According to the Bituach Leumi 2013 Poverty Report, there is a sharp increase in the number of Israelis living under the poverty level. The number of poor in Israel ranks alarmingly high among OECD (Organization for Economic Cooperation and Development) member nations.

There are over 1.6 million Israelis are living under the poverty level, including over 750,000 children, states Bituach Leumi in its 2013 Poverty Report released on Tuesday, 24 Kislev 5775. One the one hand the report documents a drop in the number of poor from 2012, but the report also shows a worrisome increase in the number of poor in working families as well as pointing out the level of poverty in Israel is among the highest in developed nations.

According to the report, the number of poor families in 2013 dropped as compared to 2012, from 19.4% to 18.6% respectively. The number of poor individuals dropped from 23.5% in 2012 to 21.8% in 2013.

In numbers, there are 432,600 poor families made up of 1,658,200 people compared to 439,600 poor families made up of 1,754,700 people and 817,200 children in 2012.

Since 2013, an individual is categorized as “poor’ if he earns less than 2,989 NIS monthly; or a couple earning less than 4,783 NIS monthly and families of five people must earn over 9,000 monthly to emerge from the ranks of the poor.

The report explains the cutting of monthly child allowance payments and increasing value added tax to 18% were contributory factors, bringing an additional 90,000 people under the poverty line. Increasing minimum wage and providing more jobs have contributed to bringing more people out of poverty.

The report shows an increase in the number of heads of households out or work, increasing from 66.1% (2012) to 72.9% (2014). We also learn that the number of families in which both husband and wife work now classified as poor continues to increase as well, the so-called ‘working poor’; increasing from 5.5% (2012) to 5.7% (2014). The report explains one explanation might be is that with the increase in the number of people joining the workforce there are more new workers and they earn less.

Among chareidi and Arab families there is an increase of working poor to 24.4% and 21.1% respectively. It is estimated that in 2013 66% of the poor families are living in chronic poverty.

Poverty is down among the elderly, albeit marginally, from 22.7% (2012) to 22.1% (2013). This too may be attributed to more of the elderly working in 2013 than in the previous year.

The Arab sector shows improvement, dropping from 54.3% (2012) to 47.4% (2013), despite the cutting of the monthly child allowance payments by the government. This is attributed to more members of this community joining the workforce, particularly among women, now showing employment of 18%. The report does not include the Bedouin community in the south since it is not participate in the Central Bureau of Statistics census.

Bituach Leumi CEO Prof. Shlomo Mor-Yosef explains that while there is a decline in individual poverty, and Israel has improved its status in the international community, there is a long road ahead. At present, Israel ranks third to last place among OECD nations, sandwiched between the United States and Mexico ranking 18% while the average among OECD nations is 11.1%.

Regarding poverty among children in OECD nations, Israel remains in third to last place after Turkey and Mexico with 23.5% amid an OECD average of 13.5%.

(YWN – Israel Desk, Jerusalem)