The unemployment rate tripled in Israel to reach ten percent in October after the outbreak of war with the Hamas movement, which led to the displacement of tens of thousands of citizens near the Gaza border, said the Central Bureau of Statistics.
The primary unemployment rate remained steady at 3.4 percent. However, when factoring in the temporary loss of work due to the conflict, the rate reached 9.6 percent, with 428,400 people jobless compared to 163,600 in September.
The Oct.7 Hamas’ Al-Aqsa Flood operation resulted in the mobilization of nearly 400,000 Israelis to reserve duty, and approximately 80,000 were placed on unpaid leave.
The employment rate for October dipped to 56.5 percent from 61.1 percent, reflecting the significant impact of the conflict on the workforce.
The bureau noted that due to the war, it needed to make changes to its labor force survey last month, with nearly no interviews taking place the week after the attack, while all subsequent interviews were by phone rather than in person.
It said that it did not survey communities within 7 km of the Gaza Strip and that the survey response rate fell to 55.3 percent from 66.9 percent in September.
Israel's low jobless rate had underpinned economic growth, but with so many people furloughed or out of a job, the economy is expected to contract in the fourth quarter and grow a less-than-expected 2.3 percent in 2023.
