Unofficial figures from the National Insurance Institute indicate 20,000 new applications for unemployment benefits during the first two weeks of March 2009. The numbers so far are more than the total for the entire month in recent months.
A pessimistic scenario sees a wave of layoffs hitting after Passover. One estimate believes that many employers are avoiding layoffs right now, in order to avoid ruining the holiday atmosphere. If the prediction is realized, the unemployment rate could reach 7.5% earlier than previous projections.
The unofficial figures undercut the cautious optimism displayed only yesterday by the Israel National Employment Service, which reported that the number of people laid off declined to 17,830 in February from 19,719 in January. While still high, the Employment Service claimed to see a clear trend: the average monthly increase in newly unemployed people had slowed from 4.5% in August-December 2008 to 3.4% in January and even less in February.
In an effort to cool yesterday's enthusiasm. Employment Service director general Yossi Farhi said, "It is premature to assess whether the increase in unemployment is easing, given the steady increase over the past 11 months." He was apparently right.
Published by Globes [online], Israel business news - www.globes-online.com - on March 19, 2009
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