Youth Unemployment and Education Gaps Widen in Israel, OECD Data Shows
Translated & summarized from Bizportal by baba
A recent OECD report indicates a worsening situation for Israeli youth, with a rising NEET rate and widening educational attainment gaps compared to other developed nations. The report also highlights underinvestment in higher education and early childhood development, alongside declining teacher salaries relative to other academic professions.
The story in 5 lines · by baba
- Israel's youth NEET rate rose to 20%, the highest increase among developed nations.
- Educational attainment gaps are widening in Israel compared to OECD averages.
- Israel invests significantly less in higher education per student.
- Gender disparity in higher education is larger in Israel than the OECD average.
- Classroom sizes are larger and early childhood spending is lower in Israel.
A new OECD report reveals a concerning trend in Israel, where the proportion of young adults aged 18-24 not engaged in employment, education, or training (NEET) has risen to 20% in 2025, up from 17% in 2015. This contrasts sharply with the average OECD country, where the NEET rate decreased from 16% to 13% during the same period. Israel experienced the most significant increase among developed nations, indicating that one in five young Israelis are currently outside the primary pathways to economic independence.
The report, "Education at a Glance 2026," also highlights a similar negative trend in secondary education attainment. The percentage of Israelis aged 25-34 without a high school diploma increased from 9% in 2015 to 11% in 2025, while the OECD average saw a decline from 17% to 12%. This educational gap translates directly into lower earnings, with Israelis without a high school diploma earning approximately 72% of what high school graduates earn, compared to an 87% average across OECD countries.
Furthermore, Israel's investment in higher education lags significantly behind other developed nations. Government spending per student in 2023 was $7,885 (in purchasing power parity terms), less than half the OECD average of $16,405. The government's share in funding higher education in Israel stands at 38%, compared to the OECD average of 68%.
The report also points to widening gender disparities in higher education attainment within Israel. While the percentage of Israeli men aged 25-34 with a university degree remained stagnant at 36% between 2015 and 2025, the OECD average for men rose from 34% to 43%. Conversely, 57% of Israeli women in this age group hold a university degree, slightly above the OECD average of 56%. This results in a 21-percentage-point gap in higher education attainment between men and women in Israel, compared to a 13-point gap in the OECD average.
Classroom sizes in Israel remain notably large, with an average of 27 students in elementary schools and 30 in middle schools, exceeding OECD averages of 21 and 23, respectively. Public spending on early childhood education (ages 0-2) is also critically low, at $1,482 per child annually, less than 10% of the OECD average. Additionally, the relative salary of teachers has declined; while their nominal salary increased, it did not keep pace with other academic professions, causing the ratio of elementary school teacher salaries to other academic salaries to fall from 86% to 73% in Israel, compared to an OECD average of 87%.
