CBS: Signs of a crisis in the high-tech sector - salary decreased by about 8% to NIS 27,684,000

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by Ifi Reporter Category:Hitech Jul 4, 2022

Signs of a crisis in the high-tech sector are strengthening: the increase in the number of workers in the high-tech industry was halted in April. The number of jobs filled in the field reached 377.9 thousand in April - a decrease of 0.2% in jobs compared to March 2022. This is according to data published today (Monday) in the Central Bureau of Statistics (CBS).
This is the first drop in the number of high-tech staffed jobs after eight months of continuous growth. At the same time, after the March data recorded a record average wage in the industry, which first crossed the NIS 30,000 threshold per month, the average wage shrank sharply in April 2022 and reached NIS 27,684,000 - a sharp decrease of about 8% in one month.
The decline in the number of jobs and wages in high-tech may signal the intensification of the crisis in the industry, against the background of the falls in technology shares in the financial markets. Against the background of reports of widespread waves of layoffs in high-tech in recent weeks, it is possible that the number of jobs will continue to decline. On the other hand, it is possible that the decrease in wages and the number of employees is due to the seasonal effects of the Passover period.
The data on high-tech jobs will make it difficult for the government to implement the stated policy of increasing the number of jobs in the industry and their share in the labor market to 15%. As of April, the number of jobs remained similar to March - 9.8% of all jobs in the economy were in high-tech.
The CBS also published today the data on the average wage in the economy, which reached NIS 12,061 per month in April 2022. This figure reflects a decrease compared to the data in March this year, but it is also a seasonal decrease that is probably due to the holiday season. Partly this month, compared with April 2021. There was a 3.8% increase in the average wage in the economy.
The total number of jobs in Israel in April, according to Social Security data (including part-time jobs or of people who worked part of the month), reached 3.864 million jobs. Although this is a seasonal decrease compared to March, compared to the previous year, to April 2021, the number of jobs jumped by 9.4%.
At the same time, the CBS today published unemployment data for the first half of June, which indicate a very low unemployment rate - with some volatility in the data. Thus, in the second half of May 2022 there was a slight increase in the narrow unemployment rate to 3.7%, mainly due to growth In the overall participation rate in the labor market to 64.2%, on the other hand, in the first half of June the narrow unemployment rate fell to 3%, while the participation rate actually climbed slightly to 64.3%.
Accordingly, about 30,000 workers were added to the economy and the number of employed persons reached 4.161 million employed persons in the first half of June. In any case, the bottom line is that there are currently no signs of unemployment in the Israeli labor market.
The low unemployment figures are especially important for the Bank of Israel, which is due to make a decision today regarding the interest rate in the economy. According to all estimates, the Bank of Israel will make a sharp increase of 0.5 points, partly against the background of the strength of the Israeli economy and low unemployment - apart from the worrying signs in the high-tech field.

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