The Haredi population in Israel is rapidly increasing, posing a serious threat to the country's economy. Israel is typically known for its advanced technology, knowledge-based companies, and skilled workforce, but there is a growing demographic problem.
Declining Labor Market Participation
The Haredim are one of the religious groups of Jews in Israel who have large families, and their social life revolves mainly around family, religious schools, and studying religious texts. In 2025, approximately 1.45 million Haredim lived in Israel, accounting for 14 percent of the country's population. However, a significant portion of Haredi boys enter the religious education system at a young age and spend a lot of time studying religious texts. This leads to limitations in the education of general subjects such as mathematics and sciences.
Read more: National Date Day and Its Importance in Hormozgan's Economy
Israel's economy heavily relies on skilled labor and needs engineers, doctors, and programmers to continue its activities in technology. If the Haredi population, which is growing faster than others, does not receive the necessary education to enter these professions, a serious economic problem will arise in the future.
Consequences and Social Challenges
The issue is not limited to education; the employment rate of Haredi men is lower compared to other Israeli men. Many of them spend long years in yeshivas, which are higher religious schools, studying full-time. Meanwhile, the income of Haredi women and government assistance play a role in covering living expenses. This is while many non-Haredi Israelis serve in the military in addition to working.
With the increasing Haredi population and their declining participation in the labor market and tax payments, a serious question arises: What will happen to the economy and government budget?
This disparity existed even before the Gaza war, but the war complicated the situation. In June 2024, the Israeli Supreme Court announced that there was no longer a legal basis for the broad exemption of Haredi students from military service. This decision faced serious political and social resistance and turned the Haredi issue into a threat to Israel's economy.
The rapid growth of the Haredi population could lead to changes in Israel's economic and social structure. If Haredi children who are entering school today do not receive the necessary education to enter the labor market, Israel will face a greater gap between labor market needs and the skills of the workforce. This issue is interconnected with a series of related problems: population, education, employment, taxes, and military service.
The main challenge for Israel is how to align the rapid growth of the Haredi population with the future economic and social needs of the country. This seems to be a difficult task.
Read more: CEO of Qom Industrial Parks: Technology as a Driver of Competitiveness for Small Industries · Resurrection: The Necessity of Educational Justice for Remote Areas
