Israel's Labor Market Is Changing — Who Has Become More Among the Unemployed

In July 2026, Israel's labor market continued to recover, but the number of job seekers rose by 4,600 to 173,500 due to seasonal layoffs in education. Seasonally adjusted, the figure fell to 171,600. Employers offered 150,200 vacancies. The share of job seekers with academic education rose by 20.3%, and those with high socio-economic status by 20.4%. Women made up 55.5% of job seekers, with growth among the ultra-Orthodox at 24.4%. The highest rates were in Rahat (6.0%) and Umm al-Fahm (5.6%). The share of unemployment benefit recipients reached 78.2%, and income support recipients 18.7%.

In July 2026, Israel's labor market continued to recover, but the number of registered job seekers rose by about 4,600 compared to June, reaching 173,500. The main reason was seasonal layoffs in the education system, accounting for about 20% of new registrations, or 8,100 people. Seasonally adjusted, the estimated number of job seekers fell to 171,600. Demand for workers grew: employers offered about 150,200 vacancies, giving about 0.81 vacancies per job seeker. The profile of job seekers is changing: the share of people with academic education increased by 20.3%, and the share of those with high socio-economic status by 20.4%. Women made up 55.5% of all registered job seekers. Growth was recorded among the ultra-Orthodox community: the figure increased by 24.4%, mainly in Modi'in Illit and Beitar Illit. Regional differences persist: the highest rates of job seekers are in Rahat (6.0%) and Umm al-Fahm (5.6%), while in central cities it is about 2.3%. Chronic unemployment is giving way to short-term fluctuations: the share of unemployment benefit recipients reached 78.2% (a high since the beginning of the year), while the share of income support recipients fell to 18.7% (a low for the period). This indicates that most of those seeking support register for a short period and are expected to return to work soon.