The first two weeks of July have seen a significant increase in the number of Israeli workers laid off, particularly in the high-tech sector, an employment survey published by the Central Bureau of Statistics on Monday shows.
According to the survey, the seventh published by the CBS since the start of the coronavirus crisis, July has seen the first drop in the number of employed Israelis since April – 79.6% of the workforce is employed, compared to 81% in June.
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Workers laid off in July now account for 7.6% of all job seekers in Israel, and 7.1% of all job seekers in the high-tech sector.
Despite the worsening crisis, the first two weeks of July saw a moderate drop in the number of workers on furlough, from 8.4% in mid-June to 7.3%. However, the number of furloughed workers in the food and beverage industry (restaurants and bars) rose in comparison to June.
"The July figures, compared to those from June, demonstrate growing harm to the large business group," the CBS report states, noting that nearly 40% of business owners reported that the worst-hit to their business had come from a drop in demand.
The report said that 17.6% of business owners reported that their businesses had been most severely affected by public health restrictions. The third-largest problem cited by business owners surveyed was cash flow.
Nearly half of employers in the high-tech sector reported that they had stopped or postponed recruitment.
One-quarter of business owners reported that they were making adjustments to accommodate the new situation in the Israeli market, including allowing employees to work from home or putting an emphasis on delivery services and online ordering. Most business owners surveyed estimated that the prices of their products would not change due to the corona crisis, and those who expected prices to change thought they would drop.
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