Israel’s tech sector, which is the principle engine of the financial system, is dealing with a very difficult interval, based on a examine revealed at this time by the Taub Middle for Social Coverage Analysis. The examine discovered an increase in unemployment amongst tech employees, a fall within the variety of vacant jobs, and widening social and geographic variations. The principle causes, based on the researchers, are the consequences of the struggle, and acceleration in AI use.
In keeping with the information, between 2014 and 2023, the variety of individuals employed in Israel’s tech business elevated by about 60%, an addition of about 150,000 workers, primarily within the R&D discipline. Wages rose considerably and stay a lot greater than the typical within the financial system. Nonetheless, for the reason that outbreak of the struggle, the pattern has reversed. the unemployment charge within the business has risen and exceeded the typical within the financial system, and in 2024 there was a pointy fall within the variety of vacant jobs, primarily for younger and inexperienced employees, a pattern that has been referred to as the “juniors disaster.”
The examine is predicated on a complete evaluation of the Central Bureau of Statistics’ 2023-2024 Labor Drive Survey knowledge, inspecting the labor marketplace for individuals aged 25-64. The researchers examined the employment standing of various inhabitants teams: employed, unemployed, and job seekers, and integrated demographic variables resembling gender, sector, and place of residence. As well as, AI publicity indices had been used to evaluate the extent to which typical duties in several jobs will be carried out by AI methods, to estimate the extent of threat of employees being changed by automation.
AI is altering the face of employment in tech industries
The examine additionally outlines extensive variations in employment. Nearly 25% of non-haredi Jewish males are employed in high-tech, in contrast with solely about 12% of non-haredi Jewish ladies. In haredi society, lower than 10% are employed within the business, and in Arab society, lower than 5%. Geographically, there was a decline in employment in most areas of the nation, particularly within the north, the Sea of Galilee and Safed, whereas Jerusalem and the Jezreel Valley noticed a slight enhance. Tel Aviv continues to guide when it comes to employment, together with Petah Tikva, Haifa and Rehovot.
On the similar time, the examine discovered that tech providers are main the financial system in adopting AI applied sciences. This pattern is accompanied by a discount within the hiring new workers and the substitute of expert employees with automated methods. The researchers warn that in the long run, a major decline in employment within the business is predicted, if applicable coverage measures are usually not taken.
RELATED ARTICLES
Prof. Gil Epstein, one of many authors of the examine writes, “Implementation of AI and acceleration of automation are altering the face of employment in tech industries.” In keeping with him, there’s a noticeable lower within the variety of individuals employed in help positions, alongside a rise of their wages, a pattern that sharpens the necessity for skilled retraining and focused coaching.
The Taub Middle additionally recommends that the federal government kind a method that can leverage the AI revolution to advertise high quality employment and scale back gaps, particularly in peripheral areas. “It is a testing time for financial coverage in Israel,” the researchers stress, “Since preserving and strengthening the financial system’s foremost development engine is crucial for restoration and development in the long run.”
Printed by Globes, Israel enterprise information – en.globes.co.il – on September 18, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
