Israel combines job creation with strong returns

The Israeli economy and its publicly traded securities have proven to be rewarding for emerging market investors. Now it’s setting the standard for job creation as well.

According to Bloomberg Businessweek, Israel is “beating all comers” in job creation. The nation’s combination of fast population growth, robust exports and sound monetary policy has led Israel to create jobs faster than the U.S., the European Union, Poland, or even Brazil.

Middle Eastern securities have fared well lately.  MagicJack VocalTech (CALL, quote), an Israeli telecommunications company, is one of the best performing stocks for 2012. Exchange traded funds such as WisdomTree Middle East Dividend (GULF, quote) and iShares MSCI Israel Cap Invest Mkt Index (EIS, quote) are also solid investments. 

Israel is the second best educated member of the OECD, and has doubtless gained from its commitment to education. This is paying off in jobs data. While the United States is struggling with high unemployment, Bank of Israel Governor Stanley Fischer says Israel is near full employment.

One Response to Israel combines job creation with strong returns

  1. “have proven to be rewarding for emerging market investors.”

    Good article though I don’t believe that Israel is considered an emerging market by any of the following classfications: S&P; FTSE; MSCI; Dow Jones.

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