MAY 2011

TEVET EMPLOYMENT INITIATIVES:

STRENGTHENING ISRAELS FUTURE
Ending the Cycle of Poverty for the Chronically Unemployed

Prepared for:
___________________________________
PROPOSAL | ISRAEL
EXECUTIVE SUMMARY
Israels Poorest Communities

Israel has the highest rate of poverty and non-participation in the workforce among OECD
countries. Many of these 750,000 chronically unemployed individuals come from within Israels
marginalized populations namely the Arab and Haredi or Ultra-Orthodox communities who,
due to deep-rooted social and cultural barriers, are unable to find gainful employment.

In partnership with the Government of Israel, JDC, has launched several Employment Initiatives
to help chronically unemployed Arabs and Haredim overcome the barriers to employment.

JDC-TEVETs Haredi Employment Initiatives JDCs Haredi Employment programs have already
guided more than 17,000 Haredim into employment since 2006, and are now reaching more
than 7,000 individuals annually.

Programs include technical training in specially designed Haredi units in the Israeli Army, one-
stop Haredi job centers, career training for young women within Haredi seminaries, and
academic programs for Haredim in Israeli universities.

Participants have achieved positions in programming, electrical engineering, quality assurance,

and sales for Iscar, Celcom, Matrix, Teva, Electra, Bezeq, Israel Aircraft Industries and others.

JDC-TEVETs Arab Employment Initiatives JDC seeks to specifically target Arab-Israeli women,
afflicted with the highest rate of unemployment in Israel 79%. Rhihadiya Women of Valor
provides 13 Israeli-Arab communities with job centers for women, assisting 360 Israeli-Arab
women to break out of extreme poverty each year. JDC plans to open 36 additional locations over
the next three years.

After undergoing comprehensive job preparation workshops, Rhihadiya participants are assisted
in finding appropriate employment. Afterwards, JDC conducts follow up to ensure each womans
smooth transition into the workplace while encouraging continued studies to assist in career
advancement.

Participants have achieved entry level positions in childcare, eldercare, administrating

matriculation examinations, office administration, retail sales and food services.

JDC respectfully requests a gift of $XXXXX from the _________ to fund Haredi Employment
and Rhihadiya. Support will match government funding for many critical aspects of
management and implementation of Haredi Employment as well as Rhihadiya in one Arab-Israeli
city. Alternatively, funding can be used exclusively to support three different Rhihadiya centers.
ICEJs assistance will greatly help end the cycle of poverty among Israels weakest populations.

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INTRODUCTION
Israels Uncertain Future

Israel is facing a growing problem. Despite one of the worlds most stable economies, a highly
successful and innovative high-tech industry, and three times as many Nobel Prizes in science in
the last decade than any other country, Israel is nevertheless battling significant unemployment
and poverty. According to the Taub Center for Social Policy Studies in Israels 2010 bulletin, Israel
has the highest rate of poverty and non-participation in the workforce among OECD nations
(including Spain and Turkey), with more than 750,000 chronically unemployed individuals. The
majority of these individuals come from within Israels minority and fringe populations.

Massive Chronic Unemployment among Arab & Ultra-Orthodox Israelis

The Arab and Ultra-Orthodox or Haredi sectors are the two weakest sectors of Israeli society.
They are also the two fastest growing communities in the country today. Both of these
communities have high chronic unemployment and poverty, soaring birth rates, and low levels
of secular education.

According to the most recent studies, 27% of Arab-Israeli men, 79% of Arab-Israeli women, and
55% of Haredi men are chronically unemployed because of deep-rooted social and cultural
barriers. Dependency on government handouts has become an acceptable way of life for them.

Todays Minority, Tomorrows Majority

The most troubling fact is that these chronically unemployed and poor minorities will soon make
up the majority in Israeli society putting impossible strains on government welfare programs
and the economy. According to current projections by 2040, 78% of primary school children will
be Haredi or Arab. These children represent Israels future. If immediate changes dont take
place, the nations future generations wont be able to sustain the economic successes and
growing industry that Israel has forged in its six decades of existence. As the Taub Centers
Executive Director Professor Danny Ben David said, "We're on trajectories that are not
sustainable."

