Israel's average salary (at current prices) was NIS 11,773 in 2021, 2.3% higher than in 2020, the Central Bureau of Statistics reports. In real terms, after taking inflation into account, the average salary only rose by 0.8% last year, reflecting a tightening of the job market.
The shortage of available employees, and the fall in unemployment to 3.9% in January, have put upward pressures on salaries, as companies need to hire people, especially in the tech sector. The average salary in the tech sector was NIS 26,494 in 2021, up 6.5% from 2020. On the other hand, the average salary was pulled down by the tourist services sector, which is yet to recover from the Covid pandemic.
Inflation in 2021 was 2.8% and since then annual inflation has risen to 3.1%, above the Bank of Israel's annual target range of between 1% and 3%.
Published by Globes, Israel business news - en.globes.co.il - on March 3, 2022.
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