Employment Policy Convention, 1964 (No. 122) - Israel (Ratification: 1970)

Direct Request (CEACR) - adopted 2020, published 109th ILC session (2021)

The Committee takes note of the supplementary information provided by the Government in light of the decision adopted by the Governing Body at its 338th session (June 2020). The Committee examines the application of the Convention on the basis of the supplementary information received from the Government this year (see section concerning the COVID-19 pandemic), as well as on the basis of the information at its disposal in 2019.

COVID-19 pandemic. Socioeconomic impacts. Response and recovery measures. The Committee notes the serious social and economic impact of the COVID-19 pandemic at the national and local levels. The Committee notes from the ILO monitor on country policy responses, the set of measures implemented by the Government in the framework of several stimulus packages adopted to mitigate the effects of the COVID-19 pandemic. The measures include providing full unemployment benefits for all employees who are laid off or on unpaid leave, increasing unemployment allowances, reducing the required period of employment for eligibility for unemployment benefits from 12 to six months, and providing designated assistance stipends for self-employed workers and business owners. The Committee recalls in this regard, the comprehensive guidance provided by international labour standards and draws the Government’s attention to Decent Work for Peace and Resilience Recommendation, 2017 (No. 205), which provides guidelines for developing and implementing effective, consensus-based and inclusive responses to the profound socio-economic impacts of the pandemic. The Committee invites the Government to provide updated information in its next report on the impact of the global COVID-19 pandemic and the measures taken to mitigate it on the implementation of measures and programmes aimed at ensuring the objectives of the Convention, and in particular, the issues addressed in the paragraphs below.

Articles 1 to 3 of the Convention. Employment trends and active labour market measures. The Committee notes that, according to the Organisation for Economic Co-operation and Development (OECD) Economic Survey on Israel of March 2018, before the onset of the COVID-19 pandemic the Israeli labour market had improved markedly over the last decade, with the employment rate reaching historically high levels. According to the ILOSTAT database, in 2018 the labour force participation rate was 68.3 per cent among men and 59.8 per cent among women, and the employment-to-population rate was 65.5 per cent among men and 57.4 per cent among women. The unemployment rate was 4 per cent for both men and women. The Committee further notes from the OECD Economic Survey that the labour market is still characterised by severe duality. On the one hand, there are productive advanced industries, including high-tech sectors, which attract mostly high-skilled workers with high wage. On the other, low-productivity, often non-tradable, sectors that employ many Israeli-Arabs and Haredim, who are trapped in low quality, low-wage jobs. Israel’s share of low-paid workers is one of the OECD’s highest. With regard to the active labour market measures, the Government indicates that the pilot program “Employment Circles”, which is targeted at new applicants for income support, has been gradually extended to the whole country. The Government refers also to the implementation of the “Remote Work Grant” pilot programme, which is targeted at jobseekers living in the peripheral areas. In the framework of the programme, jobseekers receive a grant of ILS 625 per month for a period of 5 months if they find and maintain a job located outside the limits of their locality of residence. The Committee notes the detailed information provided by the Government in its supplementary report concerning the impact of both programmes and the number of participants between 2017 and 2018. The Committee also notes the adoption of the Three-Year Work Plan 2018-20 of the JDC-Tevet (hereinafter JDC-Tevet Work Plan), an employment agency that in partnership with the Israeli government, businesses and NGOs develops and tests innovative and comprehensive programs that address the growing complexities of the world of work and the needs of those excluded from the labour market (such as Arab-Israelis, ultra-Orthodox Jews, persons with disabilities and Ethiopian immigrants). The Committee notes from the JDC-Tevet website, that once the JDC-Tevet programs are successfully piloted, the Government generally takes them over and applies them on a broader scale. The Committee requests the Government to provide up-to-date, detailed information on the impact of active labour market measures implemented to promote full, productive and freely chosen employment. In particular, the Committee requests the Government to provide information on how these measures have helped the beneficiaries to obtain full, productive and sustainable employment. It also requests the Government to provide updated statistical information on the development of the labour market, especially on the rates of the economically active population, employment and unemployment, disaggregated by sex and age. The Committee further requests the Government to provide detailed information on the manner in which the social partners participate in the design, implementation and evaluation of the employment policies.

Arab, Druze and Circassian population. The Committee notes that, according to the Central Bureau of Statistics (CBS), the Arab minority represented 20.9 per cent of the population in 2018. The Committee notes the adoption of the Resolution No. 922, known as the “Economic Development Plan for the Arab Sector” on 30 December 2015, which is aimed at closing gaps for Israel’s Arab society in different fields, including employment and education. This five-year plan was developed in collaboration with Arab leadership, and municipal leadership in particular. The Plan sets the employment targets for 2020 at 78 per cent for Arab men, and 41 per cent for Arab women. It envisages, among other measures, supporting 21 Riyan employment centers in Arab localities (including in the Druze and Bedouin communities) budgeted at NIS 50 million per year for a five years period; providing subsidies for employers who hire more than five new Arab employees or take Arab interns; and providing training, technical assistance and business consulting for small and medium size businesses. Measures to promote the participation of Arab women in the labour market are also envisaged under the Plan, including the granting of subsidies for day care and the establishment of new childcare facilities in Arab localities. The Committee further notes that the JDC-Tevet Work Plan focuses on increasing skill training programs and career advancement programs in Riyan employment centers, launching activities that create job opportunities within Arab towns, and introducing career development programmes for Arab youth. The Committee requests the Government to provide updated detailed information on the measures taken to promote full, productive and freely chosen employment among the Arab, Druze and Circassian population. It also requests the Government to provide statistical information, disaggregated by sex, on the impact of such measures.

