The Central Bureau of Statistics reports a change in trend in the technology labor market. After several months of declining average gross salaries, a modest rise of 0.7% was recorded, from NIS 26,878 monthly in May to NIS 27,066 in June.
Pay in Israel’s technology sector reached a peak in February this year, when the average monthly gross salary surpassed NIS 30,000 for the first time, reaching NIS 30,049. From March onwards, salaries began to decline, with the average falling to NIS 29,772 that month, to NIS 27,685 in April, and to NIS 26,878 in May, down 10.6% from the peak.
Looking at the figures year-on-year, however, tech salaries continue to rise, and at an ever increasing pace. Although an atmosphere of crisis descended on the industry in the second and third quarters of 2022, as interest rates rose and the market caps of public companies, and valuations of some privately-held ones, fell sharply, the average monthly gross salary in the technology sector was 8.1% higher in June this year than in the same month last year. June 2021 was the best month ever for investment in privately-held Israeli technology companies and for offerings by Israeli companies in New York.
The picture for pay is not uniform across all sub-sectors. In scientific research and development, the average salary fell from NIS 30,185 monthly in May this year to NIS 29,240 in June, a decline of nearly NIS 1,000 within one month.
The rise in pay appears to be driven by three sub-sectors: programmers, whose average monthly salary rose from NIS 28,594 in May to NIS 29,105 in June; pharmaceuticals industry workers, whose average salary rose from NIS 19.464 in May to NIS 21,067 in June; and telecommunications company workers, who represent less than 5% of the workforce in the sector, and whose average monthly pay recorded the largest jump, up 19% in one month to NIS 18,625 in June.
Published by Globes, Israel business news - en.globes.co.il - on September 5, 2022.
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