Illustration
Photo: Alex Kolomoisky
Report: Global crisis shrunk Israel's middle class
Adva Center says 80,000 households previously defined as middle class now considered lower class; poverty rate up 3% since beginning of decade
The global economic crisis of 2009 deepened the social gaps in Israel, according to a report published by the Adva Center on Sunday.
The report said that some 80,000 households previously defined as middle class are now considered lower class. The percentage of middle class households in Israel declined from 27.1% in 2008 to 26.6% in 2009, while the share of Israel's middle class in the total income declined from 20.7% to 20.5%.
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Since 1988, the middle class has shrunk from 33.0% of all households to 26.6%, while the upper and lower classes expanded during this time.
In 2009 the poverty rate increased to 20.5%, compared with 17.6% at the beginning of the decade. According to the report, 15.2% of Jewish families and 53.5% of Arab families are defined as poor. Among Israel's Jewish population, the highest poverty rates were recorded in the haredi community.
In 2000 about 29% of Israeli workers earned minimum wage or less, as opposed to 33% by the decade's end.
In 2009, the gross average monthly income of eight of the 10 income deciles declined, while the income of the bottom four deciles experienced a sharper decrease than the top 2 declines.
During the years 2000-2009, the share of the bottom four income deciles in the total income declined, from 17.0% to 16.3%, while the share of the top decile grew, from 28.0% to 28.5%, the report said.
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