Demand for labor increases slightly + low housing inventory supports rental price inflation

ISRAEL - In Brief 20 Sep 2023 by Jonathan Katz
Demand for new workers (job vacancies) increased slightly in August by 1% m/m to 119k) following a steady decline since July 2022 (151k). This is the first reversal (albeit modest) in the downward demand for new workers, and this supports our assessment that growth remains fairly steady and the labor market rather tight (unemployment down to 3.1% in August from 3.4% in July due to employment growth) supportive of wage/inflation pressure. This is will be a supportive factor for further monetary tightening, if other conditions (CPI print in Sept, the direction of the shekel) also tip the scales for a rate hike on 23.10 Residential housing completions remained low in Q223 actually declining to 53.7k units from 55.4k in Q123 and 57k in Q422 (in annual terms). This is way below the current demand estimated at around 60k units per year (looking at population growth and new immigrants). Weak housing completions will keep the housing inventory low which will support higher rental prices, measured in the CPI, contributing to inflation. Our estimate for moderating housing rental prices to 3.5% NTM in our inflation forecast of 3.0%, moderating from 6.2% y/y, may be too optimistic.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this or its contents.