Ultra-Orthodox (Haredim) population. The Committee notes, from the JDC-Tevet Work Plan, that the ultra-Orthodox community is one of the country’s poorest community, with 52.4 per cent below the poverty line in 2015. Men’s participation in the workforce in the beginning of 2017 was 50.8 per cent. According to the cited report, the main reasons contributing to ultra-Orthodox poverty include low workforce participation of men as well as low pay due to insufficient formal and academic education and part-time work. The Committee notes that the Three-Year Work Plan 2018-20 of the JDC-Tevet envisages the integration of newly developed TEVET programs and tools into ultra-Orthodox employment centers to strengthen their professional abilities. In this regard, JDC-TEVET is preparing to hand over to the Government the implementation of the Career Alternatives Program “Chen” aimed at increasing the number of ultra-Orthodox women aged 18 to 21 in gainful, quality employment by creating employment-targeted study tracks at the ultra-Orthodox seminars. In addition, the Committee notes the implementation of the one-year training programme “Movilot”, which provides individual guidance and support as well as group training and mentoring to Haredi women. The Committee requests the Government to provide information on the measures taken to promote full, productive and freely chosen employment among Ultra-Orthodox (Haredim) population. It further requests the Government to provide statistical information, disaggregated by sex, on the impact of such measures.

Workers with disabilities. The Committee notes that, from the JDC-Tevet Work Plan, under newly enacted laws and regulations, the statutory employment quota of persons with disabilities for enterprises with 100 or more employees is established at 5 per cent in the public sector and 3 per cent in the private sector. However, according to the JDC-Tevet Work Plan, only 50 per cent of persons of working age with disabilities are employed, compared with 73 per cent among those without disabilities. The report adds that only 20 per cent of recipients of disability benefits are employed, mostly in jobs not commensurate with their skills or education. Against this backdrop, the Committee notes that JDC-Tevet is implementing several pilot programmes to promote the access of persons with disabilities to the labour market. In particular, the programmes “Ram Up” and “Focus” are aimed at integrating persons with disabilities in the workforce and supporting people with learning disabilities who are challenged in the work environment, respectively. The JDC-Tevet is also implementing the “Incorporate Israel” program with the objective of promoting the access of persons with disabilities to the fields of finance, insurance and hi-tech in Tel Aviv. The Committee requests the Government to provide updated detailed information on the measures taken or envisaged to promote employment opportunities of persons with disabilities in the open labour market and on their impact. It also requests the Government to indicate whether the implementation of such pilot programmes has been extended.

Coordination of education and technical and occupational training measures with the employment policy. The Committee notes that, according to the OECD Economic Survey, large wage gaps between Israeli-Arabs and Haredim and the rest of the population can be explained by differences in skills. These differences limit the effectiveness of their employment gains for lowering poverty (Israeli-Arabs and Haredim earn on average 70 per cent and almost 90 per cent of the median hourly wage, respectively) and perpetuate the strong disparities in formal education between these groups and the rest of the population. The OECD Economic Survey highlights that the large dispersion in skills and student’s outcomes is related to the segregated education system, which comprises four streams: one for Arabic speakers and three for the Hebrew-speaking communities, including Haredi, state-religious and state schools. Moreover, the cited Survey states that another problem that exacerbates skills differences is the low quality of initial vocational education and training (VET) system. In particular, the OECD Economic Survey points out that VET is underdeveloped, and many tertiary educated graduates are employed in jobs not matching their field of studies, which harms their wages and employment prospects. With respect to Israel’s tertiary education, the OECD Economic Survey highlights that it faces two serious challenges: making it more accessible for Haredim and Israeli-Arabs; and improving the matching of students’ skills to changing labour market needs. The Committee notes that the JDC-TEVET Work Plan 2018-20 includes among its objectives developing skills for a changing labour market through innovative vocational training for new occupations and new forms of work, as well as increasing and strengthening partnerships with employers. In this context, the JDC-TEVET is implementing the “Starter” pilot vocational training model in several industries. This VET model combines theoretical studies and on-the-job training with employers. The Committee requests the Government to provide detailed updated information on the measures taken or contemplated, in cooperation with the social partners and the representatives of different sectors, for coordinating education and training policies with possible employment opportunities. It also requests the Government to provide statistical information, disaggregated by sex and age, on the impact of the aforementioned measures on job creation, especially with regard to Israeli-Arabs and Haredim population.

Direct Request (CEACR) - adopted 2016, published 106th ILC session (2017)

Articles 1–3 of the Convention. Employment trends, economic and social policy. The Committee notes the Government’s report concerning increases in the employment rate for the total Jewish population aged 25 to 64. According to the Government’s report, the employment rate for women rose from 77.4 per cent in 2012 to 79.3 per cent in 2014, whereas the employment rate for men rose from 81.9 per cent to 82.5 per cent during the same period. The employment rate of members of the Haredi religious community, a focus of governmental employment policy measures, has also continued to increase, reaching 65.4 per cent for women and 41.2 per cent for men in 2012. In 2014, 70.8 per cent of the women and 45.2 per cent of the men from this community were employed. The Government adds that, according to data from the Central Bureau of Statistics’ Social Survey, the employment rate for persons between 20 and 64 years with moderate disabilities increased from 60 per cent in 2011 to 65 per cent in 2013, while the employment rate of persons with severe disabilities rose from 32 to 42 per cent. The Committee notes that, according to OECD statistics, the unemployment rate in the country decreased from 5.9 per cent in 2014 to 5.2 per cent in 2015. The Committee also notes that further improvements were introduced to the Earned Income Tax Credit (EITC) scheme to increase the EITC by 50 per cent for working mothers and fathers, and efforts were made to increase uptake of the allowance, which increased from 51.8 per cent in the 2011 tax year to 65.3 per cent in the 2012 tax year. The Committee further notes improvements made to increase accessibility of unemployment and income support benefits. The Government indicates that the qualification formula for unemployment benefits was expanded to increase accessibility for day workers. As a result, all workers employed for a period commensurate with the qualification period are now entitled to the benefit even if they were only employed a few days per month. Consequently, the number of people entitled to unemployment benefits increased by 10 per cent. With regard to income support, the Government indicates that the definition of income, on the basis of which the determination of eligibility for income support is made, has been adjusted in favour of applicants, and makes allowances for family support, car ownership and income from real estate. The Committee requests the Government to continue to provide information on active employment measures adopted, with the participation of the social partners, and their outcomes to promote full, productive and sustainable employment opportunities, as laid down in Articles 1–3 of the Convention.

