Jerusalem’s population currently numbers almost 700,000, and the city’s area covers 123,000 dunam (30,750 acres), double the area and population of Tel Aviv-Jaffa. The municipality has to provide services to a large, scattered, multi-faceted, and steadily growing population – a population that is demographically, socially, and economically heterogeneous. Jerusalem has a large concentration of non-Jews, who amount to 28% of the total population, a relatively high level of poverty, newly constructed neighborhoods, and a large tourist community. The municipality must expand its services proportionally to the increase in its population, and appropriate special services for the city’s various religious and national communities.
Data shows the city has a high rate of growth from high natural increase, and that people do migrate to the city. However, more people leave Jerusalem, moving to other areas in Israel. Many people move frequently to different places within the city and its external suburbs are growing rapidly. These trends significantly affect the provision and character of municipal services. There is a constant need to increase the volume and geographical range of services to meet the needs of the city’s different communities.
Israel Kimchi of the Jerusalem Institute for Israel Studies says, “Jerusalem has 450,000 Jews, a third of whom are haredi (ultra-orthodox), and over 200,000 Arabs. The most important, long-standing trend is the negative migration balance. The groups that are leaving are mostly young, including many university graduates who choose not to stay after earning their degrees. In the past, they would adapt to the city and continue to live there. The city suffers from a negative image and everybody talks about the ‘haredization’ of the city, which is statistically incorrect. The perceived security situation is also more image than fact. The main reason for this is that the Arab community knows it has something to lose, and therefore hasn’t joined the Intifada.”
Most of the city’s emigrants move to Jerusalem’s suburbs: Mevasseret Yerushalayim, Zur Hadassa. Maaleh Edumim, etc. Many young couples move to Modiin. According to the Jerusalem Institute, employment and housing are the main causes of the migration. The haredi population migrates because of its housing needs, while secular people leave mainly because they have difficulties finding employment in Jerusalem. Haredi people go to Betar Ilit, Kiryat Sefer, and Tel Zion, so the haredi community’s overall population is not growing either.
Jerusalem has a low economic status. Most of the jobs in the city are low-paying public and community service positions. Figures show that most of the city’s working population earn substantially less than workers in Tel Aviv or Haifa. Jerusalem is perceived to be both poor and crowded. Israel’s biggest city is the country’s poorest, a situation caused by the city’s social structure and demographics on one hand, and its employment structure on the other.
City taxes (arnona) are the municipality’s main source of revenue. In 1998, arnona paid for 41% of the municipality’s regular budget, and 46% in 1999. There are two categories of arnona payers: Residential and non-residential. Jerusalem’s arnona revenues are low for three key reasons: the city’s relatively small number of businesses; a high percentage of tax-exempt institutions; and a high percentage of subsidized residents. A highly critical report by the State Comptroller showed that 23% of non-residential arnona units and 26% of residential arnona units received tax breaks in 1998.
The average monthly salary of wage-earners in Jerusalem equals the national average. The average monthly salary in Tel Aviv is 10% higher than in Jerusalem, and in Haifa it is 15% higher. Furthermore, in Jerusalem, 38.3% of wage-earners earn the minimum wage, compared to 35.5% in Tel Aviv and 36.9% in Haifa.
Figures also show that poverty in Jerusalem is considerably higher than in Tel Aviv and Haifa, in terms of families, individuals, and children. Poverty in Jerusalem is concentrated among three sectors: The haredi community; the non-Jewish community; and other communities scattered among the city’s mostly working-class neighborhoods. In 1998, Jerusalem had the second highest number of poor families (27.1%), finishing behind Bnei-Brak (28.5%), and the second highest percentage of people living below the poverty line (33.4%). (Bnei-Brak once again had the highest percentage, 41.9%).
Professor Della Pergola of the Jerusalem Institute says, “Due to high natural growth, the Arab population can reach 40% of the city’s overall population, if the city retains its current boundaries and the population trends continue. This matter sets off alarms among politicians and others. Jerusalem’s image doesn’t encourage young people to migrate to the city. The Institute’s research among people coming to the city shows that a high percentage are religious, who come to Jerusalem for religious motives.”
”In recent years, there have been attempts to orient the city’s employment structure more towards high-tech and technology. Hebrew University, Hadassah Hospital, and other research institutes create potential for these sectors. The crisis affecting the high-tech and tourism sectors dealt Jerusalem a particularly savage blow. The longer the disturbances continue, the more the city’s status will be weakened.”
Published by Israel's Business Arena on 21 May 2001