Israeli Job Market Recovers, But Rise in Educated Unemployed Sparks Concern

Israel's job market is showing signs of recovery, according to the August employment service report. The number of job seekers has decreased, indicating a return to pre-war levels. However, a notable shift is occurring in the composition of the unemployed, with a consistent rise in individuals holding academic degrees.

In August, those with academic professions constituted 20.5% of all job seekers, up from 20.3% in July and significantly higher than the 14% recorded before the war. This trend contrasts with a decrease in the number of individuals seeking income support.

The report also highlights a seasonal increase in unemployment in Haredi (ultra-Orthodox) communities, particularly in cities like Bnei Brak, Modi'in Illit, El'ad, and Beitar Illit, attributed to summer layoffs. Conversely, cities such as Nazareth, Shfaram, Karmiel, Bat Yam, and Acre saw notable decreases in unemployment.

While the August data suggests a positive trend towards stabilization, the full picture of the post-summer job market will only be clear after the holiday season. The demand side of the labor market is also improving, with the Central Bureau of Statistics reporting approximately 152,400 job openings in July, an increase of about 2,600 from the previous month. This brings the supply-to-demand ratio close to pre-war levels, indicating a stabilizing market. The sectors showing the most demand are construction, industry, sales, and services, which were heavily impacted by the war but are now recovering.