Measures to increase active labour market participation. The Government indicates that over the past three years, the Public Employment Service (PES) has been expanding the package of services it provides, with a focus on recipients of income support. The Committee notes the information provided on the “Employment Circles” pilot programme, which is targeted at new applicants for income support. Launched by the PES in 2014, Employment Circles operates in 15 PES employment offices that were chosen to represent a variety of population groups. The programme implements an improved employment test and provides additional support to enhance applicants’ ability to integrate the labour market. In 2014, its first year, 3,500 persons participated in the programme; and an evaluation showed that after 10 months of operation, the rate of placement for participants was higher than for peers from a control group. The Government also highlights the expansion of the personalized vocational training voucher system established in 2011, which provides partial funding for vocational training for jobseekers, which enables them to obtain training suitable for their needs. To expand access to the vouchers, one-stop employment centres were set up in 2013, and the range of professions included in the system has been increased. As a result, the number of voucher recipients increased from 1,450 in 2011 to 2,380 in 2014, of which 1,565 were from minority groups, including 425 from the Haredi religious community. The Committee requests the Government to continue to provide information on measures aimed at assisting jobseekers in obtaining full, productive and sustainable employment, including information on the impact of the measures taken in the areas of education and vocational training. Please also provide information on the impact of the measures taken in the areas of education and vocational training, including statistics disaggregated by age and sex.

Workers with disabilities. The Committee notes the Government’s reply to its previous request, indicating that 225,000 persons with disabilities in the country are of working age and are entitled to a general disability pension. As a result of incentives implemented since 2009, the employment rate of persons entitled to a disability pension increased from 16 to 20 per cent, however, the vast majority earns less than half of the average wage. The Government further indicates that, since 2014, the rate of increase of recipients of a general disability pension has aligned itself with the 1.8 per cent growth rate of the overall population aged 18 to 64. The Committee requests the Government to continue to provide updated information on measures aimed at increasing the employment rate of specific categories of workers, including women, young persons, older workers, workers with disabilities and workers belonging to ethnic or religious minorities, as well as detailed information on the impact of such measures.

Direct Request (CEACR) - adopted 2013, published 103rd ILC session (2014)

Employment trends and coordination of economic and social policy with poverty reduction. The Committee notes the Government’s detailed report in relation to its 2011 direct request. The Government indicates that a policy to enhance support to low-income working families is being pursued with a view to reducing poverty and promoting workers’ entry into the labour market. In 2011 the Earned Income Tax Credit (EITC) was expanded to increase the number of beneficiaries and the level of the benefits. Additionally, in order to stimulate employment and to ease the financial burden on families with children, the number of tax credit points for working parents of preschool children was raised in 2012, expected to benefit about 280,000 families. Moreover, in 2011 the number of day-care centres increased, particularly those with state support, as well as day-care subsidies for low-income families. The Committee notes the gradual extension of the Compulsory Education Law, which ensures publicly funded free education, to children aged 3 and 4 years old, irrespective of whether their parents are working or not. The Government indicates that several recent employment and active labour market measures were adopted following the recommendations of the Trajtemberg Committee on socio-economic change, which is made up of government, academia and private sector representatives.The Committee notes that, based on OECD statistics, the country’s economy grew at 4.8 per cent both in 2010 and in 2011 and the unemployment rate fell from 6.6 per cent in 2010 to 5.6 per cent in 2011. The Committee invites the Government to continue to provide in its next report information on active employment measures adopted, with the participation of the social partners, and their outcomes with the objective to eliminate poverty in the country and to promote full, productive and lasting employment opportunities, as required by Articles 1, 2 and 3 of the Convention.

Implementation of active labour market measures. The Committee notes the Government’s indication that the Public Employment Service (PES) has taken steps to improve access to and the quality of services provided to jobseekers, with an emphasis on the peripheral geographic areas. The Government reports that the number of PES consultants was expected to reach 200 persons in 2012. The Government also indicates that the PES offers different types of workshops for jobseekers. The Committee notes with interest that an upgraded management information system to support the activities of the PES is expected to be operational by 2013. By means of an advanced artificial intelligence analysis, this system mainly intends to gather information on employers and jobseekers and to improve the matching between the services provided and the users’ needs. Furthermore, the Government indicates in its report on the application of the Human Resources Development Convention, 1975 (No. 142), received in August 2013, that the Manpower Training and Development Bureau (MTDB) at the Ministry of the Economy is using a voucher scheme, which adapts the training offer to the jobseeker’s personal needs, as a vocational training option. The Committee invites the Government to continue to provide information on how the PES contributes to assist workers and employers in finding suitable employment. Please also include information on the impact of the measures taken in the area of education and training policies to ensure the integration of jobseekers in the labour market.

Specific categories of vulnerable workers. In reply to previous comments, the Government indicates that an accrued participation of people from the ultra Orthodox community in the labour market is crucial both to reduce poverty and dependence on public benefits and to integrate that community into the society. As a result of several measures implemented, according to the Bank of Israel, the employment rate of ultra-Orthodox men between 25 and 64 years of age increased from 39.6 per cent in 2008 to 45.6 per cent in 2011, and the employment rate of ultra-Orthodox women in the same age group increased from 57.4 per cent in 2008 to 61.2 per cent in 2011. With regard to other categories of vulnerable workers, the Government indicates that 55 employment programmes focusing on persons with disabilities and other persons and communities at risk are currently being implemented, serving about 31,000 participants so far. The Committee invites the Government to continue to provide information on the impact of the measures aimed at increasing the employment level of vulnerable categories of workers.

