With a fertility rate that nearly triples the national average and increased political power that accompanies demographic growth, Haredi (ultra-Orthodox) Jews in Israel are becoming an increasingly important piece of the country's diverse national mosaic. This raises economic concerns: Haredi women earn low wages, while most Haredi men do not work. Meanwhile, like all Israeli citizens, Haredim receive expensive government services, including funding for ultra-Orthodox schools. Haredi schools focus on religious instruction at the expense of core subjects, and comprise a barrier to economic and social integration. Whether other Israelis should be responsible for financing an education that provides limited positive externalities is debatable. More importantly, Haredi population growth and attitudes towards work and education might jeopardise Israel's long-term economic outlook. Potential policy solutions include decentralisation of government services, including education or financial incentives for curricular modernisation.