Center hardest hit by the recession

The Dan region, the greater Tel Aviv area, has suffered the hardest from the economic crisis,, according to an investigation by TheMarker. Tens of thousands of newly unemployed have joined the ranks of the region's jobless, up 25% in February, compared to a 16% rise for the entire country.

Behind the figures stand the beleaguered high-tech sector, which is concentrated in the center of the country. Of course, unemployment rates are still much higher in the periphery far from Tel Aviv, but the rise in unemployment in the customary centers of joblessness has been more moderate than in the center.

Traffic flow shows this to be true: The number of cars entering the Ayalon Highway at the entrance to Tel Aviv from Jerusalem has fallen by 7% between June 2008 and March 2009. Real-estate prices provide further proof. Tel Aviv area property values have fallen the furthest - after many years of huge increases. Prices have actually risen in such cities as Haifa and Hadera, but have at best stayed steady around Tel Aviv and have even fallen.

The economic crisis has, of course, hit almost everyone, with 62% of families saying they have cut back on spending, a survey conducted for TheMarker shows. Where they have cut back the most is on restaurants and entertainment, 35%; clothing, 29%; vacations, 23% and electricity, 22%. But only 8% of those questioned said they have cut back on activities for their children.

Actual spending on items such as food and drinks, toiletries and other consumer items dropped 3.3% nationally in February, compared to last year. The steepest drops were in Jerusalem and Haifa, 9% and 8.5% respectively, despite lower prices. In Tel Aviv the drop was 5%.

Finally, the numbers of people asking for aid from non-profit organizations has grown 30% to 50% around the country in the last six months, with the 50% increase coming in Tel Aviv and Haifa, too, and not just in the less well-off towns.