Foreign Firms Drive Israel's Goods Exports, But Job Growth Declines
Foreign-controlled companies accounted for 54.2% of Israel's total goods exports in 2025, reaching NIS 143.7 billion, according to data released by the Central Bureau of Statistics (CBS). This represents a 31% increase from NIS 109.5 billion in 2024. The CBS noted that this figure is a "lower bound" as it excludes services exports, which constitute the majority of Israel's export strength.
The CBS analysis, covering foreign multinational companies' activities in Israel between 2022 and 2025, revealed a dual trend: while these companies' share in exports is growing, their workforce is shrinking. In 2025, these firms employed 288,000 salaried workers, down from 294,000 in 2024 and 303,000 in 2022, a cumulative decrease of approximately 15,000 jobs, or about 5%, over three years. The decline is more pronounced in the high-tech sector, which saw employment drop to 139,000 in 2025 from 144,000 in 2024.
Overall compensation for employees in these foreign-controlled companies totaled NIS 102.1 billion in 2025, with 66.5% of that, or NIS 67.9 billion, in high-tech. Salary growth was minimal, with a nominal increase of only 1.4% across all companies and 0.9% in high-tech. The average annual salary in these firms reached NIS 354,400, with high-tech employees earning an average of NIS 486,800. The highest average salaries, exceeding NIS 500,000, were recorded in information and communication technology and professional, scientific, and technical services, particularly in computer consulting and R&D.
Interestingly, smaller companies (up to 99 employees) offered higher average compensation (around NIS 406,000) compared to larger companies (1,000+ employees), which paid an average of approximately NIS 316,000, below the overall average. Despite employing a smaller portion of the workforce (17.7%), smaller firms accounted for a larger share of total compensation (20.3%), while larger firms, employing 33.6% of workers, accounted for only 30% of the total compensation.
