In October 2023, after the outbreak of the war, the average salary in Israel was NIS 12,488, 5.9% higher than in October 2022, the Central Bureau of Statistics reports, according to initial estimates.
At the same time the number of jobs in the Israeli economy in October 2023 fell 1% from October 2022 and 1.9% from September 2023. If foreign workers are taken into account there was a fall of 3.1% in the number jobs in October 2023 compared with the preceding month.
It is possible that the increase in salaries actually stems from the reduction in the number of jobs due to the war, because those who lost their jobs were mainly low-wage workers. A similar effect was recorded during the Covid pandemic, in which the average salary artificially increased due to a reduction in the number of low-paying jobs.
On the eve of the war in September 2023, the average salary rose 5.6% from September 2022. The average salary in fixed prices (when the Consumer Price Index is taken into account) was up 1.7% from September 2022.
The number of jobs in the Israeli economy was 3,959,000 in September 2023 up 1.1% from 3,917,000 in September 2022 and down 1.2% from 4,006,000 in August 2023.
Salaries have risen strongly in the high-tech sector. In September 2023 the average salary in the high-tech sector was NIS 29,678, up 7.4% from September 2022. At the same time the number of jobs in the sector remained virtually unchanged from last year at 10% of the workforce.
Published by Globes, Israel business news - en.globes.co.il - on December 4, 2023.
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