Israel's Unemployment Rises in July Amid Seasonal Layoffs, Yet Job Market Shows Recovery Signs

In July 2026, the number of job seekers in Israel surged to 173,500, primarily due to seasonal summer layoffs, according to the Employment Service report. Despite this increase, the labor market is showing signs of recovery, with a growing number of job vacancies and a tightening market dynamic. The Central Bureau of Statistics reported approximately 150,200 job openings in May 2026, an increase of about 8,400 from the previous month, resulting in a ratio of roughly four vacancies for every five job seekers.

The Employment Service noted that recent months' data are still influenced by an unusual spike in March-April linked to Operation "Roaring Lion," and emphasized the importance of analyzing long-term trends rather than monthly fluctuations. Excluding temporary summer layoffs, there is a clear recovery trend in both job seeker numbers and labor demand.

The composition of job seekers is also shifting. In July, 20.4% of job seekers belonged to higher socio-economic clusters (levels 8-10), up 3.4% from July 2023. The proportion of academic professionals among job seekers rose to about 20.3%, though the Employment Service clarified that this increase largely reflects summer layoffs in the education sector rather than a broad decline in academic employment.

Specifically, the number of unemployed secondary school teachers increased by 43.7% from May to July, from 2,300 to 3,300. Additionally, job seekers in high-tech fields such as software development, application analysis, database, and network professions rose, with about 17,000 unemployed in the tech sector in July, a 3% increase over two months.

Seasonal effects are also evident in gender distribution, with women comprising 55.5% of job seekers in July, up from 54.1% in June, and 58% of new registrants. Regional unemployment rates were highest in Rahat (6.0%), Umm al-Fahm (5.6%), Acre and Afula (4.7%), Kiryat Gat (4.6%), and Nazareth (4.5%), while lower rates were recorded in Ramat Hasharon, Rishon Lezion, Kfar Saba (around 2.3%), and Ra'anana, Holon, Eilat, and Nes Ziona (about 2.5%).