Salaries in Israel’s technology sector, which have always been high and which we are accustomed to seeing constantly rise, will take a hit in 2024, according to a comprehensive report from recruitment firm Ethosia, which specializes in technology jobs.
According to the report released today, for the first time since the Covid pandemic, the average wage in the technology industry in Israel decreased by 3% this year, reaching NIS 29,900 per month. This figure is still equivalent to 2.3 times the average wage in Israel, but the decline represents a significant deviation from the upward trend in recent years.
The report also reveals that those mainly affected are the future generation of Israeli industry. Entry-level employees with less than two years of experience face a particularly difficult situation. The average time it takes to search for a job has reached a record high of eleven months. From 300 entry-level jobs per month in 2023, the market has shrunk to just a few per month in 2024.
The report finds that the only employers currently hiring are large, global companies, and they show a preference for hiring outstanding candidates with degrees from leading universities.
“Political and security uncertainty, low investor confidence, and volatility in the global economy have stagnated the Israeli technology industry, and restrictions on exports and damage to competitiveness represent a major challenge,” says Eyal Solomon, CEO of Ethosia.
The number of job vacancies decreased from 12,750 in December 2023 to 9,200 in December 2024, a decrease of 28%. For the first time in a decade, the number of workers in the industry has barely increased. At the end of 2024, the workforce reached 417,000 people, representing an increase of less than 1% from the total 413,000 at the end of 2023. This compares to an average annual growth of 4% in previous years.
“The rise in government spending due to the war has severely damaged investor confidence,” says Solomon. “As is known, the high-tech industry depends on investment from outside Israel, and this investment has decreased by 60% compared to 2023. As a result, many startups were forced to lay off employees, and a large number of them closed their doors. Due to the difficulty of raising capital. “
Signs of recovery
However, there are some tentative signs of recovery: during the reporting period, the number of job openings in the industry rose by 10%.
“The decline in the intensity of combat and in the number of reservists on active duty, coupled with the political certainty in the United States after the election results come in, represent excellent conditions for an opening to 2025,” says Solomon.
“The positive expectations from the Ministry of Finance for low inflation and stable interest rates will help the market correct itself and change its direction in 2025, and return to the growth rates we saw in 2022 after the pandemic, in the numbers of new companies, in the number of jobs and of course the recovery of capital increases.”
Published by Globes, Israel Business News – en.globes.co.il – on December 26, 2024.
© Copyright Globes Publisher Itonut (1983) Ltd., 2024.
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