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( ‘9789264232952’)
  • 27 Jul 2015
  • OECD
  • Pages: 88

This report delivers evidence-based and practical recommendations on how to better support employment and economic development in Israel. It builds on sub-national data analysis and consultations with local stakeholders in Haifa and Yizreel. It provides a comparative framework to understand the role of the local level in contributing to more and better quality jobs. The report can help national and local policy makers in Israel build effective and sustainable partnerships at the local level, which join-up efforts and achieve stronger outcomes across employment, training, and economic development policies. Co-ordinated policies can help workers find suitable jobs, while also stimulating entrepreneurship and productivity, which increases the quality of life and prosperity within a community as well as throughout the country.

This chapter provides an overview of Israel’s employment and skills system. While Israel has weathered the global financial crisis better than most OECD countries and unemployment remains at historically low levels, there are wide differences in labour market outcomes across certain population groups. Arab-Israelis and Ultraorthodox (Haredim) face a number of unique labour market challenges and have labour force participation rates significantly below that of the mainstream Jewish population.

While Israel weathered the global financial crisis relatively well compared to other OECD countries and unemployment remains at historically low levels, there are a number of disadvantaged groups, who face significant labour market challenges, including Arab- Israelis and the Ultra-Orthodox (Haredim). This report focuses on the specific challenges facing the Arab-Israeli population and government policies which have been introduced to increase their labour market participation.

The Local Job Creation project involves a series of country reviews in Australia, Belgium (Flanders), Canada (Ontario and Quebec), Czech Republic, France, Ireland, Israel, Italy (Autonomous Province of Trento), Korea, Sweden, the United Kingdom and the United States (California and Michigan). The key stages of each review are summarised in Box 1.

Across the OECD, policy-makers are grappling with a critical question: how to create jobs? The recent financial crisis and economic downturn has had serious consequences across most OECD countries, with rising unemployment rates and jobs being lost across many sectors. Indeed, for some countries, the effects the downturn brought with it are continuing, if not amplifying. Shrinking public budgets in some countries also mean that policy makers must now do more with less. In this context, it is necessary to think laterally about how actions in one area, such as employment and training, can have simultaneous benefits in others, such as creating new jobs and better supporting labour market inclusion.

Stimulating job creation at the local level requires integrated actions across employment, training, and economic development portfolios. Co-ordinated place-based policies can help workers find suitable jobs, while also contributing to demand by stimulating productivity. This requires flexible policy management frameworks, information, and integrated partnerships which leverage the efforts of local stakeholders. This chapter outlines the key recommendations emerging from the OECD review of local job creation policies in Israel.

This chapter highlights findings from the OECD local job creation dashboard in Israel. The findings are discussed through the four thematic areas of the review: 1) better aligning policies and programmes to local employment development; 2) adding value through skills; 3) targeting policy to local employment sectors and investing in quality jobs; and 4) being inclusive.

To better understand the role of the local level in contributing to job creation and productivity, this review examined policy and programme activities in two regions: 1) Haifa; and 2) Yizreel. This chapter provides a labour market and economic overview of each region as well as the results from an OECD LEED statistical tool which looks at the relationship between skills supply and demand at the sub-national level. Both areas have different local economies and labour market characteristics.

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