Furthermore, as the State of Israel seeks to promote good will with the International Community
and in particular the Arab nations of the region, its efforts to ensure the welfare and equal
opportunity for its minority citizens will positively enhance its reputation as a nation firmly
guided by democracy, equality and opportunity for all its citizens.

Israels ability to address the needs of its struggling populations will greatly affect the
countrys future. Will Israel forge ahead or founder as a result of weakened communities?

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BACKGROUND
Two Diverse Cultures

The Haredi Community Preserving the Tradition

Today, Haredim in Israel number between 650,000 to 800,000 - 60% of whom live below the
poverty line. Thirty years ago, only 21% of Haredi men excluded themselves from the
workforce. Today that number is higher than 55%. Based on their current annual growth rate of
4.5%, the Haredi population will surpass one million by 2025, and by 2059 will comprise one-
third of the population of the country placing an untenable strain on government welfare.

Despite the bleak statistics, the Haredi community is in a unique position to resolve its chronic
unemployment. Not many communities are welfare-dependent, difficult to employ, have large
families (average of seven children) -- and yet are trained from youth to develop a high level of
analytical ability, a devotion to language and scholarship, and live an extremely disciplined way
of life. Israel's Haredim have an inherent potential for contributing to Israel through gainful
livelihoodsyet it is not being realized due to a number of cultural and societal factors.

The Haredi community values Torah scholarship, piety, acts of charity, and raising large families
instilled with these values and not career advancement for its own sake. In the yeshiva
educational system, boys are raised to aspire to a life of full-time Torah learning, leaving little
room for such skills as math, English, computers, or vocational training. Community supported
kollels (learning institutions) provide married men with meager stipends that cover a fraction of
their cost of living . Relying on charity, and in some cases welfare, is an acceptable way of life
and mothers are often the main bread winners.

Girls are raised to become full-time mothers, while working on the side to support their
husbands studies. At best, Haredi women's seminaries prepare their students to work in the
over-saturated, underpaid profession of school teaching, yet less than 10% find employment in
their field.

Despite their humble existence, Haredi families prefer a life of tradition and spirituality to
material comforts, however, as their families and their expenses grow, this very modest lifestyle
is no longer viable and the social strains that accompany poverty are now being felt across all
Haredi communities. Unfortunately their unique cultural and religious sensitivities and lack of
educational credentials and experience often preclude them from taking advantage of existing
public employment services as well as from efficiently maneuvering the modern job market.

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The Israeli-Arab Community An Untapped Resource

A disproportionate number of Israel's impoverished citizens are Arabs, comprising one-third of

the poor, despite the fact that they comprise only one-fifth of the total population. Nonetheless,
Arab employment rates in Israel, in addition to per capita income and hourly wages, are lower
than that of the rest of the countrys population. In 2007, the hourly wage of Arab employees
amounted to only 70% of that of Jewish employees.

Encouraging and developing employment opportunities among the 1.5 million Arabs in the
Israeli workface are a necessary and important challenge for Israel, however there are a number
of barriers that make this difficult.

One major impediment to Arab employment is the fact that many Arabs lack years of basic
education, making anything other than menial employment impossible. In 2008, 43% of the
Arab-Israeli population 15 years and older had only up to ten years of schooling, in comparison
to 16% of Jews who had up to ten years of schooling.

Furthermore, Arabs who do possess academic degrees, often face discrimination in the
workforce, making them dependent on the limited employment opportunities within the local
community. At the same time, many manufacturing industries (such as textiles) that traditionally
employed Arab-Israelis have closed down their local operations, resulting in mass
unemployment. Additionally, competition from cheap foreign labor seriously limits jobs for
Arab-Israeli men who were employed in agriculture and construction.

Less than one-quarter of Arab-Israeli women currently participate in the workforce, a primary
source of poverty among Arab-Israeli families. Raising large families makes it difficult for Arab
women to work and cultural mores generally discourage women from working outside their
village. This limits their employment opportunities to crafts and local small businesses.

A recent study found that 43% of unemployed Arab-Israeli women are prepared to accept
employment immediately if given the opportunity. If the rate of those willing to work is
combined with the actual employment rate of Arab women (about 21%), the employment rate
will be similar to that of Jewish women.

Without employment services that cater specifically to these two minority communities, there
is little hope of ever ending the massive cycle of poverty in Israel.

