​Central

Central government is responsible for:

• Labour law, national strategies and policies;
• Monitoring frameworks;
• Equality and anti-discrimination laws;
• Creating job opportunities based on stable economic and business needs, giving priority to peripheral areas and localities with high unemployment rates;
• Helping develop and secure efficient, profitable and competitive industries in Israel to lead the expedited growth in the Israeli economy;
• Developing Israel's international financial activity, focusing on developing tools to increase exports;
• Expanding economic collaboration and trade relations with countries in the region in order to maximize the relative advantages of each and every country;
• Develop diverse education and technological training, promote Israel's human capital in order to enhance human infrastructure based on the needs of the economy and industries;
• Initiate policies and programs for replacing foreign workers with Israeli ones in the construction, agriculture and industry sectors;
• Initiate policies to integrate and increase employment rates within special populations such as the ultra-orthodox community, minorities, single parents and income support recipients, populations that are difficult to employ, and handicapped and disabled people;
• Promote industrial R&D as a means for developing a rich knowledge-based industry that will foster all of Israel's relative advantages and identify novel, innovative trends in international industries;
• Increase financial competitiveness and prevent damage caused to the economy by cartels and monopolist activity;
• Encourage consumer awareness within the public and maintain fair trade laws that guarantee the wellbeing of the individual and increase competitiveness in the market;
• Tighten enforcement of labor laws in order to guarantee fair salaries and terms of employment;
• Develop funding tools that are external to the budget – Use national budgets wisely to develop incentives that will encourage the capital market to help fund development and industry initiatives.
  
  

Under the 1984 Law on Encouraging Research and Development in Industry 1984 ("the R&D law") the office of the chief scientist at the Ministry of the Economy has the authority to oversee all government support for R&D projects. This law established a structured investment system under which the State can provide funding for up to 50% of a project's costs in exchange for future royalties.[1] Furthermore, the unit works to advance cooperation with foreign and international projects and funds. Israel is a member of a myriad of international funds such as the BIRD Israel-USA foundation (1978), the CIIRDF Canada-Israel foundation (1995), the SIIRD Israel-Singapore foundation (1997), KORIL Korea-Israel (2001) and the European Union’s Eureka Network (2000).

The Regional Development unit at the Ministry of the Economy leads projects and investment in areas of national priority such as the Negev and Galilee. Currently, the main areas under development are projects on renewable energy and natural resources. Although regionally focused, the office is under the direct control of central government and not directly accountable to the regions.[2] The Ministry for Development of the Negev and Galilee also offers regional-oriented R&D investments on a similar basis.[3]

Local

A local authority can initiate employment policy based on urban planning or service provision depending on its capabilities and resources. Usually it must apply for State aid to finance and approve such policy.

The central government funds local small business development centres which specialise in assisting small businesses and entrepreneurs through consultancy work.

In 2006, a cross-government initiative called “Local authority advancing employment, education and community” was launched in order to increase local government responsibility for developing a long-term employment strategy for its citizens. This initiative reflects the local government's traditional role as a grass-root developer, while the central government is in charge of supervision and financing.[1]


[1] ‘Employment Advancement in Local Communities’, JDC Publication (2011), pp. 10-11, available at: http://www.tevet4u.org.il/files/wordocs/madric_rashut.pdf  (HE).

 
[1] D. Kaufman and Y. Marom, ‘Evaluating Programs for International R&D cooperation in Israel ‘, The Jerusalem Institute for Israel Studies (May 2011), pp. 11-12, available at: http://www.taasuka.gov.il/Taasuka/About/  (HE).

[2] Ministry of Economy, Regional Development Center, available at: http://www.moital.gov.il/NR/exeres/E762C6EB-07F9-4758-BB9A-2F05C9915A0D.htm  (EN).

[3] ‘Agricultural and Scientific R&D’, The Ministry for Development of the Negev and the Galilee website, available at: http://www.vpmo.gov.il/Negev/Employment/Pages/PIT5.aspx  (HE).

Responsible ministries/bodies Ministry of Economy and Industry

Sources: Labour Market and Employment Policy in Israel, ETF, 2015