Defense Tech Jobs Surge 40% in First Half of 2026 Amid Hi-Tech Sector Slowdown

While the broader Israeli hi-tech sector saw only a 6% increase in new job openings in the first half of 2026, the defense technology (defense tech) sector experienced a significant 40% rise in new tech positions compared to the same period in 2025. This growth also outpaces the 25% increase recorded in the second half of 2025. Alongside the surge in job openings, offered salaries in defense tech roles have risen by about 10%, with positions in Security Research seeing the largest pay increase of 23%, typically ranging from 35,000 to 45,000 shekels monthly, and up to 50,000 shekels for senior specialists.

Data from SQlink Group highlights strong demand in areas such as artificial intelligence (AI), cybersecurity, embedded systems, and Python-based automation. SQlink's CEO of the Digital Division, Roy Dimnik, noted that despite cutbacks in parts of the hi-tech industry, defense tech companies are increasing their need for consulting, development, and implementation of advanced technologies, including AI integration and complex embedded systems on Windows and Linux platforms.

Recruitment trends also show a shift in candidate preferences, with more engineers and developers open to working in defense tech due to its technological challenges, job stability, long-term projects, and sense of impact, according to SQlink's recruitment VP Shahar Hazan. The competition for talent skilled in AI, algorithms, embedded systems, and cybersecurity is intensifying.

Alon Lifshitz, co-founder of the Aurelius investment fund specializing in defense tech, attributes the sector's boom not only to recent geopolitical conflicts in Ukraine and the Middle East but also to a broader, sustained era of global uncertainty. He emphasizes that governments and investors now prioritize innovative defense technologies that combine economic returns with strategic national security benefits. Aurelius, launched in 2025, invests in dual-use technologies applicable to both military and civilian sectors, including companies like Outpost Space and Shifters Robotics.

SQlink's data is based on its recruitment activity and client demand within the defense tech field, underscoring the sector's role as a key growth engine in Israel's technology market amid wider hi-tech challenges.