The National Insurance Institute today published its 2007 Poverty Report, which shows a slight decline in the prevalence of poverty across most measures examined. However, as the report refers to last year, it does not take into account the economic crisis that has erupted. The recession into which the economy has slipped and the wave of layoffs over the past couple of months will be reflected in the 2008 Poverty Report.
Israel's poverty rate was 19.9% in 2007, compared with 20% in 2006.
For the first time in years, the 2007 Poverty Report shows a decline in the proportion of children living in poverty, to 34.2% in 2007 from 35.8% in 2006. However, the proportion of elderly living in poverty increased to 22.6% in 2007 from 21.5% in 2006. The National Insurance Institute says that the rise in the quality of life of the elderly was less than the rise in the quality of life of the general population, resulting in an increase in poverty.
However, the proportion of families living in poverty rose to 24.5% in 2007 from 23.8% in 2006. The proportion of large families (four or more children) living in poverty fell to 56.5% in 2007 from 60% in 2006, which the National Insurance Institute attributes to the increase in work-related income.
The prevalence of poverty among working families was unchanged in 2007, and accounted for 60% of all poor families. This fact indicates that joining the Israeli workforce is not enough to emerge from poverty, apparently because of the high proportion of minimum wage-earners and people who work for job agencies.
Published by Globes [online], Israel business news - www.globes-online.com - on November 23, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008