Despite the worsening economic slowdown, the labor market is still strong. In February 2014, the unemployment rate fell to 5.7% in original figures and to 5.8% in seasonally adjusted figures, the Central Bureau of Statistics reported today. In the three preceding months, it was possible to see a slow rise in unemployment, but the February data broke the trend.
More impressive are the developments in core unemployment; i.e. the unemployment rate in the 25-64 age bracket, a more accurate figure that is less affected by developments among IDF soldiers. According to the data, the core unemployment rate fell below 5%, to 4.9% in February. This is a historic low. The drop in unemployment occurred simultaneously with a rise in participation in the labor force, which, for the first time, reached almost 80% among people aged 25-64.
A rise in participation in the labor force, i.e. the entry of working-age people who were not previously part of the labor force, is usually accompanied by a rise in the unemployment rate, because not everyone who enter or reenters the labor market finds work.
Published by Globes [online], Israel business news - www.globes-online.com - on March 24, 2014
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