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Poverty Rates Among Immigrants from the former Soviet Union including Others , Israel 2008

Ludmilla Oigenblick, Executive Director, The Association for the Rights of Mixed Families,

29-Oct-08

Israel has highest poverty level in western world. According to the findings released by OECD (2008), poverty in Israel is 2.5 times the average in the developed world. Poverty in Israel remains one of Israel’s most pressing social problems, exacerbated by a continuing process of economic restructuring that includes privatization and the shrinking of the welfare state. The number of Israelis living under the poverty line reached 1.7 million including 805,000 children, or 23.6 percent of the total population of 7.2 million, according to statistics released in October 2008 by the National Insurance Institute. One in every 3 children in Israel live in poverty. "We are witnessing the emergence of two new poverty sectors - the working poor and the new poor," said Yadid (Israeli NGO) Director General Sari Rivkin. The working poor are those who managed to find work at a meager pay dooming them to continued poverty. The new poor in Israel are those who used to belong to the middle class but cannot meet their mortgage payments or buy medication, school books and other items." The gradual cutback in child allowances in Israel, which began in mid-2003, also affected the poverty rate. Children's allowances were slashed three times in 2006, a move which is scheduled to be continued through 2009.
State proposed that two quantitative multi-year goals should be determined - the first goal is to reduce the incidence of poverty among Israeli families; the second goal is to increase the rate of employment between the ages of 25 and 64 .

Total Israeli Population
The Israeli Central Bureau of Statistics (ICBS) data

60% of Israelis living below the poverty line come from the ultra-Orthodox or Israeli-Arab sectors families with four children.

In 2007 the poverty line in monthly income was :

2,028 ILS ($530) per month for a single person
3,244 ILS ($848) per month for a couple
5,191 ILS ($1,357) per month for a family of four

40% of Israelis are working, and staying poor regardless .

Poverty indicators for families with a single wage-earner have risen from 22.6% to 23.9% in 2006.

The number of families with two wage-earners but who still live in poverty rose on 1.1% in 2006 .

The number of those failing to find full-time employment despite their efforts has gone up 9.3% .

The minimum wage in Israel is about $1,000 per month .

Unemployment rate: 7.6%

Immigrant Population and "Others" of 1990 + from the former Soviet Union

In Israel, the 320,000 Others* from the FSU constitute 4 percent of the state’s population. Others account for one third of one million of new immigrants from the former Soviet Union . The percentage of Others in state is roughly equivalent to their share of the national population during the last ten years. At the beginning of 90-s Others consisted 30 percent of immigration flow; from 2000s they consist more than 70 percent of immigration flow from the FSU. However, since 1989, immigration dropped to the lowest number of immigrants from the FSU from 200,000 to 10,000.   

______________________
*In Israel, nationality is registered according religion. Religion is classified as Jews and Others. The group “Jews and Others” includes Jews, Christians who are no Arabs (immigrants from the FSU) and those with no religious classification (who is not Jew according the Jewish Law : father is Jew and mother isn't Jewish) .

The Israeli Central Bureau of Statistics (ICBS) data

The unemployment rate of Others in 2006 immigrated in 1992-1995 was 6.6 percent compared with 8.3 percent of those who came in 1998 + .

Total rate of unemployment among Others was 8.3 percent in 2006

64.7 thousand of Others aged 15 and over are in civilian labour force

Thereof:

49 percent in unskilled, clerical or service jobs

35.6 percent in manufacturing and construction

15.4 percent in academic, managerial and engineering occupations

Gross income per work hour is 30.5 ILS (8,2 USD) for skilled workers

Gross income per work hour is 20.7 ILS (5,5 USD) for unskilled workers

The gross income per hour is 50 percent below the income of natives.

The Association for the Rights of Mixed Families Survey, 2002

During the first two years in Israel unemployment among Others is highest and reaches 90 percent .

The Association for the Rights of Mixed Families Survey, 2008
The wages of Others was 30 percent below the national average in 2006.
Monthly income of Others per person a month

43.7 percent earn > 4,000 ILS (1,100 USD)
44.9 percent earn 4,000 – 7,000 ILS (1,100 – 1,900 USD)
11.4 percent earn < 7,000 ILS ) 1,900 USD)

88.6 percent of Others are employed in occupations which pay extremely low wages through manpower contractors and other forms of outsourcing .

54 percent employed full time usually working 12 hours a day making < 4,000 ILS (1,100 USD)a month

13 percent employed part-time

33 percent in hourly wage jobs

61 percent of Others are not satisfied with their low-income undesirable jobs such as cleaning and guard services.
7 percent of Others are self-employed. Others have twice as lower rates of entrepreneurship — 13 percent of natives, 11 percent of Jewish immigrants.
8 percent of Others are considering to leave Israel.

The low percent of Others considering emigration and self-employed can be explained by their low social capital in the Western countries and in Israel, and they also lack of necessary qualifications and skills.*

*Ludmilla Oigenblick and Alan Kirschenbaum
2002 Tourism and Immigration. Comparative Approaches. Annals of Tourism Research, Vol. 29 (4), pp. 1086-1100.

Infer:

There is no poverty and hunger among Others, however exist inequality, and underemployment. The poor Others are those who work in low-paid, unskilled jobs, cannot meet their mortgage payments, forced to make choices between food and other expenses such as mortgage, rent, medicine, heating and electricity. 90 percent of Others lack carrier advancement, and opportunity to be employed in state government. Their low economic profile is a continuing trend within their lives in Israel based on socioeconomic policies that have guided the country for the last 20 years .

The gradual cutback in child allowances in Israel, which began in mid-2003, also affected the poverty rate of Others. Especially it strikes immigrant children living in single parent homes because every fourth immigrant child lives in a single parent home.

AMF Survey also shows that the staying in Israel don't influence much on well-being and net monthly income of Others. However due to the low social capital and inadequate skills and qualifications only 8 percent of Others are considering the emigration opportunities.



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