Imagine a country where the very people driving its economic growth are the ones most at risk of falling into poverty. This is the shocking reality for Israel’s self-employed workers, according to a groundbreaking report by the Histadrut. The study reveals that over a quarter of self-employed families in Israel are living below the poverty line, a statistic that should alarm anyone concerned about economic fairness and social stability. But here's where it gets even more concerning: child poverty rates among self-employed households are a staggering 10.5 percentage points higher than those of families with salaried employees. This isn’t just a number—it’s a call to action.
The report, authored by Dr. Robbie Nathanson for the Self-Employed Forum of the Histadrut, paints a detailed and troubling picture of the financial vulnerability faced by Israel’s self-employed population. In 2024, 26.6% of households led by self-employed individuals were living in poverty, marking a 0.9 percentage point increase from the previous year. This contrasts sharply with the 22.9% poverty rate among households headed by salaried workers. And this is the part most people miss: the deeper the reliance on self-employment income, the greater the risk of poverty. When the self-employed person is the primary breadwinner, the poverty risk jumps by 5–6 percentage points compared to households where they are not the main earner.
While there was a slight improvement in the depth and severity of poverty among self-employed households—dropping from 35.9% to 35.6% and 18.3% to 17.9%, respectively—the overall poverty levels remain alarmingly high. The most heart-wrenching statistic? Child poverty among self-employed families stands at 34.1%, compared to 23.6% for children of salaried employees. This generational gap raises serious questions about the future of these families and the society at large.
But here’s the controversial part: government aid programs, such as transfer payments and grants, are significantly less effective for self-employed households, reducing poverty by only 30% compared to 36% for salaried households. This suggests that the social safety net is failing those who need it most. Why is this the case? Are self-employed workers being overlooked in policy decisions, or is there a deeper systemic issue at play? These are questions that demand answers.
Self-employed individuals living in poverty are often freelancers or owners of small businesses in high-risk sectors like hospitality, arts, entertainment, and education. These are the people who bring creativity, innovation, and dynamism to the economy, yet they are left to fend for themselves in times of hardship. Rami Beja, chair of the Histadrut’s Self-Employed Forum, didn’t hold back in his response to the report: “This is a disgrace for the State of Israel. After years of COVID-related upheaval and an ongoing war, self-employed workers feel invisible. The safety net we’re promised simply doesn’t exist—or is woefully inadequate.”
Beja’s call to action is clear: “The Israeli government must change course. Austerity measures and frozen rights are killing small businesses. Rehabilitating the self-employed sector isn’t just a moral imperative—it’s a national interest. Without strong self-employed workers, there is no Israeli economy. We deserve security as a right, not a favor.”
Now, here’s where we invite you to join the conversation: Do you think the government is doing enough to support self-employed workers? Are current policies fair, or is there a need for radical change? Share your thoughts in the comments—let’s spark a debate that could shape the future of Israel’s economy.
