Jeruslaem – UK Businessman’s Program Could Boost Haredi Employment In Israel

Jerusalem –  A businessman and investor who pioneered a program that finances rehabilitation for repeat criminal offenders in the U.K. is now using his idea to increase the employment of Haredi Jews in Israel.

The Times of Israel (http://bit.ly/1yuRskj) reports Sir Ronald Cohen, founder of venture capital group Apax Partners, instilled the Social Impact Bond (SIB) at Peterborough Prison in 2010 to pay for rehab services. Services are covered by private investors who receive dividend payments from accrued longterm savings.

Cohen, an Oxford and Harvard Business School graduate, invented the SIB to contractually tie the government with private investors on a measurable, public investment. Through his Social Finance Israel group, the SIB is trying to increase haredi employment.

According to the Central Bureau of Statistics, of the estimated 950,000 ultra-Orthodox, almost 60 percent live below the poverty line, and only about 45 percent of the adult haredi population works, with an average salary between half to two thirds of their secular counterparts. The majority of haredi households live on government assistance, in addition to contributions from private donors, religious groups or other non-profit organizations.

In Cohen’s proposal, a group of young Haredi men would receive one year of vocational training and job placement services. The private investors would fund the training and placement services, and receive a return on their investments through governmental savings from decreased subsidies.

Shlomi Zidky, director of Social Finance Israel, believes this is good timing to initiate the SIB since Haredi employment in the ultra-Orthodox community has grown in the last five years. Employment is starting to also become more accepted in the Haredi community compared to ten years ago, when employment was strictly discouraged. According to the times, rabbis give a “silent nod” to those who need extra income, especially married men with families.

Zidky points out that private money means the government does not carry risk or expense. He says the SIB would be a win-win for everyone involved.

One major hurdle to overcome to make sure the SIB is effective is to work past the resentment between secular and religious camps. Anti-Haredi sentiment could stem from practical aspects such as dress codes for female employees, restricted seating between sexes, differences in educational backgrounds and basic job experience.

Zidky is planning on fostering and nurturing relationship with prospective employers to give the students a positive experience.

Information taken from The Times of Israel