foreign workers in israel (or how a country became addicted to cheap foreign labor) presented by...
TRANSCRIPT
Foreign Workers in Israel(or how a country became addicted to cheap foreign labor)
Presented by Eliahu Ben Moshe
The Israeli context
• Young, fast growing, immigration country• Rapid economic development and socio-economic
structural changes• Political changes in the context of the Israeli-
Palestinian conflict
Demography
• Population size: 7.3 million• 3.5 million Jewish immigrants, the last million
arrived in last 15 years (mainly from Eastern Europe)
• Multi ethnic composition: 20% Arab-Palestinians, 80% Jews (55% from Europe, 45% from Asia & Africa)
• Population growth ~ 2% per year• High fertility: TFR = 2.9 births per woman• Low mortality: exp of life 78.5/88.2; IMR 4.0/1,000 • Young population: 37% under 20, 10% over 65
Economy (in 2007)• (Modest) high-income economy:
per capita GDP 26,000$ US ppp (WB, 2007)• Rapid economic growth ~ 5% per year• Low unemployment rate < 7% BUT
– low LF participation rate < 57% (15+)– high proportion working part time (26%)
• Stratified Labor market: Arabs and Non-European Jews highly concentrated in low skill occupations
• High proportions of foreign workers > 8% of LF
Employment rates 15-64, 2005, Source: OECD and ICBS
0 10 20 30 40 50 60 70 80 90
IcelandSwitzerland
DenmarkNorway
New ZealandSweden
United KingdomCanada
AustraliaUnited States
NetherlandsJ apan
AustriaFinland
PortugalIrelandBrazil
SloveniaGermany
Czech RepublicSpainKorea
LuxembourgFrance
BelgiumGreeceMexicoIsrael
Slovak RepublicItaly
HungaryPolandTurkey
OECD totalEU 15 total
Chronology of addiction to cheap foreign labor
The case of Israel
Graph 1: Non-citizen Palestinians from administered territories working in Israel, annual averages, 1970-2007, thousands
Source: ICBS (2007 data is provisional)
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
Palestinian workers
First entrance of Non-citizen Palestinian Workers (PW) from administered territories
PW became 6% of the work force reaching 100,000+ (7%) by 1987
PW numbers reduced following 1st civil uprising
PW numbers halved following 2nd civil uprising
1 million Jewish immigrantsduring 1990-2000
Graph 2: Non-citizen Palestinian and Foreign Workers with work permits, annual averages, 1970-2007, thousands
Source: ICBS (2007 data is provisional)
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
Palestinian workers FW w permits
First entrance of Foreign Workers (FW) with permits
First entrance of Non-citizen Palestinian Workers (PW) from administered territories
PW became 6% of the work force reaching 100,000+ (7%) by 1989
PW numbers reduced following 1st civil uprising
PW numbers halved following 2nd civil uprising
1 million Jewish immigrantsduring 1990-2000
Graph 3: Non-citizen Palestinian and Foreign Workers (with and without work permits), annual averages, 1970-2007, thousands
Source: ICBS (2007 data is provisional)
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Palestinian workers FW w permits FW w/o permits
Undocumented migration > 50% of foreign workers
First entrance of Foreign Workers (FW) with permits
Permanent FW community: ~ 100,000 persons (inc. families with children)
Undocumented FW numbers reduced but still ~ 50% of total FW
Average annual number of FW with permits: 95,000
1 million Jewish immigrantsduring 1990-2000
Graph 2: Percentage of non Israeli citizens (out of employed): Palestinian and Foreign Workers (with and without work permits), and general unemployment rates, annual averages, 1970-2007
Source: ICBS (2007 data is provisional)
0%
2%
4%
6%
8%
10%
12%
14%
Palestinians FW with permit FW without permit unemployment rates
1 million Jewish immigrantsduring 1990-2000
Factors involved in the process
• Structural SEC change - movement from welfare state to workfare state (neo-liberal) economy, combined with strong interests to reduce labor costs
• Political change: Oslo agreement and the separation from the Palestinians combined with Palestinians civil uprisings (Intifada’s)
• One million Immigration wave creating a strong increase in housing demand
Economic Consequences
• It is claimed that they contribute positively to economic growth and, indirectly, to general welfare, but at a price:• Negative effect on wages in the lowest rank of
the labor market• Negative effect on employment rates of locals,
especially in above-mentioned jobs• All that increases economic and social
inequality among Israelis
Social Consequences
• A new community developed: – Extremely heterogenic (many countries of
origin)– An Invisible social group without legal rights
and representation in the public and political spheres, that is victim of exploitation by unscrupulous employers
– It already is a social problem that might grow larger in the future
Some possible lessons
• Political factors both internally and internationally seem to play a decisive role in he process
• Once initiated it is extremely hard to stop it: the economy becomes dependent on cheap foreign labor,
• Undocumented migration seems to be an integral part of the labor force migration process
• An important number of FW will remain permanently in the country, forming new social group/s that have the potential to create important social problems
Many thanks for your attention