Israel’s Unemployment Rises Slightly in July Amid Seasonal Job Losses and Sector Shifts

Israel’s labor market showed a modest increase in registered unemployed individuals in July 2026, according to the Employment Service. The number of job seekers rose from approximately 169,000 in June to about 173,500 in July, an increase of around 4,600. This rise is largely attributed to seasonal summer layoffs, with about 8,100 new unemployed workers from summer dismissals, representing 20% of new registrants. Despite the increase, officials emphasize this does not indicate a reversal in the overall labor market recovery, which continues following disruptions caused by the "Roaring Lion" military operation in March-April.

In May 2026, the Central Bureau of Statistics reported 150,200 job vacancies, up by 8,400 from the previous month, resulting in a ratio of roughly four open positions for every five unemployed individuals. This suggests a gradual return to a tighter labor market. The composition of unemployed workers is also shifting, with 20.4% belonging to higher socioeconomic clusters (8-10), up 3.4 percentage points from July 2023, and 20.3% holding academic professions. However, the rise in academic unemployment is mainly due to summer layoffs in education, with high school teachers’ unemployment increasing by 43.7% from May to July.

The tech sector saw a 3% rise in unemployed professionals over two months, totaling about 17,000 in July. Women’s share of unemployed rose from 54.1% in June to 55.5% in July, largely driven by seasonal layoffs in education and other fields. Unemployment among the Haredi community increased by 24.4%, with notable rises in Haredi cities such as Modi’in Illit (from 2.6% to 4.1%), Beitar Illit, Elad, and Beit Shemesh. The highest unemployment rates were recorded in Rahat (6.0%), Umm al-Fahm (5.6%), Acre and Afula (4.7%), Kiryat Gat (4.6%), and Nazareth (4.5%). Conversely, lower rates were seen in Ramat Hasharon, Rishon LeZion, and Kfar Saba (around 2.3%).

The profile of benefit recipients is also changing, with unemployment benefit claimants rising from 55.3% in 2022 to 78.2% in early 2026, while income support claimants declined from 40.8% to 18.7% over the same period. The Employment Service highlights that many current unemployed workers are temporarily out of work due to seasonal or cyclical factors, such as summer breaks or security events, and are expected to re-enter employment quickly. Meanwhile, the number of long-term unemployed remains on a steady decline.