Academics Face Rising Unemployment in Israel Amid Economic Shifts

The number of unemployed academics in Israel has surged by 46% over the past four years, even as the overall unemployment rate remains low. New data from the Employment Service indicates a worrying trend: a growing number of degree holders are struggling to find work, with the high-tech sector no longer immune. The academic degree, long considered a secure entry ticket to the job market, is gradually losing its status.

According to the report, published by the Employment Service and detailed in "Calcalist," the proportion of academics among job seekers reached 20.5% in August, up from 14% in August 2022. This upward trend has been consistent, rising from 18.6% in May to 20.3% in July, and continuing to climb.

A primary driver of this increase is the slowdown in the high-tech industry. The number of job seekers among software developers and application analysts rose by approximately 6.4% in recent months, from 8,350 in June to about 8,900 in August, demonstrating that even a key engine of the Israeli economy is not exempt from layoffs.

The Employment Service identifies a broader shift in the labor market structure. While unemployment was previously concentrated among lower socioeconomic groups, there is now a consistent rise among those with higher education and from higher socioeconomic clusters. Data shows that job seekers from the highest clusters (8-10) increased from 16.8% three years ago to 20.6% currently, while a decrease was recorded in the lowest clusters (1-3).

Additionally, the report notes a seasonal impact from summer layoffs in the education system, particularly affecting Haredi (ultra-Orthodox) teachers placed on unpaid leave during the summer break. This has led to an increase in female job seekers and an almost 8% rise in job seekers from the Haredi sector.