Israeli high-tech exodus: 8,300 workers left since Oct. 7

By Al Mayadeen English
Source: Israeli media
Today 18:11

The Israel Innovation Authority report described the situation as "deeply concerning" and indicative of the state of the high-tech sector heading into 2025.

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Travelers check departing flights at Ben Gurion International Airport near Tel Aviv, on Tuesday, Dec. 31, 2024 (AP)

Around 8,300 workers in the high-tech sector—approximately 2.1% of the total Israeli high-tech workforce—have left "Israel" for a year or more between October 7, 2023, and July 2024, the Israeli newspaper Yedioth Ahronoth reported, citing a report by the Israel Innovation Authority.

The report described the situation as "deeply concerning" and indicative of the state of the high-tech sector heading into 2025, according to data released Monday morning by the Innovation Authority.

Additionally, Israeli high-tech companies now employ around 440,000 people abroad, compared to just 400,000 inside "Israel".

Based on census and exit data from "Israel", the report stated that the average monthly departure rate stands at 826 individuals, with a peak in October 2023 of 1,207 high-tech workers. The previous high, recorded in August 2023, was 966.

The report highlighted a rising trend of high-tech workers relocating abroad due to the political and security instability in "Israel". Unlike previous years, when employment growth in the high-tech sector outpaced other sectors, in the past year, it has slowed to match the overall economy.

According to the report, private Israeli high-tech companies (such as Waze, Gett, and Sygnia) now employ more than half of their staff—240,000 out of approximately 430,000—outside of "Israel", including research and development employees.

Significant portion of Israeli tech employees based abroad

In sectors such as marketing, sales, and customer service, which require language skills and familiarity with foreign markets, about 75% of staff are located outside "Israel".

The situation is "even more alarming" in publicly traded Israeli tech firms (such as Check Point, Nice, and Wix), which employ only 60,000 out of their 260,000 workers within "Israel".

In 2024 alone, all Israeli high-tech companies hired 4,500 research and development employees and 2,000 sales or marketing staff abroad.

According to the Innovation Authority, employment in the Israeli high-tech sector has stagnated since 2022, despite a shortage of 17,000 workers. For the first time, 2024 saw a net decrease of 5,000 employees in the sector. Between 2012 and 2022, the share of high-tech workers in the overall workforce grew rapidly, but over the past three years, it has remained steady at around 11.5%, with no significant change.

The report also noted a marked reduction in "administration and production" roles—positions that don’t require technical education or involvement in Research and development (R&D)—while job opportunities increasingly favor those with technical skills. This trend, the report warned, poses a potential threat to the broader business operations of Israeli tech firms.

Meanwhile, wage disparities between high-tech workers and the rest of the labor force continue to widen. In 2024, the average salary in high-tech reached 32,300 shekels, 2.8 times higher than the average wage across other sectors. This is attributed to the growing number of high-paid R&D positions and the decline in administrative and support roles.

The report also provides, for the first time, a comprehensive overview of employment in Israeli high-tech companies. Out of approximately 400,000 workers in the sector inside "Israel", around 250,000 are employed by Israeli companies (both public and private), about 90,000 work for multinational firms, and another 50,000 are employed in IT and tech service companies.

In 2024, the Israeli outlet The Marker reported that a new wave of layoffs in the high-tech sector is imminent, though currently on hold due to the ongoing war.

In 2023, Israeli media reported a growing number of Israeli high-tech professionals considering emigration in light of the government's controversial judicial overhaul, describing the situation as "at a low point not seen in years."

The New York Times also published a report titled "How the War With Hamas Has Damaged Israel’s Tech Firms and Economy," stressing that "Israel’s" tech sector—a cornerstone of its economy—has been hit hard by labor shortages and funding concerns, potentially leading to broader economic slowdown in 2024.