An additional indication of the low level of income in Jerusalem can be found in the Index of "Average Available Income per Family as a Percentage of the National Average Available Income per Family". According to this index (the average available income for family is given as 100.0), the available income in Jerusalem was 103.4, as compared to 110.5 in Haifa and 116.8 in Tel Aviv-Jaffa. Between 1995 and 1996 there was a slight rise in the average available income per family in Jerusalem (from 102.1 to 103.4), as compared to a slight drop in Haifa (from 111.1 to 110.5) and a significant drop in Tel Aviv-Jaffa (from 121.7 to 116.8).

According to the Municipality's Department of Welfare Services, the past few years have seen a rise in the number of families being helped by the welfare services. According to statistics released by the Department, the Department served some 28 thousand households in 1993. In 1994 this rose to approximately 30 thousand households; in 1995, 30.4 thousand households; and in 1996, 32.6 thousand households. This rise can be explained, in part, by the difficulty residents have in meeting their basic needs and in part by an increase in the severity of certain social phenomena (e.g. children at risk and domestic violence). The percentage of families under the care of the Department is 21% of all families in the city.

In order to increase the number of employed persons and to raise the level of income, a new unit, the Employment Development Unit, was created in the Municipality's Department of Welfare Services. In 1995, this unit assisted some 1,800 residents and in 1996, 1,987; some were placed in jobs and others were directed to professional training courses so that they could raise their level of income (source: The Municipal Unit for the Development of Employment and Manpower Training, Operational Statistics, 1996).

Another indicator of Jerusalem's relatively low economic level is the degree of motorization, or the number of cars in the city. Although there has been an increase in the number of cars over the past few years, the numbers (202.6 per thousand people) are still low when compared to the national average (260.1 per thousand) or Tel Aviv (569.1 per thousand) and Haifa (337.7 per thousand; The Jerusalem Statistical Yearbook, 1996, Table 11/2).

Furthermore, there are also many more older cars in Jerusalem than in either Tel Aviv or Haifa. Some 31.3% of Jerusalem's cars were manufactured up to 1985, as compared with 17.7% in Tel Aviv and 20.9% in Haifa. Similarly, the percentage of vehicles manufactured after 1995 is 11.5% in Jerusalem, 21.4% in Tel Aviv, and 13.7% in Haifa (Ibid. Table 11/4).

One of the best indicators economic level is residential density: high density indicates a low economic level and low density indicates a high economic level. In Jerusalem, residential density is relatively high. In 1995, 12.1% of Jerusalem households consisted of two or more persons per room, while in Tel Aviv and Haifa the numbers were 5.7% and 4.4% respectively. The national average is 6.5%.

The situation is particularly pressing among the non-Jewish sector, where the average density is 2.2 persons per room in comparison to an average of 1.1 among the Jewish population. Furthermore, 28% of all non-Jewish households have 3 or more persons per room as compared to only 2% of Jerusalem's Jewish population. In contrast, 9% of non-Jewish households have less than one person per room, as compared to 43% of the Jewish population (ibid. Tables 6/18,19).

Apartment Size: The average area of apartments in Jerusalem is 72 sq. meters (August 1996). About 38% of all apartments have less than 60 meters (of them 12% have less than 40 meters). The highest concentrations of small apartments are, in the Jewish sector, in the older, ultra-Orthodox areas and in Nahlaot, Kiryat Menahem, Kiryat Yovel, and Ir Gannim, and in the non-Jewish sector, in the Muslim Quarter, the Christian Quarter, the Armenian Quarter, Silwan, and Jebel Mukabbar (Ibid. Table 10/14).

A calculation of residential density by square meters per person shows that:

Both the economic-business structure and the demographic-social-economic structure of the city have implications on the relatively low earnings of Jerusalem residents and of the Municipality, through the payment of city tax. The Arnona city tax is the main source of income for the municipal authorities. In 1996, the tax accounted for 45 percent of the city's total income (Regular Budget, Proposal for 1997), whereas in Tel Aviv it accounted for 55.8% and in Haifa, 53.5%. The city tax consists of a tax on residences and a tax on non-residential buildings. Incomes from the tax on residences are low, due to the high number of housing units that enjoy various reductions and even full exemptions from the tax (in 1996, some 43% of all housing units received reductions or exemptions). These reductions/exemptions are based in the law, and result mainly from demographic and economic considerations (age, family size, level of income, etc.).