Brian Blum
February 27, 2020, Updated March 1, 2020

Israeli tech firms employ 321,000 people, accounting for 9.2% of Israeli employees (up 8% from last year), according to the latest annual report by the Israel Innovation Authority (IIA) and Start-Up Nation Central.

The report revealed that the number of multinational R&D centers based in Israel increased 143 percent between 2010 and 2018. Employees at these centers are paid around 40% higher than their peers at domestic firms.

High-tech workers in Israel earn an average ₪22,479 ($6,534) a month, more than double the average of ₪9,345 for workers in the rest of Israel. High-tech wages increased by 27% over the past six years, compared with 15% for jobs outside the tech space.

According to the report, 27% of Israeli companies maintain development and quality assurance testing centers overseas, up from 22% in last year’s survey.

The need to offshore some high-tech work is a sign of the continuing shortage of engineering staff in Israel. The report estimates some 18,500 open tech positions as of July 2019 – an increase of 8% compared with July 2018.

To fill those slots, the report points to the importance of recruiting ultra-Orthodox, Arab and older employees. Israeli Arabs constituted 9% of the increase in high-tech employees between 2017 and 2018. Ultra-Orthodox workers made up another 5% of the increase. Ultra-Orthodox Israelis – primarily women – constitute 3% of the total number of high-tech workers in the country. Israelis over the age of 45 comprise 29% of the total.

The report reveals that employees who change jobs command a premium of between 1.5% and 8.6% over existing employees at a company in the same jobs. That might explain why the “voluntary departure” rate – employees who leave a job on their own accord – reached 10.2% of high-tech employees in 2018.

Approximately one-third of tech employees in Israel are women – but the report notes that the number hasn’t risen over the past year. Twenty-two percent of that total were in technology positions and 18% held technology management titles.

The report is based on data from the Central Bureau of Statistics, the IIA, the Planning and Budgeting Committee at the Council for Higher Education, Start-Up Nation Central, and a survey answered by 341 high-tech companies.

More on News

Fighting for Israel's truth

We cover what makes life in Israel so special — it's people. A non-profit organization, ISRAEL21c's team of journalists are committed to telling stories that humanize Israelis and show their positive impact on our world. You can bring these stories to life by making a donation of $6/month. 

Jason Harris

Jason Harris

Executive Director

Read more: