AI Drives Historic Surge in Israeli High-Tech Unemployment to 11% by May 2026
Translated & summarized from Arutz Sheva by baba
The Israeli Employment Service reports a historic rise in high-tech unemployment to 11% by May 2026, driven by AI advancements since ChatGPT's 2022 launch. Veteran workers and software professionals are most affected, prompting efforts to retrain and redeploy displaced employees across sectors.
The story in 5 lines · by baba
- High-tech unemployment in Israel nearly triples to 11% by May 2026 amid AI expansion.
- Since ChatGPT's November 2022 launch, high-tech job seekers rose from 4% to 11%.
- Veteran workers with over eight years’ experience face a 181% increase in unemployment.
- Software professionals constitute half of unemployed high-tech workers, with an 18% rise since 2022.
- Employment Service CEO stresses adapting workforce skills and integrating tech workers into other sectors.
A new report from the Israeli Employment Service reveals a significant rise in unemployment within the high-tech sector, linked to the expanding use of artificial intelligence (AI). Since the launch of ChatGPT in November 2022, the unemployment rate among high-tech workers has nearly tripled, climbing from about 4% to 11% by May 2026. In May alone, 16,340 high-tech workers were registered as unemployed.
The increase is especially pronounced among veteran employees. While unemployment among workers with up to four years of experience rose by 43% since 2023, those with over eight years of experience saw a staggering 181% increase. Software professionals, who now make up half of the unemployed high-tech workforce, experienced the most significant impact. The number of unemployed software workers with high AI exposure increased by 18% since 2022, compared to a 3% rise among non-software high-tech workers with similar AI exposure.
Inbal Mashash, CEO of the Employment Service, emphasized the need for proactive adaptation to these trends. She stated, "In a changing market, we must constantly monitor trends, prepare accordingly, and lead the development of Israel's human capital." Mashash also highlighted ongoing efforts to help displaced workers transition into new roles, including integrating high-tech unemployed workers into tech positions in non-technology sectors. She noted this approach benefits both the workers and the broader Israeli economy, stressing that "in the era of artificial intelligence, everyone must undergo scaling up."
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