Israel's Employment Service Forecasts Sharp Rise in High-Tech Job Seekers Amid AI Impact

A new report from Israel's Employment Service reveals a significant increase in the number of job seekers in the high-tech sector, reaching a historic peak of approximately 16,340 in May 2026. The proportion of high-tech workers among all job seekers in Israel rose from about 9% in recent years to 11% in May. The report highlights a strong correlation between the rapid development of artificial intelligence (AI) technologies and changes in the local high-tech labor market.

Since the launch of OpenAI's ChatGPT at the end of 2022, the share of high-tech job seekers nearly tripled, climbing from 4% to 11%. Specifically, software developers who frequently use AI in their work saw an 18% increase in unemployment since 2022, compared to only a 3% rise among other high-tech workers exposed to AI. This suggests that AI is primarily affecting programming roles, which are most susceptible to automation or AI assistance.

Contrary to common belief that AI mainly impacts junior programmers, the data shows a 43% increase in unemployed workers with up to four years of experience and a much larger 181% increase among those with over eight years of experience. However, the absolute numbers remain higher for less experienced workers, with about 8,000 unemployed juniors versus 1,750 seniors as of June.

The Employment Service developed a statistical model forecasting that the number of high-tech job seekers will continue to rise gradually, reaching around 19,700 in August due to seasonal factors, before moderating to approximately 16,750 by December. These projections include an upper limit estimate of about 25,300 to 25,500 job seekers in those months.

Employment Service CEO Einbal Mashash emphasized that the high-tech labor market is undergoing a profound transformation driven by technological advances, especially AI, which is reshaping demand and employment characteristics in the sector.