The Central Bank of Israel announced on Thursday that the Israeli economy is incurring a weekly cost of 2.3 billion shekels (around $600 million) due to labor shortages, which were significantly exacerbated during the conflict with Hamas.
The central bank explained that these costs stem from the closure of many schools across the country, the evacuation of around 144,000 workers from areas near the Gaza and Lebanon borders, and the mobilization of reserve soldiers for service.
Israel had called up 360,000 reserve soldiers, the largest mobilization in its history, for its conflict in Gaza, impacting many businesses that relied on these employees.
Data from the Israeli Employment Bureau showed a sharp increase in the number of individuals registered as unemployed in October, coinciding with the outbreak of the conflict in Gaza.
According to the monthly report from the Employment Bureau, published by the Israeli economic newspaper “Globes” on Wednesday, 70,000 Israelis applied for unemployment benefits in October.
This number represents a 460% increase on a monthly basis, rising from 12,500 applications in the previous September.
Among these applicants, there were 42,400 workers on indefinite unpaid leave, constituting 60.3% of new registrants.
The Employment Bureau continuously records the number of job seekers registering with them each month, analyzing the figures to assess the labor market’s strength and its ability to create or lose jobs.
