Future of the Labor Market

IDI's Labor Market Reform Program seeks to reform labor relations in Israel. The principal aim of the project is to address the worrying trend of dualization in Israel's labor market, which is exacerbating social tensions and driving up the cost of living. On the one hand, large segments in the Israeli workforce are working under temporary contracts that offer minimal job security, weak social protections and dwindling economic security. Entrenched segments of the workforce hold tenured positions, exhibit low productivity and abuse the tremendous political power at their disposal to prevent necessary reforms.

The goal of the program is to develop actionable policy proposals that will address this major economic and social challenge. In so doing, the program aspires to boost productivity in Israel's public sector, help lower the cost of living in Israel and strengthen public trust in government.

Study on the integration and mobility of individuals from disadvantaged economic backgrounds in the high-tech industry

Over the past decade average real wage of Israeli workers increased by 25% - nevertheless their purchasing power is relatively lower than the OECD average

Former Governor of the Bank of Israel Prof. Karnit Flug, explains what lies behind the recent wave of the rise in prices; what is the main tool for dealing with inflation, and how this relates to wage agreements in the public-sector. She makes is clear that we are not back where we were in the 1980s, but, we must deal with the situation without delay.

Behind the record number of job openings, in an age of full employment and an economy with rapid growth, what steps can the government take to promote the inclusion of workers currently outside the job market and to help businesses?

Prof. Karnit Flug, Vice President of Research and William Davidson Senior Fellow for Economic Policy at the Israel Democracy Institute, as well as the former Governor of the Bank of Israel on Israel’s economy after two years of the global pandemic and political crisis in Israel in conversation with Talia Dekel from the Jerusalem Press Club.

A new study utilizes extensive data to offer a new understanding of the changes the labor market underwent during two years of Covid-19

New IDI survey finds that 250,000 Israelis, who are not working, and not receiving unemployment allowances, might soon be forced to rely on supplemental income support.




The "great resignation" that has swept the US and UK in recent months is one of the symbols of the recovery from the pandemic. Is this trend taking place in Israel too?

Addressing the shortage of hi-tech workers isn't enough. Israel must focus on vocational training & improving productivity in all industries to continue economic growth - economist Daphna Aviram Nitzan explains 

The survey indicates that economic inequality between the Arab and Jewish populations in Israel has increased as a result of the COVID-19 crisis

Insights from 2020 Israel Democracy Institute Surveys and from the World Economic Forum’s Future of Jobs Report 2020

Numbers working from home skyrocketed with the outbreak of the pandemic mainly among white-collar workers, workers with an academic degree, and high-salary workers

A special IDI survey on the economic impact of the COVID crisis finds that worker's financial liquidity has declined sharply with 31% of respondents reporting that they had no liquid funds to support themselves.

One of the very few pieces of good news resulting from the corona crisis is the increase in people working from home (WFH). Unfortunately, workers from lower socioeconomic groups are not benefiting from this change.

An IDI survey examines public opinion on Israelis preferred areas of study and participation when undergoing vocational training during the economic crisis resulting from the coronavirus.

A growing number of countries around the world have realized that vocational training and subsidies for the training period can increase the demand for workers. Israel's government should follow this lead, while at the same time accelerating the pace of development of infrastructure projects, to increase the demand for skilled workers.

The current crisis threatens the heart of the labor market with 400,000 workers between the ages of 35-54 designated as "temporarily absent from work" due to the coronavirus

Reducing the regulatory burden is a key objective for many government ministries -but how can this be achieved while maintaining honest and ethical behaviour

Reframing the eco-system to prepare for Israel’s job market of the future.

In an interview Prof. Yuval Feldman, discusses his new book "The Law of Good People" and sheds light on the connection between good people and corruption.

Behavioral ethics, a growing area within psychology and management literature, demonstrates that an individual’s unethical behavior is demonstrated through self-deception.

The number of vacation days in Israel is among the lowest in the world. Research by Prof. Yotam Margalit presents a new model which will ensure a minimum of 18 vacation days for each worker.


In recent years we have seen one Prime Minister, several ministers and numerous mayors charged and convicted on corruption. But most people enter politics for idealistic reasons and with good intentions. So what went wrong? 

Our Democracy Index shows that while Israel’s citizens love their country and are optimistic about its future, they feel a lack of confidence about their personal futures.

"In order to change this trend, we must increase the use of technological tools and behavioral economics."

For Israel's economy to grow, significant investment in building a strong and effective infrastructure for occupational training and reemployment is critical.