A report published by the specialized Israeli newspaper Globes revealed the continued decline in the salaries of workers in the technology sector in Israel, where the market suffers from a noticeable contraction in job opportunities, which coincides with the high rates of inflation and the increase in the cost of living in the country.
The report stated that this decline came despite previous expectations of high wages to keep pace with high prices. However, the data indicates that the year 2024 was an exceptional year in the history of the sector, as it is the first in many years that did not witness any increase in wages. On the contrary, it recorded an unprecedented decrease in salaries, which reflects a more difficult economic reality for technology workers. .
The report pointed out that the decline was not limited to the average wages, but also extended to the decline in the number of vacancies, which reflects a wide -ranging stagnation within the sector, which was the main driver of Israeli economic growth during the past decade.
This change in the dynamics of the technological labor market – according to the newspaper – reflects deeper transformations in the structure of the Israeli economy, as companies have become more cautious in employment, and seek to reduce their operational costs in light of the uncertainty that surrounds the local and global economy.
Wages decreased despite the high prices
According to the data of the Central Bureau of Statistics, which was conveyed by Globes, the average monthly salary for workers in the technology sector decreased to less than 30,000 shekels (8200 dollars) at the end of 2024, after he had exceeded this limit for several months.
The report stated that the average monthly salary had reached 26,428 shekels (7220 dollars) at the end of 2021, and rose to 27,787 shekels (7590 dollars) at the end of 2022, then reached 29 thousand and 826 shekels (8150 dollars) at the end of 2023. However, the year 2024 witnessed a decrease of the first of its kind, with the average salary of 29,736 Chicks ($ 8125).
The salaries of software developers also declined to 31 thousand and 100 shekels (8,500 dollars) after they had exceeded 33,000 shekels ($ 9,000) between June and September 2024, which brought them back to the levels registered in 2023.
https://www.youtube.com/watch?v=t-rpehtyaa
The number of workers in the sector decreased
Globes explained that the number of workers in the technology sector has also witnessed a decrease, as it declined from 400 thousand employees in most of the months of 2024 to between 398 thousand and 399 thousand employees with the beginning of 2025.
The number of software developers also recorded a decrease from 218 thousand to 217 thousand between summer and autumn, while the number of engineers and researchers in research and development reached about 50 thousand employees, which is the lowest level in a decade.
In comparison between November 2024 data and the period before the war, the report decreased by 33% in the number of vacancies for network engineers, 11% in engineering and technical technologies, 5% in public engineering, and 1% in software development.
Transformations in the labor market
Eyal Solomon, CEO of Ethasa Employment Agency, in his speech to Jlobes, pointed out that the low salaries of the technology sector during the past six months ranged between 3% and 5%, but he stressed that the actual effect may be higher due to the high cost of living. He added: “We are in an unprecedented period, as changing the job no longer means an increase in salary as was the case in the past.”
The report pointed out that the salaries of “Fall Stack” engineers, who were receiving 38 thousand to 41 thousand shekels (10400-11200 dollars), fell to 35 thousand shekels (9600 A dollar), the salaries of fixed software engineers also witnessed a decrease from 50 thousand shekels (13700 dollars) to 41 thousand shekels (11200 dollars).
https://www.youtube.com/watch?v=vhcgrxt3p1g
The disappearance of rewards and bonuses
Globes stated that the rewards that were offered to the new employees disappeared completely, and companies are no longer making extensive efforts to attract talents as it was happening in the past. Solomon said: “Today’s employment companies do not care if the candidate rejects the job offer, because there is always another person ready to take over.
For his part, Timur Shabtai, a human resources and salary consultant, explained that the labor market has become more selective, as highly skilled employees only get salaries in salaries, while salaries are still in general in a state of decline.
The report also indicated the emergence of two new phenomena in the Israeli labor market:
- The Big Stay: Employees prefer to stay in their current jobs for fear of economic fluctuations.
- “Quiet Quitting”: where employees perform the minimum required work without making an additional effort due to low incentives and the absence of wages increases.
According to Globes, the decline in the number of startups and the increase in the number of job seekers prompted companies to reduce costs instead of expanding employment opportunities, as they are looking for ways to pay lower salaries for each job, which reflects an increasing stagnation in the technological labor market inside Israel.
