Israel’s Flug calls for higher-quality labour market

Country is close to full employment but must do more to improve labour market conditions, governor says

Karnit Flug

Israel is operating at close to full employment but can still do more to improve labour market outcomes, according to Bank of Israel governor Karnit Flug.

Speaking at the launch of the central bank’s 2017 annual report, Flug said economic strength in recent years had helped drive employment close to its theoretical maximum level, and wages have also risen.

But the central bank’s research implies the distribution of jobs is not geographically even, with “peripheral districts” suffering from

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