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AN END TO POVERTY
In order to combat this serious situation, JDC, in partnership with the Government of Israel, has
launched several initiatives to help chronically unemployed Arabs and Haredim overcome the
barriers to employment and fulfill their potential for financial independence.

Since 2006, the TEVET Employment Initiative has assisted more than 80,0000 chronically
unemployed Israelis to enter the workforce. TEVET programs help bring participants up to par
in soft skills, math and English, and prepare them for daily life in the workplace. Staff members
assist with job placement and then accompany them in their new jobs to ensure long-term
success and career advancement.

JDC-TEVETs Haredi Employment Initiatives

Since TEVETs inception, the number of Haredim assisted into employment and the diversity of
services has vastly expanded and is continuing to grow each year. JDC-TEVET has already helped
more than 17,000 Haredim into employment since 2006, and is now reaching more than 7,000
individuals annually. JDC's employment services and programs are creating systematic change
in Haredi society, by providing access to career opportunities that never before existed.
Graduates of Haredi Initiatives have achieved positions in computer programming, electrical
engineering, quality assurance, and sales for such companies as Iscar, Celcom, Matrix, Teva,
Bank Hapoalim, Electra, Bezeq, Israel Aircraft Industries, and Office Depot.

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The Shachar IDF Employment Program: Service in the Israeli Defense
Forces is one of the most fundamental credentials in the Israeli job
market, offering valuable vocational skills, work experience, and
networking opportunities. Yet, it has been off limits to most Haredim
because life in the army is seen as a secularizing influence. This puts
them at a great disadvantage in the job market while fueling social
tensions.

Together with the IDF, JDC provides Haredi men with a culturally
acceptable way to serve in the IDF. In addition to helping them achieve
gainful employment in the mainstream upon graduation, Project Shachar
also has the ability to break down social barriers and stereotypes that greatly divide Israeli society. To
date, 1,800 Haredim have been recruited into the army through Shachar with 600-800 new recruits each
year.

Career Alternatives: JDC-TEVET provides career training in gainful fields in Haredi women's
seminaries that have traditionally only provided teaching certificates. Programs currently train
young women in hi-tech (software, quality assurance, and programming) as well as interior
design, financial analysis, and para- engineering. Career Alternatives ensures job placement,
often placing graduates in group employment schemes so that large numbers of classmates can
work together as a team in the same office or company, easing their transition into the
mainstream workforce. TEVET is currently providing over 1000 young women in 12 of Israels
top religious seminaries throughout the country with the skills and the credentials necessary
to succeed in their field.

Haredi Job Opportunity Centers: Provide eight Haredi communities throughout Israel with a one-stop
address that offers career counseling, workplace skills, job search, and vocational training opportunities
all within a Haredi milieu. The goal of Haredi Job Opportunity Centers is to enable the largest amount of
Haredi men and women to transition into gainful employment as quickly and easily as possible. Haredi Job
Opportunity Centers are assisting 3,000 Haredim annually.

Haredi Academic Centers: In the past, Haredim interested in a career path were unable to acquire
academic degrees because they lacked basic credentials to enter secular study. JDC, in partnership with
colleges and universities, is offering special tracks for Haredim, enabling young men to follow career paths
in logistics, business management, social work, and hi-tech fields. Currently 1,500 Haredi men are
participating in academic study programs annually.

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JDC-TEVETs Arab Employment Initiatives

Arab Employment Initiatives serve over 3,000 unemployed Arab-Israelis each year, a large
percentage of whom achieved employment. Programs include developing a national network of
22 One-Stop Job Centers, assisting local municipalities and rural regional councils to build the
necessary infrastructure to improve employment opportunities, and providing soft skills and job
readiness workshops for Arab university students.

Rihadiya: Promoting Employment for Arab-Israeli Women

Considering that Arab-Israeli women have the highest level of unemployment amongst all under
privileged groups by far, JDC founded the Rihadiya (Women of Valor) program to help Arab-
Israeli women with 8-10 years of education or less to achieve employment and break out of
extreme poverty. The integration of Arab-Israeli women into the workforce will not only improve
the standard of living for Arab households, it will also lead to a more productive and equitable
Israeli economy in the coming years.

