wisconsin plan

The Wisconsin Program 2005-2009

Fiasco of a program intended to get the chronically unemployed back into the labour market

Marking the 4th anniversary of the Wisconsin Program in Israel, Sever Plocker, Israel's most renowned economic commentator, criticized its "success" in an editorial published on May 23, in Yediot Aharonot. The program was launched in four trial areas: Jerusalem, Nazareth, Hadera and Ashkelon.

Four franchisees were selected in a public tender to operate regional employment centers in the respective areas. The original program was heavily criticized for a number of reasons, mainly due to the fact that the franchisees were rewarded according to the number of persons detracted from the list of income support recipients. Moreover, lack of monitoring of participants in the workplaces to which they were placed, was another noticeable setback. Needless to mention that all participants are among the lowest social class, hence prone to abusive employment practices.

In 2007, as a result of the original program's failure, the then minister of industry, trade and labour, Eli Yishai, introduced a new one: Orot La-Ta'asuka. The latter heralded the changeover to a success-based model, where the franchisees were rewarded for the number of successful job placements they achieved, contrary to the original program. Chronically unemployed persons over the age of 45 were referred back to the Israeli Employment Service, whereas younger participants remained in the program. For an editorial on Orot La-Ta'asuka by Asma Agbarieh-Zahalka click here.

According to statistics of the Ministry of Finance, during the program's four years of operation, a total of 12,300 persons were detracted from the list of income support recipients. According to unofficial data collected by Israeli NGOs, only 5000 were able to find a stable and continuous job, mainly as cleaners at meagre salaries.

Plocker observes in conclusion, that "The statistics used by both the Israeli Employment Service and Orot La-Ta'asuka, proved to be controversial as far as the term "job placement" is concerned. They are unable to reinstate the hardcore of chronically unemployed persons back into the labor market, recipients of income support benefits. The proper way of handling them was and still is the local version of the Wisconsin Program, set to include underprivileged populations estranged from the labor market for years. That, however, on one condition: that the State finance and operate it from A to Z by means of non-profit organizations, with no involvement of revenue-driven franchisees".

In his editorial, Plocker dubs the program as the "failure of privatizing the Israeli labour market". For the full article click here.