The 2023 poverty report issued by the Israeli National Insurance Institute and reported by the Israeli newspaper Calcalist showed that Israel ranks second among OECD countries in terms of poverty rate, with about 1.98 million people living below the poverty line, including 872.4 thousand children.
Despite the slight decrease in the poverty rate from 20.8% in 2022 to 20.7% in 2023, this percentage is still much higher than the average of OIC countries of 11.6%, which reflects a large gap in social policies.
Clear gap
According to Calcalist, the report believes that the main reason for the continued high rates of poverty in Israel is weak government spending on social welfare.
In 2023, public spending on welfare rose to 16.6% of GDP compared to 15.8% the previous year, but this figure remains well below the OECD average of 22.4%.
For example, in France, 32% of GDP is allocated to social spending, which is twice what Israel allocates.
Poverty disparities between population groups
The report highlights the great disparities between different groups in Israeli society. The poverty rate among Arab families reached 38.4%, while the Haredi families recorded a rate of 33%. As for non-Haredi Jewish families, the poverty rate among them was 14%.
Despite the widespread belief that poverty is concentrated between Arabs and Haredim, the report reveals that 51% of the poor in Israel are non-Haredi Jews, while Arabs constitute 36% and Haredim 13%.
Calcalist states that the child poverty rate remains an alarming 27.9%, which raises concerns about the impact on children’s social and economic development and their future.
Impact of war
The report showed that the recent war greatly affected families, especially those that depend on the income of freelancers. The poverty rate among families headed by independent people – who have a private job or project – increased from 13.3% in 2022 to 13.8% in 2023.
The National Insurance Institute report indicated that government support was not sufficient to compensate these families for their losses, which highlights the necessity of designing effective support policies.
In this context, Zvikah Cohen, Acting Director General of the Foundation, said in his comment on the report: “The report clearly shows the urgent need to provide support and aid to vulnerable groups. The economic impact of the war will continue for years to come, and our policies must reflect this reality.”
Nitzah Kasir, Deputy Director General for Research at the National Insurance Institute, stressed the importance of adopting comprehensive policies to support vulnerable groups, and said: “Aid must be granted not only in times of crisis, but as part of a sustainable policy in line with the standards of OIC countries.”
For his part, the Executive Director of the “Pethon Live” organization, Eli Cohen, stated, “Requests for assistance increased by 23% during the year 2024, which reflects an increasing deterioration in the economic conditions of families.”
