Average wage in Israel increased and starts to accelerate: In August - amounted to NIS 12,258


by Ifi Reporter Category:Financial Nov 3, 2022

The rate of average wage increase in the economy is starting to accelerate. In August, the average wage in the economy for Israeli workers reached NIS 12,258 per month - a nominal increase of 4% compared to August 2021. For comparison, in July the rate of the wage increase was moderate and reached a level of 3.4% per year. This is according to the wage and income data in the economy published today (Thursday) by the Central Bureau of Statistics (CBS).
The Central Bureau of Statistics today also publishes partial data regarding the forecast of the average salary in the economy in September, from which it appears that the rate of salary increase has probably accelerated significantly more and reached a 4.6% increase in September 2022 compared to the previous year. According to CBS, the average salary in September 2022 for Israeli workers is NIS 12,205 per month.
The sharp rise in wages in the economy may be one of the consequences of inflation, but it may also have a negative effect on inflation. Price increases in the economy create pressure on wage levels. Such mutual effects may produce a dangerous situation of inflationary spiral, in which inflation causes wage increases, and this increase produces heavier inflationary pressures.
At this stage the wage increase is mainly in the business sector. So far, in the public sector wages have hardly changed since no new wage agreements have been signed for a long time. With the establishment of the government, the Histadrut demands to open negotiations on the framework agreements, within the framework of which the wages of public sector workers will increase.
Despite the acceleration of the rate of increase in nominal wages in August, in real terms wages still eroded at a rate of 0.6% compared to August 2021, and this is due to an inflation rate of 4.6%. However, if the September forecast does come true, it means that the wage increase in the economy completely offset the effects of inflation that month (4.6%).
Not everyone benefits equally from inflation compensation. The more significant erosion in wages is usually among the relatively weaker workers, while the stronger workers manage to compensate for the increase in inflation through sharper wage increases.
A pessimistic figure from the report to the Central Bureau of Statistics is the scope of salaried jobs in Israel - full-time or part-time employees who worked on one of the days of the month. In August 2022, there were 3.91 million salaried jobs in Israel - a decrease of 2.4% compared to July - possibly due to seasonal effects. However, even in September 2022, according to the partial data, there was a 0.6% decrease in the number of employees compared to August.
There is stability in the high-tech sector. The number of employees in the industry remained unchanged in August 2022 compared to the previous month, and 355.3 thousand employees were employed in the industry. However, this figure reflects an 8.7% increase in the number of employees compared to August 2021.
The average salary in high-tech also maintains stability at NIS 26,404 per month, a small increase compared to the salary of 26,336 in July 2022. This figure still reflects a decrease in salary in high-tech compared to the average salary that crossed the NIS 30,000 mark in early 2022.



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