The latest layoffs at high-tech, low technology, and food companies have aroused speculation about a possible wave of job losses across the economy because of the slowdown. The Ministry of Industry, Trade and Labor reported back in April that job market growth was slowing and in May, the leading employment agency, Manpower Israel Ltd., reported a 0.3% drop in demand for workers during the first quarter.
Danel (Adir Yeoshua) Ltd. (TASE:DANE) yesterday reported a 20% drop in demand for workers in June 2008, compared with June 2007. Until now, placement agencies have avoided stating explicitly that there was job stress, but Danel has broken the mold. "The slowdown in the Israeli economy is already here," it said yesterday. The company attributes the drop in demand for workers to the economic environment and the shekel's appreciation against the dollar. It can be assumed that the downward trend will intensify.
Danel reports that demand for workers in industry, which is suffering particularly hard from the low shekel-dollar exchange rate, amounted to 11.9% of total demand for workers in June compared with 22% in the corresponding month
In contrast, placement agencies Ortal and ORS told "Globes" that there was double-digit growth in demand for workers.
Published by Globes [online], Israel business news - www.globes-online.com - on July 8, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008