Employment rate of Israeli-Arab population decreases during war, IDI report finds

The Israel-Hamas War has significantly influenced the employment rate of the Arab-Israeli sector, a report by the Israel Democracy Institute found.

The report examined three different periods – the beginning of the war and later months, as well as data from July 2024, the most recent data available.

The report found that at the start of the war, the employment rate for Arab men fell to 53.5% and 35.6% for women after rising to 77.7 and 45%, respectively, in early 2023.

Nearly a third of Arab men who worked before the war were unemployed as of October 2023, according to the report.

Women’s employment rates surged again solely in February 2024, with data showing rates at 45%.

While men’s rates surged, they did not return to their levels before the war, remaining at 72% since the beginning of 2024.

As of July 2024, some 5.7% of Arab men aged 25-64 who had worked before the war had yet to return to work.

Decline in various sectors 

The report noted that at the start of the war, the decrease in employment was due to concerns about working with Jews. This was ascertained by examining the data from Jewish localities, where Arab workers showed a slightly more significant decline.

The hospitality and food sector suffered the most, dropping to some 34%, while the construction sector saw a drop to 65.2% from an initial 90.8%.