Direct Request (CEACR) - adopted 2011, published 101st ILC session (2012)

Articles 1 and 2 of the Convention. Employment trends and coordination of economic and social policy with poverty reduction. The Committee notes the Government’s brief report received in August 2011 which includes replies to the 2010 direct request and labour market studies with regard to the ultra-Orthodox sector, persons with disabilities, and the Ethiopian community. Referring to poverty reduction measures, the Government reports that the pilot scheme which was introduced in several communities has been extended to cover the whole of the country and it estimates that the measure will have an effect on reducing the level of poverty, especially among the lower-paid. It further indicates that the Wisconsin programme, which was successful in increasing the number of persons in employment, was shut down in May 2010, however, an attempt to revive it is under way. The Committee notes an evaluation report of the programme provided by the Government which examines the changes in employment status and receipt of the income support allowance. The main issue covered in the report is the degree of perseverance in employment of those who entered the labour market during the programme. With regard to the Inter-Ministerial Committee to Examine Employment Policy, the Government indicates that a Coordinator has been appointed to oversee all agencies charged with responsibilities in the employment field. In the Government’s view, the appointment will have a positive effect on achieving the objective of increasing the participation rate in the labour market. The Committee notes data made available by the ILO Department of Statistics indicating that the unemployment rate in Israel was 6.1 per cent in 2008, 7.6 per cent in 2009, and 6.6 per cent in 2010. Figures for the second quarter of 2011 measure the unemployment rate at 5.2 per cent. The Committee requests the Government to provide detailed information in its next report on the policies and programmes that promote full, productive and lasting employment opportunities to the unemployed. It also asks the Government to include information on how its programmes and policy measures specifically address poverty reduction.

Implementation of active labour market measures. The Government indicates that all programmes created and promoted by the Employment Service are designed, inter alia, to intensify the interaction with the other Ministry Units, such as the intensification of working procedure with the vocational training unit in the field. The Ministry Directorate estimates that these changes will produce positive results in the not too distant future. The Committee requests the Government to provide detailed information on the results of the Employment Service’s measures in increasing productive and lasting employment opportunities to ensure the integration of disadvantaged workers in the labour market.

Specific categories of vulnerable workers. The Government indicates that vulnerable groups of workers have been provided with the appropriate tools for their integration in the labour market. It indicates that these tools should ultimately generate positive results in terms of increasing the employment rate of these vulnerable groups. The Committee notes the policy paper presenting the main points of a research project conducted by the National Economic Council on the issue of removing barriers for employment in the ultra-Orthodox sector. The paper lists the government policy tools that influence the promotion of employment in the ultra-Orthodox sector and concludes by proposing long-term employment targets which represent 63 per cent for ultra-Orthodox men and maintaining the employment rate of 54 per cent for ultra-Orthodox women while raising their rate of participation in professions outside the education sector. The Committee also notes the Summarizing Report on the integration of Ethiopians in the Civil Service in the year 2010 which emphasizes the fact that, on a quantitative scale, the proportional representation of the population is maintained. Members of the Ethiopian community make up about 1.5 per cent of all citizens and occupied 1.31 per cent of all civil servant jobs in 2010 and 1.27 per cent in 2009. The Committee invites the Government to provide information on the impact of measures aimed at increasing the employment level of vulnerable categories of workers.

Article 3. Participation of the social partners. The Government indicates that collaboration exists at various levels between the Government, employer and worker organizations. The Government intends to draw the attention of the Employment Service to this tripartite approach and encourage its adoption to its activities. It further indicates in its report that employer and worker representatives were members of the Inter-Ministerial Committee that examines employment policy. The Committee invites the Government to provide detailed information in its next report on consultations held with representatives of employers’ and workers’ organizations and representatives of other sectors of the economically active population involved in the formulation and implementation of active employment policies.

Direct Request (CEACR) - adopted 2010, published 100th ILC session (2011)

The Committee notes the Government’s report received in September 2009 including its replies to the 2008 direct request.

Articles 1 and 2 of the Convention. Employment trends and coordination of economic and social policy with poverty reduction. The Government reports a rise in the employment rate from 68.61 per cent in 2006 to 70.9 per cent in 2008, as well as the rate’s subsequent fall to 70 per cent in early 2009 due to the global crisis. The Committee notes the twin goals of the Socio-Economic Policy 2010–13 to increase the employment rate to 71.7 per cent by 2013 and to reduce poverty in the bottom fifth of the society through growth in this segment’s income from employment. It further notes that the goal of a 71.7 per cent employment rate, initially set to 2010, has been deferred to 2012 as a result of the crisis. The Government indicates that its policy tools include: welfare to work programmes, pilot negative income tax programmes, disability allowance schemes promoting integration, and special agencies for particular groups of the population. The Inter-Ministerial Committee for the Implementation of the Agenda evaluates the progress towards these goals and publishes a detailed annual report. The Committee appreciates the Government’s evaluation of the 2007 Orot Letaasuka programme for integrating welfare recipients in the workforce through special courses and financial incentives, which indicates a positive change of 8.2 per cent in the employment rate when measured against that of the control group. The Committee invites the Government to continue providing information on the policies and programmes that promote full, productive and lasting employment opportunities to the unemployed and other categories of workers affected by the crisis. It also invites the Government to include in its next report information on how its programmes and policy measures specifically addresses poverty reduction.

Implementation of active labour market measures. The Committee notes the Government’s description of the progress made to increase the quality of the Employment Service’s job placements, including changes in its registration and interview processes, technological improvements in database maintenance, staff training and provision of special workshops for disadvantaged workers. The Committee invites the Government to provide information on the success of the Employment Service’s new measures in increasing productive and lasting employment opportunities to ensure the integration of disadvantaged workers in the labour market.

