March 4, 2026

Self-employed households in Israel face high poverty rates, study reveals

Self-employed households in Israel face high poverty rates, study reveals

A new report by the Histadrut reveals that over 26% of self-employed families in Israel live below the poverty line, highlighting a severe economic challenge where reliance on self-employment significantly increases the risk of poverty. This group of workers, often solo freelancers in high-risk sectors like hospitality and education, struggles with inadequate state aid, as government assistance reduces poverty among self-employed households by only about 30%, compared to approximately 36% for salaried households. Prolonged conflicts and recovery from past crises have further exacerbated financial instability in these sectors, prompting calls for policy reforms and stronger social safety nets tailored specifically for self-employed individuals in Israel’s upcoming state budget.

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