Job Market Shifts: Employers Gain Leverage as Tech Sector Faces Downturn
Translated & summarized from Calcalist by baba
Israel's job market has shifted, with employers now holding more leverage, particularly in the high-tech sector, where job seekers outnumber available positions. The ratio of jobs to job seekers in tech fell to 0.95 in September 2026, down from 1.35 a year prior. In contrast, sectors like industry and construction saw improved job availability. The CEO of the Employment Service cited a growing skills gap as a key factor.
The story in 5 lines · by baba
- The job market in Israel has shifted, with employers now having more leverage than job seekers.
- The high-tech sector's job availability ratio dropped to 0.95 in September 2026, down from 1.35 in September 2023.
- Industry and construction sectors saw nearly double the number of available jobs per job seeker.
- The average utilization of unemployment days has increased across professions, indicating job search difficulties.
- A widening gap between job seeker skills and employer needs is a key factor, according to the Employment Service CEO.
The ratio of available jobs to job seekers in Israel's high-tech sector has fallen below 1, indicating a shift in favor of employers, according to an October report from the Employment Service. This marks a significant decline from a peak of 7.2 in February 2022 and 0.8 in September 2023. The information and communications sector, closely linked to high-tech, saw its job availability ratio drop from 1.35 in September 2023 to 0.95 in September 2026. During this period, the number of job seekers in this sector increased by 58%, while available positions grew by only 10%.
Conversely, the number of available jobs per job seeker in industry and construction has nearly doubled, rising from 1.8 in September 2023 to 3.4 in September 2026. Similarly, the ratio in sales and services improved from 1.2 to 1.5. However, the situation for academics has worsened, with the ratio of jobs to job seekers decreasing from 0.8 to 0.7. For managers, the ratio remains low at 0.1, meaning ten unemployed managers compete for each available position.
The report also highlights an increase in the average utilization of unemployment days across various professions, even those with high relative demand. This suggests growing difficulty in finding employment, potentially due to skill gaps or location issues. For older unemployed individuals, average unemployment day utilization rose from 128.1 days in 2022 to 113.7 days in 2025. For older academics, it increased from 125 to 131 days.
Einbal Meshsh, CEO of the Employment Service, commented that the disparities between professions reflect a widening gap between the skills and experience of job seekers and the needs of employers. The data also shows a shift in the composition of job seekers, with a higher proportion now coming from stronger socioeconomic clusters, while the proportion from weaker clusters has decreased. The number of software developers and application analysts seeking work has also risen significantly.