Specific categories of vulnerable workers. The Government refers to new legislation enacted in April 2008 which aims to promote female employment. The Government has also identified the need to integrate 135,000 additional persons to close the 3 per cent gap between Israel’s and the average G7 employment participation rates by focusing on particular categories of the population, such as workers of Ethiopian origin and persons with disabilities. The Government indicates that an allocation of 5 million Shekels was granted for the improvement of existing businesses and the establishment of 150–200 new businesses for persons with disabilities. The Committee invites the Government to provide information on the impact of such measures on the employment level of vulnerable categories of workers.

Article 3. Participation of the social partners. In reply to the Committee’s previous comments, the Government indicates that there is no structured form of consultation with social partners and that the Employment Service Council has not been active for some time. One employers’ organization and one workers’ organization are represented in a body that advises the Director-General. The Committee emphasizes that social dialogue is essential in normal times and that it becomes even more so in times of crisis. The employment instruments require member States to promote and engage in genuine tripartite consultations (General Survey of 2010 on employment instruments, paragraph 794). The Committee invites the Government to intensify its efforts to take into account the stakeholders’ perspectives in formulating and implementing employment policies. The Committee asks the Government to address this essential issue in its next report by demonstrating how the representatives of employers and workers are consulted at the policy planning and implementation stages so that their experience and views are taken into account.

Direct Request (CEACR) - adopted 2008, published 98th ILC session (2009)

1. Articles 1 and 2 of the Convention. Employment trends and active labour market policies. The Committee notes the Government’s report received in October 2007 including replies to the 2005 direct request. It further notes the Socio-Economic Agenda, Israel 2008–10, prepared by the National Economic Council which includes two primary goals: to reduce poverty while encouraging growth and to create leverages for balanced, long-term growth. More specifically, the first goal is to reduce the incidence of poverty among Israeli families to a rate of 17.2 per cent by the end of 2010, compared to 20.2 per cent in 2007. The National Economic Council also indicates in the Agenda that young workers who will join the labour market in five–ten years will arrive with clear disadvantages in education, health and other skills needed to utilize their production potential. The Government indicates that a programme, Orot Letaasuka (formerly the Wisconsin Programme), is being implemented to integrate recipients of benefits in the workforce. According to statistics provided by the Government, the unemployment rate decreased from 10.4 per cent in 2004 and 9 per cent in 2005 to 8.4 per cent in 2006. The Committee asks the Government to provide further information on the effects of active labour market measures implemented and on achieving the employment goals listed in the Socio-Economic Agenda. It would also like information on the manner in which poverty reduction is specifically addressed in programmes and policy measures.

2. Furthermore, the Government indicates that, within the scope of the reform of the Employment Service, periodic, measurable performance targets were set in January 2004, and the increase in the employment volume was examined on a monthly and quarterly basis. In order to bring about a real increase in the number of jobs, employees of the Employment Service were remunerated according to output. Further to these incentives, there was a 29.9 per cent increase in the volume of job orders in 2004 as compared to 2003, while the volume of job placements increased by 23.1 per cent. In 2005, the number of job orders increased by 22.3 per cent, while job placements increased by 12.9 per cent. In 2006, the emphasis was placed on quality placements (meaning that an employee holds a job for at least 90 days). Consequently, there was a very limited increase in 2006, 1.4 per cent, in the number of job orders, and a drop of 8.5 per cent in the volume of job placements. Actions taken within the scope of the reform of the Employment Service include: employee training to improve the handling of jobseekers; information kiosks set up at employment bureaus; the creation of a job search web site; and a change to the interviewing process. The Committee asks the Government to continue providing information on the progress made by the switch to the quality placement model of the Employment Service and how the reform of the Employment Service will translate into productive and lasting employment opportunities for the unemployed.

3. Specific categories of vulnerable workers. The Government indicates that the National Insurance Institute is implementing activities targeting specific categories of vulnerable workers. As indicated in a December 2006 document published by the Institute, the goal of the Reshet Model, Continual Occupational Services Programme, was the integration of Ethiopian income-support recipients into the labour market by strengthening their qualifications to compete for jobs. The Committee notes the high rate of employment of the programme’s participants, approximately 75 per cent, as compared to 32 per cent among candidates who did not join the programme. The Committee asks the Government to provide in it next report detailed information on the impact of measures designed to encourage and support employment levels of vulnerable categories of workers such as Ethiopian jobseekers, older workers and persons with disabilities.

4. Article 3. Participation of the social partners in the formulation and application of policies. The Government indicates that the employment policy of the Ministry of Industry, Trade and Labour’s Employment Service is formulated as a collaborative effort, through constant consultation, particularly with employers’ organizations. At the formal level, in the Employment Service Council, employers’ organizations, as well as labour organizations constituting an integral part of the Council, are also consulted. The Government further indicates that the Ministry of Industry, Trade and Labour’s Vocational Training Division routinely consults with employers’ organizations and professional unions. The Committee asks the Government to include in its next report information on the manner in which the consultations held by the Employment Service Council as well as by the National Economic Council have contributed to the implementation of an active employment policy within the meaning of the Convention.

Direct Request (CEACR) - adopted 2005, published 95th ILC session (2006)

1. The Committee notes the information and the detailed statistical data contained in the Government’s report received in December 2004 and September 2005. It also takes note of the information contained in the document issued by the Ministry of Industry, Trade and Employment, Employer’s survey: Demand for Workers in the business sector - 2nd Quarter/2005. According to this document, the positive trend in demands for workers accelerated and there was a significant improvement in other indicators in the job market. The unemployment rate decreased from 10.1 per cent in 2001 to 9.1 in the second quarter of 2005. Analysis of the second quarter of 2005 also reveals that employers are increasingly employing workers for longer periods. Improvement in the job market is also reflected in reports of employers concerning the difficulties they are experiencing filling vacancies in certain areas. The Committee requests the Government to provide, in its next report, detailed information on full- and part-time employment disaggregated data by age and gender, and other data on the situation, level and terms of employment and underemployment, so that it can examine the employment policy measures implemented in the country (Articles 1 and 2 of the Convention). The Committee reiterates its interest in information on how measures taken to promote employment operate within a "framework of a coordinated economic and social policy" (Article 2, paragraph (a)). In this respect, it would appreciate if the Government could also indicate how the key elements of monetary and fiscal policies contribute to employment objectives.

