The Israeli economic platform Globes quoted a comprehensive report issued by the recruitment company “Ethosia” that the technology sector in Israel witnessed a noticeable decline in salaries during the year 2024, which is a significant deviation from the upward trend that has continued for years.
Low salaries and career opportunities
The report stated that the average total monthly salaries in the sector decreased by 3%, reaching 29,900 shekels (about 8,100 dollars), which still represents 2.3 times the average wages in Israel, according to Globes.
However, this decline reflects significant challenges, especially for young people who represent the industry’s future generation.
The report states that new employees with less than two years of experience face unprecedented difficulties, as the average time needed to find a job has risen to 11 months, a record level according to Globes.
Compared to 2023, which saw 300 job opportunities per month for new employees, the market will shrink to very few monthly opportunities in 2024.
Reasons for decline
Eyal Solomon, CEO of Ethosia, said, “Political and security uncertainty, low investor confidence, and fluctuations in the global economy have severely impacted the Israeli technology industry. Restrictions on exports and damage to competitiveness pose major challenges.”
The number of job vacancies decreased from 12,750 jobs in December 2023 to 9,200 jobs in December 2024, representing a decline of 28%. For the first time in a decade, the sector witnessed no significant growth in the number of employees, as the number of employees at the end of 2024 reached about 417,000, an increase of less than 1% over the total number in 2023.
Solomon added, “The increase in government spending due to the war greatly affected investor confidence. With foreign investment declining by 60% compared to 2023, many startups were forced to lay off employees, and a large number of them closed due to difficulty raising capital.”
