Wages in Israel Still Below Their 2001 Peak, Treasury Says

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A stack of shekel notes.Credit: Moti Kimche

The average wage in Israel was higher last year than it was in 2007 but lower than in 2001 at the peak of the global high-tech bubble, the Finance Ministry said in a weekly survey on Sunday.

Wages only caught up with 2007 levels last year, after rising 1.5% after inflation from 2013 to an average of 9,397 shekels ($2,326) a month, Yoel Naveh, the treasury’s chief economist said.

In the private sector, the average wage was 9,225 shekels, versus 13,121 shekels in the public sector. In the non-profit sector, it was just 5,465 shekels a month and for household work 4,274 shekels, the reason being because there are so many part-time workers, the treasury said..

The highest salaries are paid by government-owned companies, in the financial services sector and in the civil service, where 2014 average salaries were 17,188, 16,992 and 9,996 shekels a month, respectively.

While employment has been growing, the increase in the number of jobs slowed in 2014, the ministry said.

In the private sector, employment grew 2.2%, down sharply from an average of 3.8% in 2010-2012. In the public sector, it grew 3% last year, down from a 3.9% increase in 2010-2012.

The civil service accounted for 18.5% of all jobs in Israel last year, while government companies accounted for another 4.6%. Financial services employed 3.2% of the labor force and non-profits 6.4%. The public sector has been growing faster than the private sector, whose share of all employment declined to 67.3% from 69% at the start of the decade, the treasury said.

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