With the government moving ahead with its safety net plan to save pension funds, and the implementation of other measures to bail out the Israeli economy, the treasury is concerned with predictions that unemployment is likely to climb to 10%, estimating that since Elul of this year, 10,000 have lost their jobs.

Experts are addressing ominous predictions, which include predictions that in 2009, 250,000-300,000 men and women will be unemployed (8%-10%) as compared to 5.9% today (180,000).

The national government, primarily the treasury, is aware that in order to prevent this from becoming a reality, the government must become involved and immediately. Here is a look at the main points of the plan.

The government is requesting that instead of firing workers, to send them on unpaid leave for a number of months, during which time they will receive unemployment payments from Bituach Leumi. During that time period, the employer will continue making pension payments for the worker.

The government will employ thousands in non-essential positions including roadwork on non-essential roads and working in construction on projects not slated for immediate completion.

The IDF will call unemployed for reserve duty instead of calling those reservists who are employed. Officials explain this will permit the unemployed person to receive his reserve duty payment while permitting the employed reservist to continue at work.

The government will give up to 100% funding to startups unable to raise seed money as well as low-interest loans, which in some cases, a portion will become a grant if the business succeeds. If the venture fails, the person will still be entitled to unemployment benefits.

The government will seek to expand job retraining, explaining an unemployed university professor may be called upon to teach in a high school, subject matter similar to that which he taught in university. A carpenter on the other hand, who works well with his hands, may be retrained as a welder.

There are also programs to subsidize transportation costs for workers and subsidies for low-paying jobs to enable raising salaries to keep people off the poverty lines.

If and when the government and lawmakers approve the plan, it will be presented to Histadrut head Ofir Eini and the Israel Manufacturers Association for approval, and then to the general public.

(Yechiel Spira – YWN Israel)