Israel job crisis deepens as unemployment jumps to more than 16 percent
Israel’s labour market is under mounting strain as its wars with Iran and Lebanon disrupt the economy, pushing broad unemployment to 16.2 percent in March, according to Haaretz.
The figure represents about 750,000 people and marks the highest level since the COVID-19 lockdowns in early 2020. By comparison, unemployment stood at nearly 10 percent after October 7, 2023, and during the 12-day war with Iran in June 2025.
The broader measure captures more than standard joblessness. It includes workers temporarily absent due to economic disruption, particularly those furloughed as the war forces businesses and schools to shut down.
The scale of the crisis is stark. Approximately 20,000 people reported being out of work for economic reasons in January. By March, that number surged to roughly 600,000, reflecting the widespread shutdown of economic activity.
