1. Dr. Roby Nathanson Dr. Roby Nathanson November 28th, 2011 The development of employment policies that benefit the labor market, integration of the young in Israel.

2. "Poverty and income inequality is higher in Israel than in most OECD countries. These poor outcomes are the result of Israel's socio-economic dichotomy. On the one hand there is the general Jewish population where the majority of men and women are at work, living alongside minorities where either the majority of women (Arabs) or men (ultra-Orthodox) are not in paid employment.“ OECD 2010, Reviews of Labor Market and Social Policies

3. Economic and social trends Composition of the population by group 2008 compared to expected Composition in 2020 Ages 25-64 20202008 19%16%Arab Minority 11%6% Ultra- Orthodox 70%78%Other Source : The Eckstein employment committee, 2011 Other Ultra- Orthodox Arab Minority TotalYear 11.4059.056.924.72010 -0.6-0.73.21.12010 Compared to 2007 Source: Bank of Israel, 2010 Poverty rates

4. 4 The labor market Participation in the work force by population group Ages 25-64

5. Employed Arab population in the work force by industry and gender Total PopulationArab MaleArab Female 1.26%2%1% Agriculture 10.97%16%7% Manufacturing 4.15%27%1% Construction 10.23%18%8% Wholesale and retail trade 3.55%4% Accommodation services and restaurants 5.04%9%2% Transport, storage and communications 11.30%6% Business activities 26.76%3%4% Public administration 5.34%3%6% Community services 8.00%4%13% Health services 9.68%6%47% Education services 3.73%2%1% Other The Arab minority in the labor market

6. Number of Years of schooling by population group, age group 35-44, percentage, (2010) The labor market

7. Type of last school attended, age group 25-34 ThousandsPercentageType of last school attended 8.60.79%Did not attend school 57.65.29%Primary & Inter-Mediate School 129.511.90%Vocational Secondary School 249.522.92%General Secondary School 34.13.13%Rabbinical studies 68.06.25%Post secondary Vocational School 55.45.08%Post secondary School 33.73.10%Teaching Degree 435.540.00%Academic 16.81.55%Other 1,088.7 Total The labor market The majority of workers have not acquired an academic education

8. 9.99Non Jewish women 20.02Non Jewish men 16.18 Jewish women 18.38 Jewish men 64.57Total The number of Arab men expected to join the work force in the coming years is expected to surpass the number of Jewish men. Annual average Joining rate Joining the work force, 2008-2015 by age and religion. Expected developments in the labor market

9. A relatively small number of young people are expected to join the labor market in the coming years. In most age groups the majority of workers joining the work force will be men. Joining the work force, 2008-2015 by age and sex. Expected developments in the labor market

10. The majority of the young population is not employed nor enrolled in academic institutions. Vocational programs can focus on this population. Vocational programs can target the age group of 21-24. Many in this age group are not employed nor at school. In addition, vocational training must focus on the Arab minority which is expected to comprise a large share of those joining the work force. In addition to training in the fields of industry and commerce, vocational training should also include programs in the fields of business services and personnel services, fields which are growing rapidly. Summary