2. As regards the evaluation of the impact of the reform of the Employment Service raised in the 2003 direct request, the Government indicates that the relevant data are not yet available. The Committee hopes the Government will provide, in its next report, information on the various programmes implemented by the Employment Service and their impact on employment promotion.

3. Participation of the social partners. The Committee asks the Government to update, in its next report, information on consultations with the social partners which have taken place on the subject of employment policies, as requested by Article 3 of the Convention, by giving examples of the opinions expressed and the manner in which they were taken into account.

Direct Request (CEACR) - adopted 2003, published 92nd ILC session (2004)

The Committee notes the information contained in the Government’s report received in November 2002.

1. In relation with its 2001 direct request, the Government states that in 2001 Israel’s economy suffered the worst recession it has known in a very long time. GDP fell by 0.6 per cent, per capita GDP dropped by 8.2 per cent, business-sector product went down by 1.9 per cent, and employment in that sector also fell. The poor economic conditions during the period 2000-02 contributed to a rise in unemployment, which went from 8.8 per cent in 2000 to an estimated 10.2 per cent at the end of 2001. The Government makes reference to the global economic downturn, the security situation in Israel and the crisis in capital markets throughout the world as aggravating factors that made it impossible to ameliorate the situation in the labour market. The Committee welcomes the detailed statistics furnished by the Government and trusts that in its next report the Government will continue to provide detailed information on full and part-time employment and disaggregated data by age and gender and other data on the situation, level and terms of employment and underemployment (please refer to the information requested in the report form under Articles 1 and 2 of the Convention).

2. The Committee also notes the Government’s statement concerning reforms of the Employment Service, including new courses of instruction for Employment Service staff, improved administrative techniques and increased contact with institutions that work with the Employment Service (inter alia, the National Insurance Institute and the Ministries of Trade and Industry and Absorption). These reforms have aided the Employment Service in dealing with the increase in unemployed jobseekers as a result of a weakened economy and the rise in unemployment. Other measures implemented include the "From Welfare to Work" experiment scheduled to begin in 2003 that envisages the participation of private employment agencies alongside the Employment Service. Please continue to report on the various programmes implemented and their impact on employment promotion. The Government might consider it useful to refer to the instruments on private employment agencies adopted by the Conference at its 85th Session (1997).

3. The Committee notes the information on the participation of the social partners in employment services and consultation with them in taking decisions liable to have an influence on employment and economic policy in the circumstances of November 2002. It requests the Government to update information on consultations with employers’ and workers’ organizations which have taken place on the subject of employment policies, as requested by Article 3 of the Convention, by giving examples of the opinions expressed and the manner in which they were taken into account.

Direct Request (CEACR) - adopted 2001, published 90th ILC session (2002)

The Committee notes the information contained in the Government’s report for 1998-99.

1. Article 1 of the Convention. The Government states that employment has risen significantly, but nonetheless, unemployment also rose during this period, due to a large decrease in vacancies. Unemployment increased from 8.6 per cent in 1998 to 8.9 per cent in 1999. Unemployment for women rose from 9.2 per cent in 1998 to 9.4 per cent in 1999. Unemployment among youth (15-24 years old) rose by 15 per cent during 1997-98, but decreased by about 2 per cent in the first two quarters of 2000. Unemployment among new immigrants decreased from 11.7 per cent in 1998 to 10.9 per cent at the end of 1999. Please continue to provide disaggregated data on labour market trends, including the nature of job growth (full-time, part-time, temporary, etc).

2. The Government states that it is focusing on improving the Employment Service in several ways to reduce frictional unemployment. It has strengthened its contacts with employers, both directly and through business organizations, to improve its placement and follow-up services. And it has established Internet sites for disseminating information on available jobs and jobseekers. The Government has adapted its vocational training to better prepare workers to use new technologies, and is looking at concrete ways to implement the concept of lifelong learning. Furthermore, the Government is considering extending the scope of its public works projects, particularly to those who have been unemployed long term. It intends to combine participation on these projects with education and training opportunities, to broaden the skills of participants. The Committee would appreciate receiving further information on the impact of these measures on employment promotion. Please also provide further information on the number of participants and the criteria used for selection.

3. The Committee notes that draft policies had been prepared to address structural unemployment, but they had not yet been approved by the Minister of Labour and Social Affairs. Please indicate whether these policies have been adopted and the measures taken to implement them.

4. Article 2, in conjunction with Article 3. In reply to previous comments, the Government states that employment policy is first proposed by the Minister of Labour and Social Affairs and then adapted to general economic policy. The final policy is implemented through specific programmes and twice yearly reviewed. The Government also states that general economic policy is determined in cooperation with the Economic and Social Council, which is chaired by the Prime Minister and includes participation of employers’ organizations, the General Federation of Labour, and several government ministries. The social partners are also consulted when legislation is under consideration. The Committee notes this information and would appreciate continuing to give details on the outcome of the evaluations and on ways in which the views of representatives of workers’ and employers’ organizations are taken into account.

