Israel's Job Market Sees Growing Gaps Between In-Demand and Oversaturated Fields

Israel's labor market is experiencing widening disparities, with a shortage of workers in some sectors contrasting with increasing competition in others, according to the Employment Service's October report. The total number of job seekers remained stable at approximately 162,300, a slight 0.2% increase from September. However, the composition of job seekers has shifted, with a rise in unemployment benefit claimants and a decrease in those seeking income support.

The report highlights a significant increase in the gap between available positions and job seekers in industry and construction, where the ratio rose from 1.8 to 3.4. Conversely, in academic professions, the ratio dropped from 0.8 to 0.7, indicating intensified competition for academic roles. The tech sector also saw a substantial increase, with job seekers in technological professions rising by about 60% since September 2023, from 5,600 to 8,900.

Furthermore, the report points to a prolonged difficulty in returning to employment, evidenced by an increase in the utilization of unemployment benefit days across various professional groups. For instance, academic professionals, eligible for up to 175 days, saw their average utilization rise from 125 to 131 days. The Employment Service attributes these challenges to skill gaps, geographical mismatches, and unsuitable employment conditions.

The demographic makeup of job seekers showed relative stability, with the 35-54 age group remaining the largest. However, there was a decrease in the proportion of women seeking work and an increase in men. The report also noted a continued decline in job seekers from the Haredi and Arab sectors, alongside an increase among non-Haredi Jews. The proportion of job seekers from lower socio-economic clusters decreased, while those from higher clusters increased.