Israel’s Jobless Rate Spikes Due to Gaza Onslaught

Date: 20 November 2023 - 21:54

News ID: ۱۲۱۶۷۳

AL-QUDS (Dispatches) – The Zionist regime’s jobless rate surged to near 10% in October, the Central Bureau of Statistics said on Monday, after the outbreak of war on the Gaza Strip led to tens of thousands of displaced citizens who had lived near the Gaza border.
The main unemployment rate held steady at 3.4% last month.
But when taking into account what is expected to be a temporary loss of work, the rate reached 9.6% in October as 428,400 people were jobless versus 163,600 in September, prior to the Oct. 7 conflict.
In the wake of the attack, nearly 400,000 Israelis were called up to reserve duty, and official data show that about 80,000 Israelis were placed on unpaid leave in the last few weeks.
The employment rate in October dipped to 56.5% from 61.1%.
The bureau noted that due to the war it needed to make changes to its labor force survey last month, with nearly no interviews taking place the week after the attack while all subsequent interviews were by phone rather not in person.
It said that it did not survey from communities within 7 km (4.3 miles) from the Gaza Strip and that the response rate of the survey fell to 55.3% from 66.9% in September.
The occupying regime’s low jobless rate had underpinned economic growth, but with so many people furloughed or out of a job, the economy is expected to contract in the fourth quarter and grow a less than expected 2.3% in 2023.
On Sunday, credit rating agency S&P has reported that Zionist regime’s economy will contract 5% in the fourth quarter of this year amid rising geopolitical and security risks due to the conflict with Palestinians.
The rating agency cited lower business activity, falling consumer demand, and a “very uncertain” investment environment.
S&P projects an Israeli fiscal deficit of 5.3% of GDP in 2023 and 2024, compared with the agency’s pre-war estimate of 2.3%.
The Zionist regime has significantly increased expenses to fund the military and to compensate businesses near Gaza, as well as the families of victims and captives held by Hamas. This has led to a record budget deficit, which last month ballooned to $6 billion, a more than sevenfold increase compared to one year ago.