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WINTER Special to The Jewish News Israel's Labor Minister re- leased some shocking figures — "There are 115,000 Israelis un- employed at this time." This constitutes eight percent of the country's 1.4 million workers. Labor Minister Katsav predicted that the unemployment figures will pass the ten percent mark by March or April of 1986. Unemployment in Israel of these proportions is unaccept- able, not only to Israel but to world Jewry as well. Unem- ployment creates difficult social problems, increased emigration from Israel and extreme hard- ships for the 100,000 Israelis that are unemployed. To further aggravate the situation, sub- sidies have been either removed or reduced. This causes a severe strain on family budgets. It. is anticipated that more layoffs will occur as cuts are made in the national and local Israeli budgets. The work force of government-owned companies will also be cut. Israeli industry cannot pick up the slack since it too is going through a cost- cutting program caused by a de- crease in the demands of the local market. Providing an additional 100,000 jobs in Israel is no easy task. It won't happen overnight. There are some short-term solu- tions which will come about as a result of expansion of exports. Long-term solutions will occur through increased foreign in- vestment in hi-tech factories in Israel. Why has unemployment in Is- rael increased from five percent a year ago to eight percent this year? For the most part, the an- swer can be placed on the doorstep of the austerity pro- gram recently imposed in Israel. The economy of Israel had got- ten out of hand and a belt tight- ening program became neces- sary to get the economy back on track. The standard of living of Israelis was pushed down. Wages and prices have been fro- zen. Substantial budget cuts had to be made. Unfortunately, se- vere unemployment followed in the wake of the austerity pro- gram. How can additional private sector jobs be created in Israel? Let me suggest the following: Israel must utilize its hidden economic weapon — The buy- ing power of worldwide Jewry." The call must go out to "buy products made in Israel." This means consumers must ask for Israeli products in their local supermarkets ... not just before holidays, but year round. There are many excellent food prod- ucts and wines that should con- stantly be on the shelves of food retailers. Israeli garments should be on racks in men's, women's and children's apparel stores. We need to launch a massive effort made to urge the Jewish community to buy Israeli prod- ucts, whenever possible. We have a program called "Opera- tion Join Up, Buy Products Made in Israel." This describes how to develop a plan to make certain that Israeli products are available in retail stores. This plan is available without charge by writing the Committee for Economic Growth of Israel, 5301 North Ironwood Road, P.O. Box 2053, Milwaukee, Wisconsin 53201. We need to interest American wholesalers and distributors to buy industrial products carrying the label, "Made in Israel." Is- raeli industrial products can be imported into the United States duty-free as a result of the Free Trade Agreement. As a result, these products are competitive in the American marketplace. We need to attract American companies to open factories in Israel where their products will be exported. These companies can follow the pattern of the 155 American companies in Israel that are operating on a profita- ble basis. The Free Trade Agreement between the United States and Israel offers opportunities for American companies to man- ufacture products in Israel and sell them to European buyers Israel's hidden economic weapon is the buying power of world Jewry. duty-free. Many American corn- panies are kept out of the Euro- pean market because of high duty imposed by European gov- ernments on products made in the United States. Israel now of- fers an important advantage to those American companies, hungry for foreign exports. We need to sell American companies on the opportunities and high incentives that are available to them in Israel. They need to understand the reasons behind the construction of Intel's $150 million plant in Israel. Israel offers a high level of engineering and scientific capability that is attractive to American hi-tech industry. Is- rael has truly become the "in place for innovation." We need to incorporate an industrial component into Proj- ect Renewal plans. Much of the unemployment in Isarel is in the Project Renewal develop- ment towns. The leaders of Proj- ect Renewal in each community need to direct their attention to attracting local companies to set up factories within their twin city in Israel. Providing paychecks rather than welfare checks is certainly to be desired. Handwringing won't eliminate the unemployment of Israel. We need to take the steps that I have suggested to create the 100,000 private sector jobs that will be needed to alleviate the serious problems created as a result of a ten percent projected unemployment figure. Elmer Winter is chairman of the Committee for Economic Growth of Israel.