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Employment Policy Convention, 1964 (No. 122) - Israel (RATIFICATION: 1970)

The Committee takes note of the supplementary information provided by the Government in light of the decision adopted by the Governing Body at its 338th session (June 2020). The Committee examines the application of the Convention on the basis of the supplementary information received from the Government this year (see section concerning the COVID-19 pandemic), as well as on the basis of the information at its disposal in 2019.

COVID-19 pandemic. Socioeconomic impacts. Response and recovery measures. The Committee notes the serious social and economic impact of the COVID-19 pandemic at the national and local levels. The Committee notes from the ILO monitor on country policy responses, the set of measures implemented by the Government in the framework of several stimulus packages adopted to mitigate the effects of the COVID-19 pandemic. The measures include providing full unemployment benefits for all employees who are laid off or on unpaid leave, increasing unemployment allowances, reducing the required period of employment for eligibility for unemployment benefits from 12 to six months, and providing designated assistance stipends for self-employed workers and business owners. The Committee recalls in this regard, the comprehensive guidance provided by international labour standards and draws the Government’s attention to Decent Work for Peace and Resilience Recommendation, 2017 (No. 205), which provides guidelines for developing and implementing effective, consensus-based and inclusive responses to the profound socio-economic impacts of the pandemic. The Committee invites the Government to provide updated information in its next report on the impact of the global COVID-19 pandemic and the measures taken to mitigate it on the implementation of measures and programmes aimed at ensuring the objectives of the Convention, and in particular, the issues addressed in the paragraphs below.

Articles 1 to 3 of the Convention. Employment trends and active labour market measures. The Committee notes that, according to the Organisation for Economic Co-operation and Development (OECD) Economic Survey on Israel of March 2018, before the onset of the COVID-19 pandemic the Israeli labour market had improved markedly over the last decade, with the employment rate reaching historically high levels. According to the ILOSTAT database, in 2018 the labour force participation rate was 68.3 per cent among men and 59.8 per cent among women, and the employment-to-population rate was 65.5 per cent among men and 57.4 per cent among women. The unemployment rate was 4 per cent for both men and women. The Committee further notes from the OECD Economic Survey that the labour market is still characterised by severe duality. On the one hand, there are productive advanced industries, including high-tech sectors, which attract mostly high-skilled workers with high wage. On the other, low-productivity, often non-tradable, sectors that employ many Israeli-Arabs and Haredim, who are trapped in low quality, low-wage jobs. Israel’s share of low-paid workers is one of the OECD’s highest. With regard to the active labour market measures, the Government indicates that the pilot program “Employment Circles”, which is targeted at new applicants for income support, has been gradually extended to the whole country. The Government refers also to the implementation of the “Remote Work Grant” pilot programme, which is targeted at jobseekers living in the peripheral areas. In the framework of the programme, jobseekers receive a grant of ILS 625 per month for a period of 5 months if they find and maintain a job located outside the limits of their locality of residence. The Committee notes the detailed information provided by the Government in its supplementary report concerning the impact of both programmes and the number of participants between 2017 and 2018. The Committee also notes the adoption of the Three-Year Work Plan 2018-20 of the JDC-Tevet (hereinafter JDC-Tevet Work Plan), an employment agency that in partnership with the Israeli government, businesses and NGOs develops and tests innovative and comprehensive programs that address the growing complexities of the world of work and the needs of those excluded from the labour market (such as Arab-Israelis, ultra-Orthodox Jews, persons with disabilities and Ethiopian immigrants). The Committee notes from the JDC-Tevet website, that once the JDC-Tevet programs are successfully piloted, the Government generally takes them over and applies them on a broader scale. The Committee requests the Government to provide up-to-date, detailed information on the impact of active labour market measures implemented to promote full, productive and freely chosen employment. In particular, the Committee requests the Government to provide information on how these measures have helped the beneficiaries to obtain full, productive and sustainable employment. It also requests the Government to provide updated statistical information on the development of the labour market, especially on the rates of the economically active population, employment and unemployment, disaggregated by sex and age. The Committee further requests the Government to provide detailed information on the manner in which the social partners participate in the design, implementation and evaluation of the employment policies.

Arab, Druze and Circassian population. The Committee notes that, according to the Central Bureau of Statistics (CBS), the Arab minority represented 20.9 per cent of the population in 2018. The Committee notes the adoption of the Resolution No. 922, known as the “Economic Development Plan for the Arab Sector” on 30 December 2015, which is aimed at closing gaps for Israel’s Arab society in different fields, including employment and education. This five-year plan was developed in collaboration with Arab leadership, and municipal leadership in particular. The Plan sets the employment targets for 2020 at 78 per cent for Arab men, and 41 per cent for Arab women. It envisages, among other measures, supporting 21 Riyan employment centers in Arab localities (including in the Druze and Bedouin communities) budgeted at NIS 50 million per year for a five years period; providing subsidies for employers who hire more than five new Arab employees or take Arab interns; and providing training, technical assistance and business consulting for small and medium size businesses. Measures to promote the participation of Arab women in the labour market are also envisaged under the Plan, including the granting of subsidies for day care and the establishment of new childcare facilities in Arab localities. The Committee further notes that the JDC-Tevet Work Plan focuses on increasing skill training programs and career advancement programs in Riyan employment centers, launching activities that create job opportunities within Arab towns, and introducing career development programmes for Arab youth. The Committee requests the Government to provide updated detailed information on the measures taken to promote full, productive and freely chosen employment among the Arab, Druze and Circassian population. It also requests the Government to provide statistical information, disaggregated by sex, on the impact of such measures.

