Nearly Half of Israeli Employers Plan to Hire in Coming Months

A new report from ManpowerGroup indicates that 49% of employers in Israel intend to increase their workforce in the upcoming months, while only 15% anticipate a reduction. The survey, which polled approximately 40,000 employers across 42 countries including 756 from Israel in July, found that 33% plan to maintain current staffing levels.

Israel's net employment outlook, calculated by subtracting the percentage of employers expecting layoffs from those expecting to hire, stands at 34%. This represents an 8-percentage-point increase from the previous quarter and a significant 16% rise compared to the same period last year. Globally, the net employment outlook is 29%, with 43% of employers expecting to hire and 14% expecting to reduce staff.

Sectors showing the strongest hiring intentions include construction and real estate (64%) and logistics and trade (51%). The tourism and hospitality sector, heavily impacted by recent conflicts, saw a substantial jump in hiring expectations, rising from 6% to 40%. Conversely, the high-tech and technology sector experienced a 6-percentage-point decrease in hiring outlook, settling at 36%, and the industrial sector also saw a 6-point drop to 24%.

Geographically, the central region of Israel leads in hiring expectations with 58%, followed by Tel Aviv at 42%. The northern region expects 37% hiring, Jerusalem 31%, and the southern region 22%. Haifa is the only area with a negative outlook, at -1%.

The report also highlighted an increase in the hiring of junior employees across various sectors. Overall, 44% of employers reported an increase in junior hiring, compared to 16% reporting a decrease. Construction and real estate led this trend with 68% reporting increased junior hiring. The primary drivers for expansion are company growth, new job creation, and specific projects, while automation and shifts in market demand are cited as reasons for workforce reduction.