Rihadiya participants undergo comprehensive job preparation workshops, which address

important topics such as psychological readiness for work, interview preparation, resolving
family conflicts, and time management. After completion of these courses, women are more
than twice as likely to find employment.

Program staff helps each individual find appropriate employment, while organizing childcare to
ensure that this issue does not become a barrier. Acting as mentors, they follow up to ensure
each womans smooth transition into the workplace. The program seeks placement in jobs that
offer both a degree of status and a salary above the minimum wage, such as kindergarten aides.

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 JDC is now developing models for career advancement paths in
an effort to help women pursue employment opportunities
with greater potential for growth. Accordingly, staff members
encourage and guide the women toward completing their high
school education, obtaining vocational training, strengthening
their Hebrew and English to allow them to work outside of the
Arab sector, and closing the digital gap to provide them access
to higher quality employment.

Once participants are fully employed, local Rihadya coordinators

organize 'Job Clubs' where women can meet regularly to discuss
relevant work issues. The Clubs reinforce important
communication skills and provide guidance for women seeking
promotions. Equipped with these essential skills, women can smoothly and successfully transition
into the workplace.

Rihadiya currently operates in 13 locations across Israel reaching 360 Arab women each year.
TEVET has achieved unprecedented success in job placement, finding positions for 53% of
participants a number that is increasing each year as the program is customized to better serve
the needs of the community. Program participants are working in diverse entry level positions,
in childcare, eldercare, administrating matriculation examinations, office administration, retail
sales and food services.

Rihadiyas success with minority women has been recognized, and the Ministry of Social Affairs
has assumed responsibility for program implementation. In addition, the Prime Ministers office
of economic development in the Arab sector is helping expand the program to additional
minority communities. In cooperation with the Government of Israel and local municipalities, JDC
plans to open 36 additional locations over the next three years, as recommended by the recent
Trachtenberg commission.

Support for this program will empower Arab-Israeli women to better their lives and ensure they
have the necessary skills, networks and resources to succeed.

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FUNDING NEEDED
JDC respectfully requests a gift of $XXXXX from the ____________________ to help support
TEVET Employment Initiatives in 2012.

ICEJs generous donation of $XXXXX can be divided in two ways:

1. $XXXXX of ICEJ funding will help JDC match government funding for Haredi programming
including Career Alternatives, Haredi Job Opportunity Centers, Haredi Academic Centers,
and Shachar IDF Employment; $XXXX will be utilized to fund critical program components
for Rhihadiya in the one Israeli-Arab city, including staff training, private tutoring and
employment seminars, program evaluation.

2. The entire sum of $XXXXX will be used to fund three separate Rhihadiya centers in the
cities of Haifa, Kalansuwa, Daburiya, or Ar'ara, covering all essential aspects of the
program.

ICEJs generous assistance will help thousands of Israels most vulnerable citizens break out of
the cycle of poverty. In addition to providing a brighter future for Israels Arab and Haredi
communities, ICEJ will help pave the way for an economically stable future for the nation of
Israel as a whole.

JDC-TEVETs Minority Employment Initiatives

Number of Clients Served:
Organization
Career Alternatives
Haredi Job Opportunity
Centers
Haredi Academic Centers
Shachar IDF Employment
Rhihadiya
Description Number per Year
Provides Haredi young women in twelve
1,000 Haredi women
seminaries with career training in lucrative fields.
Provides eight Haredi communities throughout 3,000 Haredi men and
Israel with a one-stop address for employment. women
Offers Haredi men academic programs in religious
1,500 Haredi men
environments.
Recruits Haredim into specially designed units in Over 1,200 Haredi men serve
the Israeli army, providing them with on-the-job at any given time with 600-
career training. 800 new recruits each year
Provides 13 Israeli-Arab communities with one-
360 Israeli-Arab women
stop job centers for women.

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ABOUT JDC
The American Jewish Joint Distribution Committee (JDC) is the worlds leading Jewish
humanitarian assistance organization. JDC works in more than 70 countries and in Israel to
alleviate hunger and hardship, rescue Jews in danger, create lasting connections to Jewish life,
and provide immediate relief and long-term development support for victims of natural and
man-made disasters.

The American Jewish Joint Distribution Committee, Inc.

711 Third Avenue, New York, NY 10017-4014
Tel: (212) 687-6200
Fax: (212) 370-5467
www.jdc.org

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