ECONOMIC SURVEY - 08-Sep-96

8 September 1996

(COMMUNICATED BY GPO ECONOMICS DESK)

MACRO-ECONOMIC SECTOR:

* UNEMPLOYMENT WAS 6% DURING SECOND QUARTER OF 1996.
The number of unemployed in the total work force was 6.0% during the second quarter of 1996, as compared to 6.3% during the corresponding period in 1995, the Central Bureau of Statistics reported. The work force itself rose by 3% during the second quarter to 2.154 million people. The number of unemployed women came to 7.2%, during the second quarter, as compared to 7.6% during the first quarter, while the number of unemployed men was 5.9% during the second quarter.
Central Bureau of Statistics - David Neumann, 972-2-6553400

GOVERNMENT SECTOR

* DEPORTING OF ILLEGAL FOREIGN WORKERS TO COST NIS 58 MILLION ANNUALLY.
The annual cost of deporting 2,000 foreign workers illegally residing in Israel every month is estimated to be approximately NIS 52-58 million, according to government assessments. The cost of a one-way ticket for the workers will average $750, which the government will have to incur if the worker or his/her employer cannot pay this. The cost of distributing magnetic cards to all legal foreign workers will come to NIS 900,000 annually. If the pace of deportations is only 1,000 workers monthly, the cost of the program will be NIS 34-40 million. (Yediot Ahronot, 4.9.96, p.C1)

* COMMITTEE TO EXAMINE SHORTAGE OF HIGH LEVEL SCIENTIFIC AND TECHNOLOGICAL GRADUATES.
At its meeting on 06.09.96, the cabinet decided to appoint a directors- general committee to find and implement solutions for the short, medium, and long-term problem of a shortage of high level scientific and technological graduates which is a factor in delaying the further development of Israel's high tech industries.
Prime Minister's Media Advisor - Shai Bazak, 972-2-705546

* TWO TECHNOLOGICAL INCUBATOR PROJECTS WIN EXCELLENCE PRIZE.
Two projects developed in technological incubators will be awarded the 1995 Prize of Excellence from Industry and Trade Minister Natan Sharansky on 10.09.96. One project Equipment for Optical and Ophthalmic Lense Inspection was developed by Visionix in the Patir Incubator in Jerusalem, and has reached sales of $1.5 million. The other project Electroluminescent Fibers was developed by Elam Electroluminescent Industries in the Har Hahotzvim Incubator, also in Jerusalem. Technological incubators, 27 in number, were established in order to promote entrepreneurial skills and research and development efforts for new immigrants, primarily from the CIS.
MATIMOP - Rina Pridor, 972-3-5103941

FOREIGN TRADE:

* VISHAY DIMONA TO SUPPLY COMPONENTS TO SONY, SANYO, MATSUSHITA.
Vishay Internationals' plant in Dimona will supply electronic components for some of the world's largest lithium battery producers located in the Far East: Sanyo, Sony, and Matsushita, Vishay's President, Dr. Felix Zandman, announced. Until now, these components had been produced by Vishay's U.S. plants, but with an increase in demand for the products, Vishay decided to produce the components in Israel. (Globes, 4.9.96, p.3)

DEFENSE INDUSTRIES SECTOR:

* THAILAND TO PURCHASE MINI-UNMANNED AERIAL VEHICLES.
The Thailand Ministry of Defense has decide to purchase Israel Aircraft Industries' 'Searcher' mini-UAV for the Thai military. On 4.9.96, the Thai government officially announced that it would purchase a number of the Searchers, worth $11.5 million. (Globes, 4.9.96, p.7)

TOURISM SECTOR:

* MARKETING COMMISSION FOR FOREIGN TOURISM ESTABLISHED.
The Finance and Tourism Ministries, along with the Israel Hotels Association have established a committee to promote the marketing of tourism in Israel abroad. The committee will initiate some of these marketing schemes, as well as push for more funds to be made available for the efforts. The Tourism Ministry's current foreign marketing budget is NIS 106 million.
Finance Ministry - Eli Yosef, 972-2-317201

AVIATION INDUSTRY:

* JTM ENTREPOSE OFFERS TO CONDUCT FEASIBILTY STUDY FOR SECOND INTERNATIONAL AIRPORT.
During a meeting between Finance Minister Dan Meridor and executives from JTM Enterpose, the French airport infrastructure firm, JTM executives proposed that they conduct a feasibility study at their own expense, on building a second international airport at Netavim in the Negev. Meridor thanked the JTM executives, adding that a committee would publish a tender for all aspects of building a second international airport.
Finance Ministry - Eli Yosef, 972-2-317201

PEACE ECONOMICS: