Israel Faces Growing Youth Unemployment and Education Gap Compared to OECD

Israel is experiencing a significant rise in young people aged 18-24 who are neither employed nor in education, a trend that contrasts sharply with the OECD average. This demographic, known as NEET (Not in Education, Employment, or Training), increased from 17% to 20% in Israel over the past decade, while the OECD average decreased from 16% to 13%. This worrying trend places Israel among developed economies with the most pronounced growth in this category.

Furthermore, the proportion of Israelis aged 25-34 who have not completed secondary education has risen from 9% to 11% between 2015 and 2025, according to an OECD report. This is in contrast to the OECD average, where this figure dropped from 17% to 12%. Only five developed nations saw an increase in this metric, with Israel and Slovakia showing the most significant rises.

The educational attainment gap directly impacts income. Israelis aged 25-34 without a high school diploma earn, on average, 72% of what their peers with a full secondary education earn, compared to an OECD average of 87%. The report also highlights that prolonged periods of inactivity in youth can hinder future employment and social integration, and increase the likelihood of criminal involvement.

Israel ranks third to fifth among 33 OECD countries for its NEET youth population. The country also spends significantly less per university student than the OECD average, with 2023 figures showing $7,885 compared to the OECD's $16,405. State funding for higher education is also lower, at 38% in Israel versus 68% on average in the OECD.

In early childhood education and care, Israel ranks last among OECD nations, spending an average of $1,482 per child in 2023, compared to the developed country average of $15,067. Rotem Getrayda, head of the National Council for Students and Youth, stressed the urgent need to increase education spending, suggesting that upcoming Knesset elections could bring attention to educational issues.