Israeli Employment Service Forecasts Sharp Rise in High-Tech Job Seekers Amid AI Impact

The Israeli Employment Service has released a concerning report revealing a significant increase in the number of job seekers in the high-tech sector. In May 2026, the number of unemployed high-tech workers reached a historic peak of approximately 16,340, representing about 11% of all job seekers in Israel, up from around 9% in previous years. The report highlights that this rise is closely linked to the rapid development of artificial intelligence (AI).

Since the launch of OpenAI's ChatGPT at the end of 2022, the share of high-tech job seekers among all unemployed nearly tripled from 4% to 11%. Specifically, software developers who heavily use AI in their work saw an 18% increase in unemployment since 2022, compared to only a 3% rise among other high-tech workers exposed to AI. This suggests AI is primarily affecting programming roles, which are most susceptible to automation or AI assistance.

Contrary to common belief that AI mainly impacts junior programmers, the data shows a 43% increase in unemployed workers with 0-4 years of experience and a much larger 181% surge among those with over 8 years of experience. However, the absolute numbers remain higher for less experienced workers, with about 8,000 unemployed juniors compared to 1,750 seniors as of June 2026.

The Employment Service developed a statistical model forecasting that the number of unemployed high-tech workers will continue rising gradually, reaching nearly 19,700 by August 2026 due to seasonal factors, before slightly declining to around 16,750 by December. These projections include an upper limit estimate of up to 25,500 unemployed.

Employment Service CEO Einbal Mashash emphasized that the high-tech labor market is undergoing a profound transformation driven by technological advances, especially AI, which is reshaping job demand and employment characteristics in the sector.