How much does Haredi draft save the Israeli economy?

Expanding Haredi enlistment could save the Israeli economy NIS 9-14 billion ($2.8-$4.3 billion) annually.

What is the cost of reservist service in Israel?

A month of reservist service costs approximately NIS 38,000 ($11,700).

Will the new Security Service Law boost Haredi enlistment?

The report suggests the proposed law's low targets and weak incentives may not effectively increase Haredi recruitment or reduce costs.

Home / Business and Economy / Haredi Draft: Boost Israel's Economy?

Haredi Draft: Boost Israel's Economy?

11 Dec

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Summary

Enlisting Haredim could save Israel billions annually.
Reservist service costs NIS 38,000 per month.
Current draft law may not meet army needs or reduce costs.

The Israeli economy could gain billions of shekels by increasing the enlistment of Haredi (ultra-Orthodox) individuals into the Israel Defense Forces, a Bank of Israel report indicated on Thursday. This strategic shift offers a more cost-effective approach compared to maintaining reservist forces.

A single month of reservist duty incurs costs of about NIS 38,000 ($11,700). In contrast, conscripting young Haredim is a far more economical option and could potentially incentivize them to enter the civilian workforce, thereby boosting overall economic productivity.

Expanding Haredi enlistment by an estimated 7,500 annually, gradually increasing the force by 20,000, could slash the economic burden from reservists by NIS 9-14 billion ($2.8- $4.3 billion) each year. Nevertheless, the report cautions that the current Security Service Law under consideration by the Knesset features insufficient recruitment targets and weak incentives, which may hinder its effectiveness in meeting military requirements or reducing expenses.