BY LIDAR GRAVÉ-LAZI DECEMBER 27, 2017
Israel is likely to see slow economic growth due primarily to an increase in population groups with high unemployment rates and low skill sets, according to a new report released Wednesday by the Taub Center for Social Policy Studies in Israel.
The study, “A State of the Nation 2017,” is based primarily on Taub Center research compiled and edited by Professor Avi Weiss, executive director of the Taub Center and professor of Economics at Bar-Ilan University, and offers a snapshot of the socioeconomic condition of Israel in 2017.
According to the report, the past year was characterized by an increase in employment and real wages (and a decrease in the unemployment rate – at an historic low) which in turn has led to an increase in consumption as well as an increase in the standard of living.
Despite this, large parts of the labor market are still characterized by low productivity and low wages and price levels in Israel remain among the highest in the OECD.
The report offered a bleak macroeconomic long term outlook, stating that the country is expected to face demographic challenges that will “likely slow the rate of economic growth, including a decline in the share of the working-age population, alongside an increase in the share of population groups whose employment rates are relatively low and whose skills are not compatible with the modern labor market.”