Israel Job Vacancies Rise to 148,000 in September Amid Labor Shortages
Israel's Central Bureau of Statistics reported that job vacancies rose 2.7% to 148,000 in September. The surge reflects severe labor shortages driven by reserve duty and restricted entry for Palestinian workers.
Israel's labor market continues to show a tight employment gap as the Central Bureau of Statistics (CBS) reported that the number of job vacancies rose by 2.7% in September. Vacancies increased from 144,100 in August to 148,000 on a seasonally adjusted basis, bringing levels back near the exceptionally high threshold of 150,000 following a temporary dip in August. The job vacancy rate relative to total employment also climbed from 4.33% to 4.42%.
Structural Labor Shortages and Historical Context
Before the COVID-19 pandemic in 2019, routine vacancy levels hovered between 90,000 and 100,000. However, the Israeli labor market has not experienced normalized conditions for 6.5 years. Following a gradual decline in 2023 down to 114,500 vacancies by the outbreak of the war-in-gaza, economic baselines shifted fundamentally. December recorded an all-time high of 152,900 vacancies since measurements began in 2009. Analysts note that high vacancy figures do not necessarily indicate economic prosperity. Similar post-pandemic spikes, such as 151,300 in August 2022, primarily reflected severe mismatches between candidate skills, geographic locations, and available roles.
Sector Breakdown and Hard-Hit Industries
Current market friction is largely attributed to extensive reserve military duty and restrictions on Palestinian workers entering from the West Bank. Data categorized by occupation reveals persistent difficulties in filling low-wage, entry-level positions:
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Hospitality and Catering: Approximately 13,500 vacancies for waiters, bartenders, and cooks, alongside 5,600 kitchen and institutional cleaning jobs.
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Construction and Logistics: Roughly 8,400 open construction jobs and 5,800 driving positions, representing a 10% increase over a two-month span.
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Tech Sector Stagnation: Software and engineering roles remain sluggish, with only 11,500 total engineering openings compared to roughly 20,000 in 2022, including just 6,200 software developer positions.
