THE COVID-19 CRISIS AND THE LABOR MARKET IN ISRAEL

The Covid-19 pandemic has badly harmed the labor market in Israel, a direct result of increased demand for work due to the social distancing limitations, a drop in local demands – due to reduction in households income and consumers concerns of being exposed to the virus – and decreased demands to import. Increased uncertainty, including employment insecurity, and the harm to households wealth worsened the gloomy situation of the labor market since individuals have decreased their consumption even further. In short, the sharp decline in business activity triggered many of them to reduce the number of employees and cut wages.