ANALYZING THE SUCCESS FACTORS OF THE ISRAEL EMPLOYMENT SERVICE PLACEMENT PROGRAM

Abstract

Unemployment is one of the world’s most challenging tasks to solve, with 6.3-6.5% of the world’s population unemployed in 2021 (4.6% unemployment in Israel). Job placement programs for the unemployed can reduce the duration of unemployment and government unemployment expenditures. This paper explores one of the Israel Employment Service programs for 2016-2019, based on 56,000 job seekers and 82 job seeker profiles. The main findings of the study are: (1) there is  no difference between good placement of job seekers from the Arab sector (49%) compared to job seekers from the other population groups (51%); (2) the longer a job seeker remains in the program, the lower is the probability of their returning to the labor market. Moreover, the increased number of activities the job seekers are engaged in can negatively affect their chances of finding a job; (3) socioeconomic factors such as education, disability, religion, and number of children affect job placement.