• Published 02:02 11.11.09
  • Latest update 08:38 11.11.09

Finance Min.: Arabs, Haredim to blame for their poor economic state

High unemployment rate among these two groups reduces the state's GDP, says Steinitz.

By Haim Bior Tags: Israel news

The Arab and ultra-Orthodox communities themselves are partly responsible for the high unemployment among their members, Finance Minister Yuval Steinitz told a conference on employment discrimination on Tuesday.

Steinitz said his ministry is currently discussing ways to encourage both communities to increase their work force participation rate, which is currently significantly lower than the Israeli norm. Partly as a result, these communities are also two of Israel's poorest.

At the conference, which took place at the Ono Academic College, Steinitz argued that the low work force participation rate of Haredi (ultra-Orthodox) men and Arab women is a key problem that "requires a solution, because the very low participation rate of these two groups reduces the state's GDP," or gross domestic product.

This low labor force participation rate cannot be blamed solely on discrimination, he added; it also stems from "cultural barriers" - the Haredi belief that men should study Torah rather than work, and "the view that an Arab woman should stay within her own community."

In addition, he said, there is widespread nonpayment of municipal taxes in Arab and Haredi towns, and as a result, municipal services are being slashed - which ultimately harms the residents themselves.

Histadrut labor federation chairman Ofer Eini accused the government of neglecting outlying areas of the country, which contain many Arab and Haredi towns, as well as high concentrations of Ethiopian immigrants. "Unemployment is high in the periphery because traditional industry, with no high-tech, is virtually the only thing there," he said. "Nonpayment of wages by local authorities in the periphery is a symptom of this."

Eini urged the government to finance clerkships in law firms for 1,000 newly certified Haredi, Arab and Ethiopian lawyers each year, to improve their chances of finding a job.

Attorney Nidal Uthman of the Mossawa Center, an Arab advocacy organization, claimed that the real problem was anti-Arab discrimination in every sector of society.

Many companies, he charged, are reluctant to employ Arabs, fearing it will damage their brand. The government itself, he added, "decided that 10 percent of those employed in its offices would be Arabs by the end of 2008, but the rate by that time had reached only 6 percent, so the deadline for reaching 10 percent was postponed to 2012."

And Arabs, he noted, constitute 20 percent of the population.

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  • 22. 0 0
    the difference between haredi and arab unemployment
    • assaf adiv
    • 15.11.09
    • 08:28

    what Minister Steintiz does not want to say is the fact that unemployment among Haredi community is a result of huge goverment subsidies that encouraged people not to work. Arabs on the other hand suffer from discrimination on the job confiscation of their land - in both cases the government should blame itself - but to put the problem of the two groups together the way Mr Steinitz did is pure demagogy that serves to cover the continuation of the same policy

  • 21. 0 0
    CLEAN THE STREETS !
    • Indian
    • 15.11.09
    • 04:15

    As an Indian who has visited Israel, and loves Israel, I inderstand that the "Haredim" Jews find it difficult to serve in the Israeli Army as it exists now. Still they can do their bit for the country by keeping Jerusalem and the holy land clean of litter, and picking garbage at least.

  • 20. 0 0
    Arabs had lots of work before intifada
    • sweis Melbourne
    • 15.11.09
    • 03:25

    now who can blame Israelis if they dont trust them?

  • 19. 0 0
    Even G-D works six days a week
    • Bryan
    • 15.11.09
    • 03:03

    Even G-D works six days a week. Why makes the Haredim better? And, how can they really sanctify Shabbat if they don't work on the other six days?

  • 18. 0 0
    how life works (or can work)
    • howard
    • 12.11.09
    • 14:39

    i was born on a poor farm in the middle of nowhere. wanted to fly. worked my butt off, got a pilots license, trained pilots on WW2, found a job at PanAm. retired successfully, raised three kids, who raise theirs well. i am 87. dont tell me the governement needs to bail out anyone. i did it myself and am proud.

  • 17. 0 0
    government is to blame? we are the government
    • g. lee
    • 12.11.09
    • 14:33

    government is a representation of us. if its to blame, we are to blame. we vote, we complain. also, do consider the concept, apparently alient to you, or personal responsiblitiy. to blame are those who support parasitism, big governent, payments for kids, payment for this and that. absurd

  • 16. 0 0
    Large efforts to reach common cultural basis needed
    • H.H.M
    • 11.11.09
    • 18:23

    Large efforts to reach common cultural basis needed The root of the whole problem is the so various historic / culture background of the enormous mixture of Israel?s population with its internal / racial / religious / developmental backgrounds. Without maximal governmental and public educational efforts of upbringing to present times these so different parts of the population to an acceptable common level very little beyond the welfare level will be effective.- Any propose way to change this situation must be completely apolitical in every way, which under present circumstances seems to be a ??Hercules?? effort. Intellectual Finance Minister Yuval Steinitz should be aware of the situation and maybe able to propose a acceptable way.

