom of the pay scale, the average salary for hotel workers was 5,179 NIS ($ 1,612) per month. The minimum wage in Israel is 5,300 NIS ($ 1,650) per month, or 29 NIS ($ 9) per hour, which probably indicates that many hospitality workers are not employed full time.
Israel’s 338,000 tech workers were the highest paid, with an average salary of 24,893 NIS ($ 7,751) per month.
The education sector employed the most people, with more than 540,000 workers, followed by health and social welfare services, with 501,000.
The total number of jobs marked an increase of 1.1% from April this year, 15% from May 2020 and 35% from April 2020, during Israel’s first nationwide shutdown. , highlighting the recovery of the labor market.
April 2020 saw the largest exodus of workers from the workforce due to the pandemic, with a 28.5% drop in the number of salaried workers from the previous month.
However, the labor market has still not fully recovered. There were 268,000 fewer salaried workers in May than before the pandemic in February 2020, according to the report.
On Monday, the Central Bureau of Statistics said Israel’s unemployment rate remained high last month at 9%, a slight increase from June. The unemployment rate measures the number of people actively seeking employment who cannot find one. The figure could be increased slightly due to the summer school holidays, when the education system tends to lay off workers and some parents prefer to stay at home to save on childcare costs.
A total of 383,700 people were unemployed and on unpaid leave due to COVID-19 during the first half of July, according to the CBI. Before the pandemic, an estimated 150,000 Israelis, or 3.5%, were unemployed.
There are some 130,000 vacancies nationwide, indicating a gap between employers and job seekers, and a need for retraining for some of the unemployed.
Data released on Monday reflects the level of unemployment last month, before the Delta variant goes mainstream, which could further increase the unemployment rate.
The government ended unemployment benefits for most people under the age of 45 who lost their jobs due to the pandemic at the end of June.