Wednesday, January 11, 2012

Israel's unemployment rate falls to all-time low

Israel's unemployment rate fell to 5% of the civilian labor force in October 2011, an all-time low, the Central Bureau of Statistics reported today.

There has been a steady monthly decline of 0.1-0.2% in the unemployment rate since January, falling from 6.2% in January to 5.6% in May and 5% in October 2011.

The figures are surprising, given that economic activity is declining, including by labor-intensive export-oriented manufacturing. However, the unemployment rate is the economic indicator with the longest time-lag in its response to changes in activity.

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