  • 15. 0 0
    Is low labor force participation necessarily bad?
    • Joel M. Guttman
    • 11.11.09
    • 17:54

    Yuval Steinitz is quoted as stating, "the low work force participation rate of Haredi (ultra-Orthodox) men and Arab women is a key problem that 'requires a solution, because the very low participation rate of these two groups reduces the state's GDP.'" This statement contradicts basic economic common sense which is taught in introductory economics courses. If a person chooses not to work more than x hours, this is because it is not optimal for him to do so. True, if he were to work longer hours (say, if he were compelled to do so), GDP would be higher, but economic welfare would be lower, because his original choice was optimal, given his preferences. Thus, if Haredi men choose not to work, this is presumably a rational choice in terms of their own preferences, and it is not a "key problem that requires a solution". In short, higher GDP does not necessarily mean greater economic welfare. (The writer is an associate professor of economics at Bar-Ilan University.)

  • 14. 0 0
    If Israel were strictly a Haredi nation
    • Harry
    • 11.11.09
    • 16:33

    What kind of economy would it have? Would it even survive? I kind of wonder...... Didn't the ancients work?

  • 13. 0 0
    The first partially evenhanded article in
    • TOMY
    • 11.11.09
    • 16:25

    Haaretz and Israel is not blamed exclusively . There are opportunities in Israel , but cultural barriers is the hardest thing to brake down . Uneducated masses have less chances here also , in America or anywhere else .

  • 12. 0 0
    Illegal for Heredim to work? Say what....
    • Bemet
    • 11.11.09
    • 14:45

    It's illegal for Heredim to work? Really. How is that... And training.... are you saying they are not smart enough to learn how to pick vegetables properly? Compared to other real JOBS this is pretty fast and easy training... for sure they don't need 2 years of math, science or anything that would take more than a few days. Stop the excuses, stop all the welfare, stop all the subsidies, watch them change their attitudes fast.

  • 11. 0 0
    to Nikki
    • Susan
    • 11.11.09
    • 14:08

    I agree with you that Haredim should learn English, math and other secular subjects. But I can't figure out how to force people to learn something they vehemently don't want. You can set up English and math classes for them, but they will just blow it off.

  • 10. 0 0
    Helping the Haredim help themselves
    • Nikki
    • 11.11.09
    • 11:26

    The problem is two-fold as is the solution: 1 -Haredim need to be properly trained for the workforce. This means teaching comprehensive general education (math, science, English) in primary and secondary schools 2 - reduction of government subsidies that encourage unemployment and very high birth rates. The discrimination against Haredim in the workplace partially stems from the fact that Israelis have never seen Haredim work and what little interaction they may have had was likely hostile. A long history of undereducation and non-employment must be overcome.

  • 9. 0 0
    One Solution
    • Jon
    • 11.11.09
    • 10:12

    The simplest solution is to stop making it possible for an able-bodied person to live without work in this country. Then you'll see them all working.

  • 8. 0 0
    The blame game
    • Shaul
    • 11.11.09
    • 10:07

    The govt. is to blame. Their is no budget for retraining, lishkat avodah works on corruption and Israeli government postions (municipality, electricity etc) are provided to family interns. his is well known, so don't paly the blame game

  • 7. 0 0
    News flash to the finance ministry
    • Puffy
    • 11.11.09
    • 09:58

    Arabs work as much as the Jews. They just don't report their income, so it appears like they are unemployed.

  • 6. 0 0
    Haredim aren't ALLOWED to work
    • Yaakov Ish Tam
    • 11.11.09
    • 09:33

    Maybe more Haredim would join the workforce if they were LEGALLY permitted to do so. You can't make it all but illegal for an entire segment of the population to work and then complain when many of them are unemployed. It's time to face reality, Haredim will NOT EVER serve in the army so we can continue the current system of indefinite deferrals and unending Yeshiva "enrollment" where everyone loses. Or we can just change the law and ALLOW them to legally work. I think all the haters will be surprised just how many WILL.....

  • 5. 0 0
    Bernet, picking vegetable requires little training?!
    • Zev Davis
    • 11.11.09
    • 09:32

    Bernet, did you ever send someone to the greengrocer who didn't know the difference between a tomato that wasn't altogether ripe, or an avocado that was too hard, or . . . Picking fruits and vegetables on the field requires some special skills. You have to know what is ready to market, what needs to stay on the tree, or the vine, to remove the fruit without bruising it, and, above all work at a pace that justifies your salary. And, yes, Virginia, Haredim who live on moshavim, who grow some of the vegetables and fruits you eat, do pick the results of their labor. That many Haredim are city dwellers means they are, like you, and may not have the skills to get the agricultural goods off the ground as those people who do have those skills.

  • 4. 0 0
    we also read that jewish employers are reluctant
    • C2
    • 11.11.09
    • 09:19

    to hire Arabs so how you going to fix this discrimination????????????!

  • 3. 0 0
    Teach the Heredim to pick vegetables.......
    • Bemet
    • 11.11.09
    • 08:43

    That will stop $ha$ from complaining about non-Jewish foreign workers while using them to line their own pockets. Very little training required!!! Wonderful for the ecomomy if you can limit their smoke breaks.

  • 2. 0 0
    Bradley...
    • Yosemite
    • 11.11.09
    • 07:21

    These economists totally ignored us.

  • 1. 0 0
    Haredim and Work
    • Barry Zornberg
    • 11.11.09
    • 06:06

    The problem with the Haredim is that they use the Torah as an excuse for laziness. They have gotten used to living on other people's work and envision a life in which the messiah arrives and the rest of us tithe 10 percent to support them while they pray and slaughter animals for sacrifice all day. Well guys, good luck! When the messiah does come, the lazy will be treated accordingly! Get a Job! Get a life! Barry Zornberg