A slight restoration within the high-tech labor market in 2025. After a decline in 2024, the variety of staff elevated by 2.3%, from 396,000 in 2024 to 405,000 in 2025. This displays a rise of 4% in technological professions and a lower of 0.8% in non-technological professions. The emptiness charge in high-tech additionally elevated from 4% to 4.8%.
Nevertheless, the restoration didn’t prolong to software program builders. Their unemployment charge rose to three.5%, and there are about 8,000 job seekers amongst software program builders and methods analysts.
That is in response to the high-tech chapter of the Ministry of Labor’s 2025 Israeli Labor Market Report, which can be revealed within the coming days. The high-tech sector accounts for about 20% of GDP and greater than half of Israeli exports. It employs over 400,000 employees, representing about 11.5% of the economic system’s workforce. It contributes 36% of the state’s earnings tax income from wages. The common wage within the sector is 2.7 occasions greater than wages in different elements of the economic system.
After years of accelerated progress, employment progress within the high-tech sector slowed in 2023-2024. The variety of staff within the sector fell by greater than 1%, from 401,000 in 2023 to 396,000 in 2024. In accordance with the Ministry of Labor, “This slowdown displays decreased funding and hiring as a result of international slowdown and uncertainty in worldwide markets, the high-interest-rate atmosphere worldwide, political and social instability in Israel in 2023, and the direct penalties of the Swords of Iron conflict, which deterred overseas traders.”
In 2025, a further 9,000 employees have been added, representing progress of two.3%. Nevertheless, that is considerably decrease than the charges recorded in 2018-2022. In 2022, for instance, progress reached 10.7%. The slowdown in employment within the earlier two years was evident in each technological and non-technological professions. In 2025, employment recovered primarily on account of progress in technological professions, which elevated by 4%, whereas non-technological professions declined by 0.8%.
The decline in demand for high-tech employees was additionally mirrored in vacancies, which fell from a peak of almost 6% of all high-tech positions in 2018-2019 to a mean of about 4% in 2023-2024, much like the economic system as an entire. In 2025, the pattern reversed, and the emptiness charge in high-tech rose to 4.8%, in contrast with 4.5% within the broader economic system.
About 20% of these employed in technological professions work in data know-how fields, together with methods analysts, net and multimedia builders, and database and community directors. Since 2023, progress in these professions has accelerated, and so they have accounted for a lot of the employment enhance within the high-tech business in recent times.
Virtually 1 / 4 of employees in technological professions are software program builders, and the overwhelming majority are employed within the high-tech business. After a interval of double-digit progress between 2018 and 2022, the variety of employed software program builders stabilized at about 80,000. Their unemployment charge, which had been low over the previous decade, rose to three.5% in 2025 (with no related enhance recorded in different technological professions). In accordance with the Employment Service, the variety of job seekers in high-tech has doubled since 2022, reaching about 16,300 on the finish of 2025. Most of this enhance is concentrated amongst software program builders and methods analysts, who account for about 51% of all job seekers, greater than 8,000 individuals.
In accordance with Jobify, an AI-based job search platform, about 8,000 to 10,000 high-tech jobs are posted every month, of which about 4,000 are in software program growth. Though this discipline continues to guide hiring exercise, it has stagnated, with no progress in job postings from mid-2024 to the tip of 2025. In distinction, the info and synthetic intelligence sector stands out, rising by about 50%.
Ministry of Labor Director Normal Rubi Shemesh mentioned: “The info reveals that the Israeli high-tech labor market is altering. Demand is step by step shifting from conventional software program professions to synthetic intelligence, information, and {hardware}, whereas assist roles are eroding. The primary problem for the Ministry of Labor is to shut the hole between employees’ abilities and the economic system’s evolving wants via coaching, reskilling, and adapting the training system to the brand new technological actuality.”