"Summer layoffs" and the cities with the lowest number of job seekers

Employment Service data for July 2026 indicate a continued recovery of the labor market, alongside a seasonal increase in the number of job seekers. The number of registered individuals rose from about 169 thousand in June to about 173.5 thousand in July - an addition of about 4.6 thousand.

The Employment Service emphasizes that the monthly increase does not indicate a change in the direction of the labor market and is largely explained by the "summer layoffs" phenomenon - a seasonal phenomenon characteristic of the summer months and concerning mainly education system workers and other professions affected by summer vacation. Out of about 40 thousand new job seekers who registered in July, about 8.1 thousand were summer layoffs - about 20% of all new registrants.

At the same time, the trend figure for job seekers continued to decline, from about 177.6 thousand in June to about 171.6 thousand in July. The Employment Service notes that the data are still affected by the unusual spike in March-April following Operation "Lion's Roar", and therefore the trend should be examined over time and not based on the monthly change alone.

Strengthening demand for workers

The recovery is also evident on the demand side. According to the Central Bureau of Statistics, in May 2026 the number of job vacancies stood at about 150.2 thousand - an increase of about 8.4 thousand compared to the previous month.

The ratio between job vacancies and the number of job seekers stood at about 0.81, meaning about four job vacancies for every five job seekers. The Employment Service notes that the combination of the decline in the trend figure and the recovery in job vacancies indicates a gradual return to a tighter labor market, after the shock recorded in the spring.

The effect of summer is particularly evident in the composition of job seekers, and mainly among women, education workers, and the Haredi society. The rate of women out of all job seekers rose from 54.1% in June to 55.5% in July, and among new registrants, women constituted about 58% - an increase related mainly to summer layoffs in the education system.

The weight of those with academic occupations rose to about 20.3% of all job seekers, but the Employment Service emphasizes that this should not be interpreted as a broad deterioration in the employment of academics. A significant part of the increase is explained as summer layoffs in education.

Thus, the number of teachers in post-primary education among job seekers rose between May and July by about 43.7%, from about 2.3 thousand to about 3.3 thousand. Alongside this, an increase was also recorded among software developers, application analysts, and professionals in the field of databases and networks; the number of job seekers in high-tech stood in July at about 17 thousand - an increase of about 3% in two months.

The number of job seekers from the Haredi society rose in July by about 24.4%, mainly in Haredi localities: in Modi'in Illit from 2.6% to 4.1%, in Beitar Illit from 3.2% to 4.4%, in El'ad from 2.3% to 3.7%, and in Beit Shemesh from 3.5% to 4.3%. Here too, the Employment Service emphasizes that the increase is seasonal and consistent with the summer layoff pattern, and does not indicate a structural deterioration.

In a broader context, a change in the composition of job seekers has continued in recent years: in July 2026, about 20.4% of them belonged to the high socio-economic clusters (8–10) - a rate that is about 3.4 percent higher compared to July 2023.

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Geographic gaps continue

Alongside seasonal fluctuations, structural gaps between local labor markets continue. The highest rates of job seekers were recorded in Rahat (about 6.0%), Umm al-Fahm (about 5.6%), Akko and Afula (about 4.7%), Kiryat Gat (about 4.6%), and Nazareth (about 4.5%).

Conversely, the lowest rates were recorded in Ramat HaSharon, Rishon LeZion, and Kfar Saba (about 2.3% in each), and in Ra'anana, Holon, Eilat, and Ness Ziona (about 2.5%). The Employment Service notes that the gaps between Arab localities and peripheral localities versus strong localities in the center remained as they were even after the fading of the effect of security shocks.

Change in the composition of benefit recipients

The change in the labor market is also evident in the composition of benefit recipients: the weight of unemployment benefit claimants has risen consistently, while the weight of income support claimants has fallen. In annual average terms, the rate of unemployment benefit claimants rose from about 55.3% in 2022 to about 73.5% in 2025, and reached a peak of about 78.2% in January-July 2026. At the same time, the rate of income support claimants plummeted from about 40.8% in 2022 to about 22.7% in 2025, and to a low of only about 18.7% in the first seven months of 2026.

The Employment Service explains that the trend stems from a consistent change in the composition of applicants: the labor market is characterized today by a higher rate of workers who arrive at it due to temporary or cyclical fluctuations only - such as summer vacation or a security crisis - at the end of which most of them are expected to integrate back quickly. This is alongside a continued decline in the number of job seekers who are in long-term and chronic unemployment.

The Employment Service notes that the July data present a complex but clear picture: the number of job seekers rose, but mainly due to summer layoffs, while the trend of job seekers continued to decline and the demand for workers strengthened. Alongside the recovery, there are still significant gaps between populations, professions, and regions, and therefore the current challenge is not only to return the number of job seekers to the levels that preceded the shocks, but to improve the match between job seekers and job vacancies and ensure that the recovery reaches all parts of the market.

Employment Service CEO, Inbal Mashash: "The overall picture is of a labor market that is continuing in a recovery process, even if the way back to routine is not uniform between populations and regions. The role of the Employment Service is to ensure that this recovery is translated into actual employment opportunities for job seekers."