Salaries in Israel’s technology sector, which have always been high and used to seeing them always rise, took a hit in 2024, according to a comprehensive report by Esocia, a recruitment agency specializing in technology-related jobs. .
For the first time since the coronavirus pandemic, average salaries in Israel’s technology industry fell by 3% this year to a total of NIS 29,900 per month, according to a report released today. Although this is still 2.3 times the average wage in Israel, this decline is a significant departure from the upward trend of recent years.
The report also reveals that it is the future generations of Israeli industry that will be primarily affected. Young employees with less than two years of experience are in a particularly difficult situation. The average time it took them to find a job was at an all-time high of 11 months. The market for junior positions has shrunk from 300 jobs per month in 2023 to just a few jobs per month in 2024.
The report shows that the only employers currently hiring are large corporations and international companies, which prioritize recruiting talented candidates with degrees from top universities.
“Political and security uncertainties, declining investor confidence, and fluctuations in the global economy have depressed Israel’s technology industry, and export constraints and damage to competitiveness are also major challenges.” Eyal Solomon, CEO of Esocia, said.
The number of job openings decreased by 28% from 12,750 in December 2023 to 9,200 in December 2024. For the first time in a decade, the number of workers in the industry has barely increased. At the end of 2024, we had 417,000 employees, an increase of less than 1% from our total workforce of 413,000 at the end of 2023. This compares to an average annual growth rate of 4% last year.
“The increase in government spending due to the war has taken a huge toll on investor confidence,” Solomon said. “As is well known, the high-tech industry relies on investment from outside Israel, which has decreased by 60% compared to 2023. As a result, many startups have had to lay off employees. Due to difficulties in raising funds, revenue decreased. ”
signs of recovery
Still, there are some early signs of recovery. During the period in which the report was written, the number of job openings in the industry increased by 10%.
“The reduction in the intensity of fighting, the reduction in the number of active-duty reservists, and the political certainty in the United States after the election results are known present excellent opening conditions for 2025,” Solomon said.
“Treasury’s positive forecast of falling inflation and stable interest rates suggests that the market will correct itself and change trends in 2025, with the number of new entrants returning to the post-pandemic growth rate seen in 2022. “It will help bring back the number of jobs and, of course, capital raising,” he concluded.
Published by Globes, Israel Business News – en.globes.co.il – on December 26, 2024.
© Globes Publisher Itonut (1983) Ltd., Copyright 2024.
