What's Happening?
A new report reveals that over a quarter of self-employed families in Israel live below the poverty line, with poverty rates increasing from 25.7% in 2023 to 26.6% in 2024. The study, conducted by Dr. Robbie Nathanson for the Self-Employed Forum of the Histadrut,
indicates that households relying heavily on self-employment income face a higher risk of poverty compared to those with salaried income. Child poverty in these households is notably higher, with a 10.5 percentage point gap compared to salaried households. The report also highlights the limited effectiveness of government aid in reducing poverty among the self-employed.
Why It's Important?
The findings underscore the economic vulnerability of self-employed individuals, who often lack the financial safety nets available to salaried workers. This situation poses significant challenges for economic policy, as self-employed individuals are crucial to economic growth and innovation. The disparity in poverty rates suggests a need for targeted interventions to support this sector, such as improved access to financial resources, enhanced social safety nets, and policies that address the unique risks faced by self-employed workers.
What's Next?
The report may prompt discussions on policy reforms to better support self-employed individuals, including potential changes to social security systems and financial aid programs. Stakeholders, including government agencies and business associations, may need to explore strategies to enhance the economic resilience of self-employed workers. This could involve developing tailored financial products, providing business development support, and advocating for policy changes that address the specific needs of the self-employed sector.
