MAY 2011

TEVET EMPLOYMENT INITIATIVES:

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

Prepared for:
___________________________________
INSERT TITLE OF DOCUMENT HERE PROPOSAL | ISRAEL2
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.

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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.

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

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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?
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

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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.

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.

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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

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such companies as Iscar, Celcom, Matrix, Teva, Bank Hapoalim, Electra, Bezeq,
Israel Aircraft Industries, and Office Depot.

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.

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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.

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

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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.

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.

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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.

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

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

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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