Tech industry layoffs reach record levels, impacting core workers

The number of job seekers in Israel's tech industry has doubled since 2019, reaching 14,961 in April. The figure represents a trend that has worsened since 2022, affecting core roles such as developers, analysts, and systems managers. Mid-career workers aged 36-45 are hardest hit, with average salaries rising by 39% since 2022. The proportion of job seekers earning NIS 25,600 to NIS 43,800 monthly increased from 15% to 40% since August 2022.

The number of job seekers in Israel's tech industry has more than doubled since 2019, reaching 14,961 in April 2025. This trend, which has worsened since 2022, is affecting core roles such as developers, analysts, and systems managers. Mid-career workers aged 36-45 are particularly hard hit, with their average salaries rising by 39% since 2022. The proportion of job seekers earning between NIS 25,600 and NIS 43,800 per month has increased from 15% to 40% since August 2022 [1].

The crisis is not limited to junior employees; veteran workers are also being laid off, challenging the assumption that the increase in job seekers is primarily due to junior employees. The Employment Service notes that many juniors are likely underrepresented in the data because they are younger, have shorter benefit eligibility, or have not yet completed the required training period to claim unemployment benefits [1].

The rise in unemployed high-tech workers is striking given the relative stability in the total number of employed high-tech workers over the past two years. As of 2025, there are 391,000 people employed in the high-tech industry itself and 163,000 working in high-tech roles outside the industry, a total of 554,000. Back in 2019, these numbers were 306,000 and 146,000, respectively (452,000 in total), a 22.5% increase in total employment. Yet, the number of job seekers has more than doubled in the same period [1].

The crisis is also affecting the balance between job seekers and open positions. In January 2019, there were 1.6 open positions for every unemployed person in high-tech. By April 2024, this ratio dropped to 0.9, meaning there were more job seekers than open roles. This trend continues in April 2025 [1].

The crisis has also hit the relatively strong middle class in high-tech, skilled, experienced workers who were highly sought after just two years ago. The average salary of high-tech job seekers increased by 39.3% between January 2022 and April 2025, compared to a 24% increase for all employees in the industry [1].

The situation is exacerbated by the fact that the defense industries are currently absorbing many laid-off tech workers. However, the next crisis could come when global demand for defense products declines, and these industries begin laying people off as well [1].

The Employment Service is working to maximize what demand remains through partnerships with employers. They are focusing on training high-tech workers to adapt their skills to enter the cyber and defense sectors, launching training programs in collaboration with the Innovation Authority and employers [1].

References:
[1] https://www.calcalistech.com/ctechnews/article/hkjtu0e8ge
[2] https://www.reuters.com/world/middle-east/planned-nvidia-expansion-israel-prompts-multiple-offers-sites-2025-07-09/