How has the Iran war impacted Israel’s labor market?

Women make up 60% of new unemployment claims in Israel, many of them mothers of young children.

By World Israel News Staff

The ongoing war with Iran is placing growing strain on Israel’s economy, with widespread school closures forcing many parents out of the workforce.

While much of the economy has reopened — allowing offices and businesses to operate if their employees have access to bomb shelters — the reality on the ground is far more complicated.

With schools and day care centers shuttered across nearly all municipalities, many parents are unable to return to work, regardless of whether their workplaces are technically open.

In response, Finance Minister Bezalel Smotrich introduced a plan that would allow parents with children under the age of 14 to take leave from their jobs and receive unemployment benefits for the duration of the war, enabling them to care for their children.

At the same time, many businesses have placed employees on unpaid leave as economic activity slows sharply amid the ongoing conflict.

According to Israel’s Employment Service — a government agency that assists job seekers, tracks labor market trends, and administers unemployment benefits — more than 140,000 Israelis have registered for unemployment benefits since the outbreak of the war in late February.

Women make up the majority of those affected, accounting for 60% of all applicants. A deeper analysis by the Employment Service found that 40% of new unemployment claims are from mothers with children under the age of 18.

Although some of these women may have previously worked remotely, the closure of schools has made even work-from-home arrangements increasingly unmanageable.

“Even in the era of remote work, mothers bear the heaviest employment cost during emergencies,” said Inbal Mashash, director General of the Employment Service.

“The data require a systemic perspective and the provision of supportive solutions for working parents,” she added, pledging that the Employment Service will continue to “assist job seekers in navigating this challenging period.”