The average gross monthly salary of Israeli employees was NIS 8,994 in August 2012, and there were 3.11 million salaried employees, the Central Bureau of Statistics reported today.
The average salary rose by an annualized 3.9% in current prices in June-August, after rising by an annualized 3.7% in March-May. The average salary rose by an annualized 3% in constant prices in June-August, after rising by an annualized 2.1% in March-May. The purchasing power of employees rose, except for community services employees, who saw their purchasing power fall by 2%.
Although the Central Bureau of Statistics data show positive salary and employment trends, despite the worsening economic slowdown, it is important to note that the labor market lags behind changes in the business cycle.
The construction industry saw the biggest increase in the average salary in real terms: up by an annualized 5% in June-August after rising by an annualized 4.2% in the three preceding months. But the increase is because of a 2.5% drop in the number of employees in the industry (which has apparently boosted salaries), suggesting a drop in housing starts. This is supported by other Central Bureau of Statistics data and suggest that the housing shortage will continue, sending home prices higher.
Published by Globes [online], Israel business news - www.globes-online.com - on November 6, 2012
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