Israeli Job Market Recovers Sharply After Operation Guardian of the Walls with 57% Drop in Unemployment

The Israeli labor market is gradually returning to normal following Operation Guardian of the Walls, though it has not yet reached pre-war levels, according to a report by the Employment Service published on Sunday. By the end of June, the number of job seekers dropped dramatically to approximately 169,000, marking a 57% decrease from the peak unemployment recorded during the operation. Despite this rapid recovery, the current number of job seekers remains about 8% higher than the same period last year before the war began (June 2023).

The report also highlights an 8% decline in unemployment benefit claimants, totaling around 127,000 people. Meanwhile, claimants of income support benefits decreased moderately by about 2%, remaining at a historic low of approximately 35,800 individuals. Young workers aged 34 and under, who were the hardest hit during the operation, have shown the fastest return to employment, with a 57% drop in job seekers in this age group since April.

Women’s share of total job seekers is currently 54.1%, steadily declining back toward normal levels, although a temporary rise is expected during the summer months due to seasonal layoffs in education and after-school programs. Socioeconomic shifts were also noted, with an increase in job seekers from higher socioeconomic clusters (levels 8-10) and a continued decrease among lower clusters (levels 1-3).

Professions most affected by the Home Front Command restrictions during the fighting, such as gardeners, waiters, assistants, caregivers, and fitness trainers, have seen the sharpest declines in unemployment, ranging from 64% to 80%. In contrast, high-tech and remote-capable jobs like software and network developers experienced milder impacts, with only a 4% to 6% decrease in job seekers. City-level data shows an average 6% decline in unemployment across most Israeli cities, with Umm al-Fahm and Rahat leading in unemployment rates, while central cities including Ra'anana, Ramat Hasharon, and Bnei Brak report the lowest rates. Additionally, unemployment decreased between September and October.