57 percent and 58 percent respectively. this is linked to the low employment rates in those two sectors, mainly among ultra - orthodox men, and arab women. a closer look at employment among arabs reveals an even more complex picture. an analysis of the figures in the cbs income surveys and the manpower surveys reveal several findings worthy of attention : 1 ) the participation rate among arab women is rising, but it is still lower than that among jewish women. moreover, the rise in their participation rate is reflected mainly in an increase in unemployment among arab women, with only a moderate increase in their employment. thus, in 2006 the employment rate among arab women was about 17 percent, compared with 51 percent among all women in the population. 2 ) in contrast to arab women, the participation rate among arab men is declining, and since the beginning of the decade it has been lower than that among jewish men. this is most prominent among older men. 3 ) the arab labor force has a lower educational level, with most having between nine and twelve years of schooling, compared with the jewish labor force, the highest proportion of which has more than twelve years of education. 4 ) the unemployment rate is higher among arabs than among jews. 5 ) employment among arabs is concentrated in low - paid industries. 6 ) on average, the wage of arab employees, as well as the hourly wage, is lower than that of jewish employees. furthermore, many studies highlight employment inequality and wage inequality between the arab population and the jewish population. there are several reasons for this, and i will not be revealing any new discovery if i mention the word " discrimination ". the picture arising from the integration of the arab population in the work force in israel indicates the necessity to pay special attention to this issue and to find appropriate solutions based among other things on a proper system of incentives. the purpose must be to increase the participation rate of the whole arab population and at the same time to remove the barriers to their absorption in the workplace, and this is of particular relevance to women. at the same time it is essential to place education as a high priority, and i mean particularly education and training in professions and skills that will help the integration of the arab population into the labor market, especially in those industries and occupations requiring relatively high levels of skill, and which command high pay. i am referring both to technological and non - technological education. in this context i would like to mention that in the last few years technological education has been sorely neglected. i hear

patients. from my father, i learned to focus on a goal, to concentrate on what is truly important, but also to be pragmatic and reach agreements, because there is no need for unnecessary battles. i hope to bring these principles with me to the role of governor of the bank of israel. there are many important goals to achieve for the economy and the bank of israel, which is one of the most important institutions in the economy. the new law defines the bank ’ s objectives and functions clearly and unequivocally. the main objective of the bank is to maintain price stability. in recent years, this goal has generally been achieved, though we must not take this for granted. we all remember very well the consequences of high inflation for israel ’ s economy. the bank of israel will continue to maintain inflation within the target, and no less importantly, the public ’ s confidence in the bank ’ s commitment to price stability. the economic literature and historical experience indicate that in the long term, price stability is a necessary condition for a growing and thriving economy. given price stability, the law defines the additional objectives of the bank of israel – to support the government ’ s economic policy and the stability of the financial system. these issues are at the forefront of our considerations when we decide the bank of israel ’ s policies. just as in recent years, the bank of israel will continue to support the growth of the economy, while maintaining the stability of the financial system in general, and the banking system in particular. bis central bankers ’ speeches the governor of the bank of israel is also, by law, the economic advisor to the government. our research department leads the research on israel ’ s economy, and will continue to delineate the research basis for the public discussion in areas on the agenda of economic policy makers. there are many issues, and i will attempt to focus on the most important ones : first and foremost, we must find the ways to increase the growth rate of productivity in the israeli economy. there is tremendous potential lying within the israeli worker, but gdp per employee does not match that of the most advanced economies, and as a result, the economy does not succeed in allowing citizens a standard of living in line with that of the most developed economies. we must find the way to increase the attractiveness of investment in the economy and to increase capital stock, to improve the competitive environment in which the business sector operates, and to reduce the bureaucratic burden. we must continue our