Israeli Social Services at Low

The prestigious Taub Center published its annual survey of Israeli social services on Wednesday, and reported that the scope of services has reached an all-time low. The survey also pointed to a societal problem of chronic unemployment, and a growing gap between the rich and the poor.

According to the report, social service spending has fallen to 16 percent of the GDP and only 51 percent of the government’s budget in 2008 – both all-time lows. The country spent NIS 14,000 to NIS 15,000 per person on social services, whereas in the 1990s it had spent between NIS 16,000 and NIS 17,000 per person.

Expenses for health and education have fallen from NIS 10,500 per person in 2000 to NIS 8,800 per person in 2008. The report also pointed out that only two percent of spending on education and one percent of spending on health are dedicated towards development, a statistic that could point to a slow degradation of the educational and health infrastructure.

While the study indicated that unemployment had dropped sharply since 1997 until the current economic crisis began, it pointed to a new problem of chronic unemployment. According to the survey, the problem is largely among the uneducated and Arab minorities who have lost jobs to foreign workers and illegal Arab workers from Judea and Samaria.

The center also warned that according to several indices economic inequality has grown in Israel in the past few years and is higher than in most Western countries.

The study pointed out that Israel is entering the global financial crisis with a strong economy, but will still no doubt be negatively affected. It suggested that Israel take advantage of the recession by enacting long-term changes to economic and social policies that will ultimately provide far-reaching benefits to society.

The Taub Center is an independent research institute based in Jerusalem that conducts research on socioeconomic conditions in Israel. It is funded by a permanent endowment created by the American Jewish Joint Distribution Committee (JDC) and private donations.