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Israeli Employers Struggle to Raise Wages Despite Historic Job Vacancies

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דווח לראשונה בGlobes · Jul 8, 2026

מה קרה

Despite a record 152,000 job vacancies in Israel by the end of 2025, real wage growth remained minimal at 0.3%. The Ministry of Labor cites restrained public sector wages, subdued high-tech salary increases, and increased foreign labor in low-wage sectors as key factors. Security concerns and economic uncertainty also limit employers' willingness to raise wages significantly.

01Job vacancies in Israel rose 10% to 152,000 by end of 2025, a historic high.
02Real average wages increased only 0.3% in 2025 despite labor shortages.
03Public sector wage cuts and restrained high-tech pay growth slowed overall wage increases.
04High-tech sector wage growth was just 0.8%, affected by economic and security uncertainty.
05Rising foreign worker employment in low-wage sectors reduces incentives to raise Israeli wages.
06Reserve military call-ups continue to tighten the labor market beyond wage issues.

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Lior Bakalo