Israel's Average Salary Rises, But High-Tech Sector Sees Job Decline
Translated & summarized from Maariv by baba
Israel's average monthly salary increased by 4.2% year-over-year to approximately 14,515 shekels in September. Despite this overall rise, the high-tech sector saw a 0.7% decrease in jobs in August, though its average salary remains significantly higher than other sectors. The scientific research and development field within high-tech reported the highest average salary at 37,258 shekels in August, but this figure has shown recent volatility. Overall salaried positions in Israel saw a slight annual increase despite monthly fluctuations.
The story in 5 lines · by baba
- Israel's average monthly salary rose 4.2% year-over-year to an estimated 14,515 shekels in September.
- The high-tech sector's average salary in August was 37,258 shekels in R&D, but jobs declined 0.7% from July.
- High-tech salaries are nearly 2.7 times higher than the weighted average of 12,500 shekels in the rest of the economy.
- The financial sector averaged 22,860 shekels but comprised only 2.6% of salaried jobs in August.
- Total salaried positions in Israel saw a 0.9% increase compared to August last year.
Israel's average monthly salary rose by 4.2% over the past year to an estimated 14,515 shekels in September. However, a deeper look at the data reveals significant disparities across sectors and within the technology industry itself. The high-tech sector, while still commanding a much higher average salary, experienced a decrease in the number of jobs. In August, there were 394,200 employed in high-tech, a 0.7% drop from July and a 0.6% decrease compared to the previous August. Despite this, high-tech's share of all salaried positions increased slightly to 9.5% in August.
The financial sector reported an average monthly salary of 22,860 shekels, but accounted for only 2.6% of all salaried jobs. In contrast, non-financial companies, which represent 64% of the workforce, had an average salary of 15,882 shekels. The government sector averaged 13,633 shekels, private non-profits paid 7,910 shekels, and households paid just 6,313 shekels. Excluding high-tech, the weighted average salary across the rest of the economy was approximately 12,500 shekels per month, meaning high-tech salaries are nearly 2.7 times higher.
Within the high-tech industry, significant wage gaps persist. The highest average salary was recorded in scientific research and development in August at 37,258 shekels, a slight decrease from July and a more substantial drop from June. This sector is known for its volatility due to one-time payments like bonuses and holiday stipends. Other high-paying areas within tech include computer programming and consultancy (35,136 shekels) and information services (34,454 shekels).
Overall, Israel had 4.156 million salaried positions in August, a 2.2% decrease from July but a 0.9% increase from the previous August. Trend data indicates a 2.2% annual rise in jobs from June to August. Preliminary estimates for September suggest a continued annual increase in average salary, alongside a monthly decline in the number of available jobs.
