A new and more precise method of identifying the Haredi population was developed, enabling a deeper analysis as well as a more comprehensive picture of employment and education patterns. The findings point to a significant positive effect of formal education on the employment rates and wage levels of Haredi men and women. Paradoxically, however, in recent decades there has been a gradual decline in formal education rates in this sector. An in-depth examination of the Haredi labor market reveals several irregularities concerning the supply and demand for manpower. Among Haredi men and women, there is both a considerable over-supply of manpower in the field of education and a lack of the tools and training that are necessary for integration in other fields. These trends coincided with a sharp rise in the rate of Haredi men studying in yeshivas, and in their average length of study. All of this indicates a gradual transition from the labor market to the world of Torah study. Entrenchment of these patterns makes the return to the labor market a significant challenge.
This paper appears in the Center’s annual publication State of the Nation Report – Society, Economy and Policy 2013.