Direct Request (CEACR) - adopted 1999, published 88th ILC session (2000)

The Committee notes the information contained in the Government's report covering the period 1997-98. The Government states that economic growth began to slow substantially at the end of 1996, due to anti-inflation measures taken. GDP grew by less than 2 per cent in 1997, down from 4.5 per cent in 1996. Those most affected by the increase in unemployment are the young (aged 15-24), people who did not finish secondary school, and those living in developing areas. The Government is attempting to reduce interest rates gradually to stimulate growth. The Government adds that a decrease in the number of vacancies being posted in the Employment Service has resulted in fewer suitable jobs for registered jobseekers, leading to longer duration of unemployment spells. The Government is looking into transferring some functions of the Employment Service to private agencies to remedy the situation. The Government also is in the process of examining a proposal to replace "crisis" courses offered in times of unemployment with lifetime studies, to reduce the problem of mismatch. It also intends to increase the number of vocational courses available and to extend public works projects. The Committee would appreciate receiving further information on the effect of these efforts to promote full, productive and freely chosen employment, in accordance with Article 1 of the Convention. The Committee also notes the employment statistics supplied in the report and asks the Government to supply information on the trends of underemployment, as requested in the report form under Article 1.

Further to its previous comments, the Committee would appreciate additional information on the procedures adopted to ensure that the principal measures of employment policy are decided on and kept under periodical review within the framework of a coordinated economic and social policy, as specified in Article 2. It asks the Government to indicate whether formal procedures have been established for consulting with representatives of workers' and employers' organizations, and representatives of other sectors of the economically active population such as those working in the rural and informal sectors, on employment policies, as required in Article 3.

Direct Request (CEACR) - adopted 1997, published 86th ILC session (1998)

1. The Committee took note of the Government's report on application of the Convention in 1995 and of the information supplied in reply to its previous request. It notes that the rapid growth in employment already recorded during the previous period has continued in 1995 and has allowed a further decrease in the unemployment level which stood at 6.2 per cent of the active population in the first six months of 1996. The Committee notes that, in the Government's view, this unemployment rate amounts to full employment, although there are pockets of unemployment which it intends to reduce through vocational training measures and temporary employment projects. The Government considers furthermore that the high growth rate of the economy has been achieved by increasing the deficit in the balance of payments and cannot be maintained in future. With reference to its previous request, the Committee invites the Government to indicate in its next report how the measures taken in spheres such as budgetary, monetary and exchange rate policies and price, income and salary policies are contributing "within the framework of a coordinated economic and social policy" to pursuing the goal of full employment (on this matter, see the relevant questions of the report form under Articles 1 and 2 of the Convention).

2. The Committee notes that the extent of the various employment promotion programmes has been reduced as the employment situation has improved. Noting that assessment of the effectiveness of these programmes is in process, it requests the Government to supply with its next report the results of that evaluation, indicating any new measures taken or envisaged as a consequence.

3. The Committee would be grateful if the Government would describe the consultations of employers' and workers' representatives on the subject of employment policies which have taken place during the reporting period. It recalls in this respect that the consultations required by Article 3 of the Convention should not concern only the implementation of labour market policy measures but be extended to all aspects of economic and social policy which exert an influence on employment.

Direct Request (CEACR) - adopted 1995, published 83rd ILC session (1996)

1. The Committee notes the Government's report for the period ending June 1994 and the information supplied in reply to its previous request. The detailed data in the report show that the rapid growth in the economy at the end of the period has allowed an expansion in employment of Israelis in the public and private sectors greater than the increase in the labour force and a steep decline in the unemployment rate which, after culminating at 11.2 per cent in 1992, amounted to 7.8 per cent in 1994. The Government stresses in particular the positive effects of employment expansion on the reduction of unemployment among women, young people and, in particular, new immigrants who in view of their increased rate of employment, are enjoying rapid integration into the labour market. With reference to its previous comments, the Committee notes that it has been possible to reduce the unemployment rate from its 1989 level, although the working population has increased meanwhile by some 25 per cent.

2. The Committee has also taken note of the analyses of the Bank of Israel which indicates in its annual report for 1994 that this rapid growth in work and employment, attributed essentially to expansionist budgetary and monetary policies, has been accompanied by stagnation in productivity, increased inflation and growth in the balance of payments deficit. In this context, the Committee would be grateful if the Government would specify in its next report the measures implemented or envisaged "within the framework of a coordinated economic and social policy" and bearing in mind "the mutual relationships between employment objectives and other economic and social objectives" in order to pursue as a major goal the promotion of full, productive and freely chosen employment in accordance with Articles 1 and 2 of the Convention.

3. The Government, which sees increased employment as an effect of investment and economic activity, states that the wage subsidies established in 1991 have been abolished. Nonetheless, other programmes to promote employment have been implemented since 1992. One of them, specially designed for new immigrants, aged 45 and over, provides financial assistance to employers participating in their integration. New immigrants are also among the main beneficiaries of the adult on-the-job training and temporary public works projects. The Committee would be grateful if the Government would continue to supply information on these various programmes, along with any available assessment of the results attained, both in terms of lasting integration in employment of those concerned and in relation to their possible effects on employment of other groups of the working population.

4. The Committee notes with interest the indications on the effect given to Article 3 of the Convention by participation of the social partners in employment services management and consultation with them in taking decisions liable to have an influence on employment, especially in regard to setting the minimum wage and the unemployment compensation policy. It requests the Government to continue to supply information on consultations with organizations of employers and workers which have taken place on the subject of employment policies by giving examples of the opinions expressed and the manner in which they were taken into account.

Direct Request (CEACR) - adopted 1994, published 81st ILC session (1994)

1. The Committee notes the Government's report for the period ending June 1992 and the information supplied in reply to its previous direct request. It notes the significant increase in the unemployment rate, which rose from 9.6 per cent in 1990 to over 11 per cent in 1992, despite a sustained growth in economic activity. The Committee notes that the arrival of new immigrants during the period contributed both to the increase in employment and the rise in unemployment. The Government notes a slowing down of immigration at the end of the period, and a lowering of the unemployment rate among the new immigrants, illustrating their progressive integration into the labour market. The Committee requests the Government to continue to supply detailed information on the measures which are taken to encourage the integration of the new arrivals into employment.

