Israel releases December unemployment rate
Israel’s Central Bureau of Statistics is expected to release the December 2020 unemployment rate today, which economists project to hold steady at 4.9%.
Israel has maintained an official unemployment rate between 4.3% and 5% throughout the pandemic, although the real unemployment rate encompassing all of society has oscillated from 4% to 34%. Furthermore, there is concern among economists that until every Israeli is vaccinated, workers (and the economy) will be slow to return to full output.
Although Israel is in the midst of a third lockdown, 2021 will likely be a good year for the Israeli economy, and unemployment will fall to historic lows. Boasting the world’s best COVID-19 vaccination program, 32% of Israelis have already been inoculated and 20% have received a second dose, with enough vaccines purchased to cover 140% of Israel’s population. Tel Aviv expects a full return to an open economy by March, which will bolster incumbent Prime Minister Benjamin Netanyahu’s electoral prospects as he seeks re-election. Furthermore, as Israel continues to work on normalising regional relationships, it’s likely that once Israel’s population is fully inoculated that excess vaccine supply will be used to secure economic and security concessions from the Palestinian Authority and other neighbours.
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