By Steven Scheer
JERUSALEM (Reuters) – Israel’s jobless rate slipped to 2.6% in December from 2.7% a month earlier, the Central Bureau of Statistics said on Monday, indicating that military conflict continued to impact the country’s labour market.
More than 22% of the labour force were temporarily absent from work in December due to being called into military reserve duty, down from 28% in November.
The percentage of men temporarily absent from work due to military service fell to 38.5% in December from 48.6% in November.
Israel forged a ceasefire with Hezbollah in Lebanon in late November. Prior to that it was fighting both Hezbollah and Palestinian militant group Hamas in Gaza, requiring a massive call-up of reservists.
The percentage of women temporarily absent from work due to military service rose to 6.3% in December from 5.4% in November.
Last week, Israel reached a ceasefire deal with Hamas that would bring back 33 of the 98 hostages held in Gaza since Oct. 7, 2023 in exchange for the release of Palestinian prisoners in Israel.
Israel’s employment rate stood at 61.2% in December, while the labour participation rate was steady at nearly 63%.
The bureau noted that some 9% were absent from work due to economic reasons.
The broadest measure of the jobless rate – discouraged workers plus, those not participating in the labour force who stopped working due to dismissal during the last two years plus employed persons temporarily absent from work for economic reasons plus unemployed persons – edged down to 4.3% in December from 4.6% in November.
This month the Bank of Israel held its benchmark interest rate at 4.5% for the eighth straight time, with central bank chief Amir Yaron citing a “tight” labour market.