2. The Government states that, up to June 1992, its employment policy continued to be based partly on the adoption of measures to seek greater flexibility in the labour market through a reduction in the cost of labour for employers, the introduction of more restrictive conditions for access to unemployment benefit and the authorization of private employment agencies, as well as on the implementation of short-term programmes to combat unemployment. The Committee notes with interest the increase in the number of beneficiaries of vocational training courses for adults. It also notes that, since the beginning of 1992, the Government has been encouraging the creation of new jobs through subsidies to partly cover wages during the first two years following recruitment. Please supply any available evaluation of the results obtained by this measure. More generally, the Committee would be grateful if the Government would supply information on specific employment promotion policies and programmes which, according to the report, were under examination by the new Government formed after the June 1992 elections.

3. The Committee notes the statement that the Government's plan to change the system for fixing minimum wages encountered determined opposition from the Histadrut. With reference to its previous request, the Committee would be grateful if the Government would supply information in its next report on the consultations held with representatives of the persons affected concerning the employment policies followed during the reference period, in accordance with Article 3 of the Convention, with an indication of their objective, the opinions expressed and the manner in which they were taken into account.

Direct Request (CEACR) - adopted 1992, published 79th ILC session (1992)

1. The Committee takes note of the Government's detailed report for the period ending June 1990 and the information provided in reply to its direct request. It notes that the downward trend in the employment situation referred to by the Government in its previous report continued during the period under consideration. The slow-down in economic growth was accommpanied by low growth in employment and a further increase in unemployment which affected 9.5 per cent of the active population in 1990. Despite a revival in economic growth at the end of the period, the employment situation remains worrying, particularly in view of the rapid increase in the active population and the present large-scale influx of new immigrants.

2. The Government indicates that its employment policy is aimed at achieving the high level of economic growth needed to expand employment through general economic policy measures, and at curbing the increase in unemployment in the short term through immediate measures in the labour market. In addition to measures to encourage private investment, the plan to stimulate economic growth includes measures to encourage greater flexibility in the labour market and wages, such as reducing the cost of labour by changing the legislation on the minimum wage, introducing more restrictive conditions for access to unemployment insurance benefits and lifting the state monopoly on employment services. Short-term action to curb unemployment includes stronger measures for the prevention of the illegal employment of foreign workers, the development of vocational training programmes, financial assistance to enterprises for the creation of jobs and the creation of temporary jobs in the public sector.

3. The Committee would be grateful if in its next report the Government would provide particulars of the implementation of the above measures and of how their impact - both past and future - on employment is evaluated. It also requests the Government to provide detailed information on the consequences of the recent large-scale influx of immigration for employment, the arrangements made to encourage the integration of the persons concerned into the labour market and any effects that this integration may have on the employment of other groups of the active population.

4. The Committee notes with interest the information concerning the consultation of the representatives of employers' and workers' organisations on employment policies. It notes that the Histadrut, which is associated with the discussions on employment policy at the highest level, is opposed to certain measures envisaged by the Government, and particularly the proposed changes in the system for fixing the minimum wage, and that the Government continues to seek an agreement on the matter. The Committee has no doubt that the Government will continue to provide information on the development of consultations with the representatives of the persons affected concerning employment policies.

Direct Request (CEACR) - adopted 1990, published 77th ILC session (1990)

1. The Committee has noted the Government's report for the period ending June 1988, which contains replies to its previous comments. The data supplied in the report show that the unemployment rate fell from 7.1 per cent in 1986 to 6.1 per cent in 1987, but increased steadily since the beginning of 1988 (up to 6.9 per cent in the third quarter of 1988). Concerning the situation in the development areas the Government indicates that although unemployment is still more severe, on the average, than in the country as a whole, it had not up to the third quarter of 1988 risen at a faster pace than in the whole economy.

2. The Committee notes the broad information supplied by the Government on its economic policy measures and objectives, including the preparation of a new plan for the national economy for the period 1988-92, for which no indication, however, is given concerning its employment objectives. The Government indicates that it considers lack of overall demand rather than structural problems as the major cause of unemployment, that it believes it will need to adjust the application of macro-economic policies with a view to stimulating investment. Concerning specifically employment conditions, the report points to the reactivation of the Committee of Directors General of Economic Ministries but recognises that this cannot be expected to have a large impact on the national unemployment rate. It refers briefly also to selective measures and combined efforts with the trade unions to prevent the worsening of the employment situation.

3. Referring to its previous comments, the Committee notes that the gradual improvement in the employment situation expected by the Government did not materialise. In addition, contrary to the previous report, the report for 1987-88 foresees that the employment situation is likely to continue to worsen in the near future, affecting in particular older workers, young workers and the population of development areas. The Committee notes that this trend toward worsening employment seems to be confirmed, at least from the data for the first quarter of 1989 quoted by the Histradrut in its bulletin "Labour in Israel" (July 1989).

4. The Committee trusts that the Government will indicate in its next report the employment objectives included in development plans and programmes and describe how they are related to other economic and social objectives. Please also describe the policies and measures taken with a view to ensuring that there is work for all who are available for and seeking work, with particular reference to overall and sectoral development policies (measures in such fields as investment policy, fiscal and monetary policy, prices and wages policy, measures for maintaining and creating employment in development areas), labour market policies (measures for the adjustment of labour to structural change and measures to meet the needs of particular workers such as young people, older workers and the workers of development areas), and educational and training policies (in particular measures to co-ordinate them with prospective employment opportunities). Please refer on these points to the questions formulated in the report form under Article 1 of the Convention.

5. Please describe the procedures adopted to ensure that the effects on employment of measures taken to promote economic development receive due consideration, at both the planning and the implementation stages (Article 2).

6. Finally, please supply supplementary information concerning efforts made and measures taken in co-operation with the trade unions (Article 3).