Israel’s high-tech labor market has undergone a dramatic reversal over the past four years. At the height of the hiring boom in February 2022, there were 7.2 job openings for every job seeker in the sector. By September 2026, that ratio had fallen to 0.95, meaning that job seekers outnumbered available positions. The number of people looking for work in information and communications has risen 58% since September 2023, while the number of vacancies has increased by just 10%.
The deterioration is not limited to junior employees. The number of job seekers among software developers and applications analysts reached approximately 8,900 in October, compared with about 5,600 in September 2023. In 2026, 52% of job seekers in software-related occupations had at least five years of experience, up from 44% in 2019.
These figures are part of a broader weakening in the Israeli labor market, particularly among groups that have traditionally enjoyed stronger employment prospects. The ratio of job openings to job seekers among people with academic degrees fell from 0.8 in September 2023 to 0.7 in September 2026. Among managers, it remained at just 0.1, meaning that 10 unemployed managers were competing for every available position.
The figures come from the Employment Service’s October edition of its “Labor Market Pulse” report. It shows that the ratio of job openings to job seekers in high-tech has fallen from 1.35 to below 1 over the past three years, while a similar deterioration has been recorded among people with academic degrees.
A particularly sharp shift was recorded in the information and communications sector, which is closely associated with high-tech. Between September 2023 and September 2026, the number of vacancies increased from 8,800 to 9,700, a rise of approximately 10%. But the number of job seekers climbed from 6,500 to 10,300, an increase of 3,800, or 58%. As a result, the ratio of job openings to job seekers fell from 1.35 to 0.95.
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The contrast with February 2022 is stark. At the height of demand for high-tech workers, the sector had 19,878 recorded vacancies and just 2,750 job seekers, producing a ratio of 7.2 openings per job seeker.
Employment prospects vary considerably across other sectors. In industry and construction, the ratio of job openings to job seekers rose from 1.8 in September 2023, before the October 7 attack and the ensuing war, to 3.4 in September 2026. Among sales and service workers, it increased from 1.2 to 1.5 over the same period. In contrast, the overall ratio in high-tech has fallen below 1, meaning that more people are competing for jobs than there are positions available.
Employment Service Director General Inbal Mashash said the disparities across occupations point to “a widening gap between the qualifications, experience, and skills of job seekers and the needs of employers.”
The report also points to growing difficulty in finding work through increased use of unemployment benefits. This may reflect the declining number of vacancies relative to job seekers, as well as mismatches in skills or geographic location. Among older job seekers, who are entitled to up to 175 days of unemployment benefits, the average number of days used stood at 113.7 in 2025, compared with 128.1 in 2022. Among older job seekers with academic degrees, the figure increased from 125 to 131 days. Among younger job seekers, average use rose from 46.6 to 52.2 days. Increased use of unemployment benefits is also evident in occupations where demand for workers remains relatively high.
Across the economy, Israel recorded approximately 148,000 job openings in September 2026, alongside 169,000 job seekers registered with the Employment Service, according to seasonally adjusted figures. That translates into 0.87 job openings per job seeker, or roughly 87 vacancies for every 100 people seeking work.
When the ratio of job openings to job seekers exceeds 1, the labor market favors employees, as there are more available jobs than unemployed people. When the ratio falls below 1, employers have the upper hand, with more job seekers competing for each available position.
The number of job seekers rose slightly in the unadjusted figures, from 162,000 in September to 162,300 in October, an increase of about 300 people, or 0.2%. Seasonally adjusted figures, however, show a 2.3% decline, from 169,300 to 165,500. Compared with September 2023, the number of job seekers has remained broadly stable: 162,300 in October 2026, compared with 163,700 before the war.
The profile of job seekers has nevertheless changed significantly. The share from the more affluent socioeconomic clusters, 8-10, increased from 17.5% to 21.8%, while the share from the lower clusters, 1-3, fell from 39.8% to 34.9%.