Unemployment in Israel's IT sector is rising – report
Over two months, the number of software developers and app analysts registered with the Employment Service rose by 9%, from 7,950 in May to 8,650 in July 2026. Overall high-tech unemployment increased only 3% (from 16.4k to 16.9k). The agency links the rise to mass unpaid leave in spring during Operation 'Lion's Roar'. The broader labor market is recovering: the trend indicator fell from 177.6k to 171.6k.
Israel's technology sector labor market shows a localized rise in unemployment: over a two-month period, the number of software developers and app analysts registered with the Employment Service grew by 9%, from 7,950 in May to 8,650 in July 2026. The total number of job seekers in high-tech rose only 3% over the same period, from 16.4 thousand to 16.9 thousand. All growth is concentrated in the segment of programmers and systems analysts, while in other high-tech professional groups the number of applicants declined. Employment Service representatives urge caution against concluding a sustained negative trend, pointing to possible distortion of figures due to mass unpaid leave in spring 2026 during the military operation 'Lion's Roar'. Meanwhile, the macroeconomic situation in the labor market overall continues to recover. Despite an increase in registered unemployed from 169 thousand in June to 173.5 thousand in July (seasonally unadjusted), the specialized trend indicator fell from 177.6 thousand to 171.6 thousand. Employment Service Director General Inbal Mashash explained that the July rise is technical, due to seasonal layoffs in education, while the overall trajectory reflects a confident recovery of the labor market.