Ultra-Orthodox (Haredim) population. The Committee notes, from the JDC-Tevet Work Plan, that the ultra-Orthodox community is one of the country’s poorest community, with 52.4 per cent below the poverty line in 2015. Men’s participation in the workforce in the beginning of 2017 was 50.8 per cent. According to the cited report, the main reasons contributing to ultra-Orthodox poverty include low workforce participation of men as well as low pay due to insufficient formal and academic education and part-time work. The Committee notes that the Three-Year Work Plan 2018-20 of the JDC-Tevet envisages the integration of newly developed TEVET programs and tools into ultra-Orthodox employment centers to strengthen their professional abilities. In this regard, JDC-TEVET is preparing to hand over to the Government the implementation of the Career Alternatives Program “Chen” aimed at increasing the number of ultra-Orthodox women aged 18 to 21 in gainful, quality employment by creating employment-targeted study tracks at the ultra-Orthodox seminars. In addition, the Committee notes the implementation of the one-year training programme “Movilot”, which provides individual guidance and support as well as group training and mentoring to Haredi women. The Committee requests the Government to provide information on the measures taken to promote full, productive and freely chosen employment among Ultra-Orthodox (Haredim) population. It further requests the Government to provide statistical information, disaggregated by sex, on the impact of such measures.

Workers with disabilities. The Committee notes that, from the JDC-Tevet Work Plan, under newly enacted laws and regulations, the statutory employment quota of persons with disabilities for enterprises with 100 or more employees is established at 5 per cent in the public sector and 3 per cent in the private sector. However, according to the JDC-Tevet Work Plan, only 50 per cent of persons of working age with disabilities are employed, compared with 73 per cent among those without disabilities. The report adds that only 20 per cent of recipients of disability benefits are employed, mostly in jobs not commensurate with their skills or education. Against this backdrop, the Committee notes that JDC-Tevet is implementing several pilot programmes to promote the access of persons with disabilities to the labour market. In particular, the programmes “Ram Up” and “Focus” are aimed at integrating persons with disabilities in the workforce and supporting people with learning disabilities who are challenged in the work environment, respectively. The JDC-Tevet is also implementing the “Incorporate Israel” program with the objective of promoting the access of persons with disabilities to the fields of finance, insurance and hi-tech in Tel Aviv. The Committee requests the Government to provide updated detailed information on the measures taken or envisaged to promote employment opportunities of persons with disabilities in the open labour market and on their impact. It also requests the Government to indicate whether the implementation of such pilot programmes has been extended.

Coordination of education and technical and occupational training measures with the employment policy. The Committee notes that, according to the OECD Economic Survey, large wage gaps between Israeli-Arabs and Haredim and the rest of the population can be explained by differences in skills. These differences limit the effectiveness of their employment gains for lowering poverty (Israeli-Arabs and Haredim earn on average 70 per cent and almost 90 per cent of the median hourly wage, respectively) and perpetuate the strong disparities in formal education between these groups and the rest of the population. The OECD Economic Survey highlights that the large dispersion in skills and student’s outcomes is related to the segregated education system, which comprises four streams: one for Arabic speakers and three for the Hebrew-speaking communities, including Haredi, state-religious and state schools. Moreover, the cited Survey states that another problem that exacerbates skills differences is the low quality of initial vocational education and training (VET) system. In particular, the OECD Economic Survey points out that VET is underdeveloped, and many tertiary educated graduates are employed in jobs not matching their field of studies, which harms their wages and employment prospects. With respect to Israel’s tertiary education, the OECD Economic Survey highlights that it faces two serious challenges: making it more accessible for Haredim and Israeli-Arabs; and improving the matching of students’ skills to changing labour market needs. The Committee notes that the JDC-TEVET Work Plan 2018-20 includes among its objectives developing skills for a changing labour market through innovative vocational training for new occupations and new forms of work, as well as increasing and strengthening partnerships with employers. In this context, the JDC-TEVET is implementing the “Starter” pilot vocational training model in several industries. This VET model combines theoretical studies and on-the-job training with employers. The Committee requests the Government to provide detailed updated information on the measures taken or contemplated, in cooperation with the social partners and the representatives of different sectors, for coordinating education and training policies with possible employment opportunities. It also requests the Government to provide statistical information, disaggregated by sex and age, on the impact of the aforementioned measures on job creation, especially with regard to Israeli-Arabs and Haredim population.