The National Insurance Institute reported today that most of the people laid off as a result of the economic crisis are high-tech employees and graduates. December 2008 figures indicate an increase of over 50% in the number of applications for unemployment benefits in Tel Aviv and Jerusalem, compared with an increase of 10% in the south.
The National Insurance Institute said that the greatest impact of the crisis so far was on high-tech companies, whose employees mainly reside in central Israel. As evidence, it cited the sharp rise in applications for unemployment benefit in Rishon LeZion, Ramat Gan, Ashdod, and other large cities.
18,500 people applied for unemployment benefit in December, 23% more than in September. September was used as the baseline, rather than October or November, because of the Jewish holidays that fell in October. The increase in unemployment is the greatest since 2003-05, when the unemployment rate was 9-10.7%.
National Insurance Institute director general Esther Dominici said that the December figures were the start of a trend, and that the national unemployment rate would rise.
The National Insurance Institute favorably noted that the government had agreed to soon ease the eligibility terms for unemployment benefit to make it available after nine months of continuous employment instead of twelve months.
Published by Globes [online], Israel business news - www.globes-online.com - on January 8, 2009
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