Pay in Israel's tech sector falls

Declining tech industry pay  credit: Ussama Azam Unsplash
Declining tech industry pay credit: Ussama Azam Unsplash

According to a report by placement company Ethosia, junior tech workers are having a particularly tough time.

Salaries in Israel’s technology sector, which have always been high and which we have become accustomed to see constantly going higher, took a hit in 2024, according to a comprehensive report from placement company Ethosia, which specializes in technology jobs.

According to the report released today, for the first time since the Covid pandemic, average pay in the technology industry in Israel fell, by 3% this year, to NIS 29,900 gross monthly. This is still 2.3 times the average wage in Israel, but the decline is a significant deviation from the rising trend of recent years.

The report also reveals that those mainly impacted are the Israeli industry’s future generation. Junior employees with less than two years’ experience are in a particularly tough situation. The average time taken for them to find jobs has reached a record eleven months. From 300 junior positions a month in 2023, the market has shrunk to just a handful a month in 2024.

The report finds that the only employers currently hiring are large and international companies, and they show a preference for recruiting outstanding candidates with degrees from leading universities.

"Political and security uncertainty, a decline in investor confidence, and volatility in the global economy, have depressed the Israeli technology industry, with constraints on exports and damage to competitiveness also presenting a significant challenge," says Ethosia CEO Eyal Solomon.

The number of job vacancies sank from 12,750 in December 2023 to 9,200 in December 2024, a decline of 28%. For the first time in a decade, the number of workers in the industry has hardly grown. At the end of 2024, the workforce numbered 417,000, representing a rise of less than 1% from the 413,000 total at the end of 2023. This compares with average annual growth of 4% in previous years.

"The rise in government spending because of the war has hit investor confidence hard," Solomon says. "As is well known, the high-tech industry is dependent on investment from outside Israel, and this has declined by 60% in comparison with 2023. As a result, many startups have had to lay off employees, and a substantial number have shut down because of the difficulty in raising capital."

Signs of recovery

All the same, there are some initial signs of recovery: during the time that the report was written, the number of job vacancies in the industry rose 10%.

"The decline in the intensity of the fighting and in the number of reservists on active duty, along with political certainty in the US after the election results became known, represent excellent opening conditions for 2025," says Solomon.

"Positive forecasts from the Ministry of Finance for lower inflation and stability in interest rates will help the market to correct itself and change trend in 2025, and to return to the growth rates seen in 2022 after the pandemic, in numbers of new companies, in the number of jobs, and of course a recovery in capital raising," he concluded.

Published by Globes, Israel business news - en.globes.co.il - on December 26, 2024.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.

Declining tech industry pay  credit: Ussama Azam Unsplash
Declining tech industry pay credit: Ussama Azam Unsplash
Yitzhak Tshuva credit: Gidon Levy and Tali Bogdanovsky Isracard shareholders approve acquisition by Delek

For the deal to go through, approval is now needed from the Supervisor of Banks and the Israel Competition Authority.

Air Canada Photo: Shutterstock Air Canada to resume Israel flights in June

The Canadian airline will resume Toronto-Tel Aviv flights on June 8 and Montreal-Tel Aviv flights in August.

NICE CEO Scott Russell credit: SAP NICE Systems falls sharply on disappointing 2025 guidance

NICE sees $693-703 million revenue in the first quarter of 2025, up 6% from the corresponding quarter of 2024, with non-GAAP earnings per share of $2.78-2.88 - 3.8% below the analysts' consensus for revenue and 2.4% below for profit.

Tel Aviv credit: Shutterstock Urban renewal plan approved in heart of Tel Aviv

The plan for the Hahashmal neighborhood opposite the Old Central Bus Station includes a 30-floor tower.

Smartshooter credit: Smartshooter Germany buys Kibbutz Yagur's Smartshooter AI sights

The product family includes systems mounted on personal rifles, remotely controlled systems, and systems carried by vehicles, robots, and even drones.

Chinese ship in Suez Canal credit: Suez Canal Authority Direct shipping to Israel could resume soon

The first shipments of vehicles are likely to reach Israel via the Suez Canal in the coming months.

Sde Dov credit: Guy Yehieli Sde Dov land prices down over 40%

Four huge tenders for almost 4,000 homes, which have been successfully marketed in the north Tel Aviv district, reflect prices over 40% lower than in 2022.

Wix president Nir Zohar credit: Alan Tzatzkin Wix provides cautious 2025 guidance after strong 2024

The Israeli website building platform company reported its first-ever GAAP operating profit in 2024.

Saar Yoskovitz and Gal Shaul  / Photo: Augury Israeli industrial AI co Augury raises $75m

The new round represents an increase in valuation for Augury, which maintains its position as a ‘unicorn’ startup.

Eitan Yochananof and Eyal Ravid credit: Eyal Izhar and Tali Bogdanovsky Regulator indicts Victory, Yochananof CEOs over price fixing

The Israel Competition Authority today issued first indictments, following the food price fixing investigation.

Shekel credit: Shutterstock Vladirina 32 Shekel gains continue as Gaza talks progress

The shekel continues to trade at its strongest levels against the dollar since early 2023.

New York credit: Shutterstock Tel Aviv - New York fares stay high despite US airlines return

Ticket prices to the US will continue to cost at least $1,200 return, according to Ophir Tours, with most fares ranging between $1,500 and $2,000, or even more.

Greenfield Partners team credit: Eyal Toueg Greenfield Partners closes $400m third fund

The funds were raised from institutional investors in Israel, the US, Europe and Asia and brings the total funds under management to more than $1 billion.

Blockaid founders Ido Ben-Natan and Raz Niv credit: Liron Weissman Israeli onchain security co Blockaid raises $50m

Blockaid protects the largest companies building onchain, including Coinbase, Metamask, Stellar, Uniswap, and World App.

Air Haifa  credit: ATR Air Haifa to launch Paphos flights

New Israeli airline Air Haifa will launch a new route between Haifa and Paphos in Cyprus on April 3, 2025 with six weekly flights.

Bladeranger Deepsolar credit: PR Bladeranger divests Deepsolar to Painreform in strategic move

Deepsolar, acquired by Bladeranger in early 2023, is a sophisticated software solution designed to optimize the management of photovoltaic solar energy fields.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018