Tech Job Seekers Nearly Triple Since ChatGPT Launch, Software Workers Most Affected

In May 2023, the number of job seekers from Israel's high-tech sector reached a record 16,300, marking a significant rise since the launch of ChatGPT in November 2022. The proportion of high-tech job seekers among all unemployed nearly tripled from 4% in 2022 to 11% this year. Half of these job seekers are software professionals, who are particularly exposed to the impacts of artificial intelligence.

A study by Dr. Gal Zohar, head of research at the Employment Service, and economist Yaakov Forman highlights that the number of high-tech job seekers more than doubled over six years, from an average of 7,700 monthly in 2019 to a historic peak of 16,300 in May 2023. The Employment Service projects this figure to reach 16,800 by year-end, although the growth rate has slowed.

Despite the increase in job seekers, the high-tech workforce nearly doubled from 213,000 in 2012 to 396,000 in 2023, with a forecast of 404,000 in 2025. Had the previous decade's growth rate continued, the sector would have employed about 461,000 by 2025, indicating a slowdown but not a collapse.

The researchers found a correlation between the rise of AI and the surge in high-tech unemployment, especially among software workers, but did not establish causation. Software professionals comprised 49% of high-tech job seekers in May 2023, reflecting their high exposure to AI. Engineering and science workers made up 19%, while management, sales, and design roles accounted for about 10%. Since 2019, software job seekers increased by 109%, compared to 83% among other high-tech workers and 41.5% across the general workforce.

Inbal Mashash, CEO of the Employment Service, emphasized efforts to integrate high-tech job seekers into non-tech sectors, benefiting both the individuals and the broader Israeli economy.