Economic Impact of War: Israeli Average Salary Sees Fluctuations - High-Tech Sector Stalls

Recent data from the Central Bureau of Statistics (CBS) paints a complex picture of Israel's economic landscape in October, the month when the war broke out. The average salary for a salaried employee stood at NIS 12,492, showing a 6% increase compared to October 2023 but a noticeable dip from September's almost NIS 13,000. Adjusted for inflation, the average salary at constant prices was NIS 10,619, reflecting a modest 2.2% uptick from October the previous year.

In the high-tech industry, where salaries averaged NIS 29,626 in October, stability was observed compared to September. However, the number of salaried jobs in this sector experienced a marginal decline of 0.5%, reaching 393.6 thousand, compared to October 2022.

The overall employment scenario was less optimistic, with the total number of salaried jobs across all sectors dropping by 1.2% in October compared to the same period in 2022 and by 2.1% from September 2023. The total number of salaried jobs in October was 3.874 million.

The CBS emphasizes that the data excludes workers receiving unemployment benefits, affecting the accuracy of the employment figures. Additionally, the calculation of average salary does not consider the number of days a worker was employed in a given month.

Looking ahead, preliminary estimates for November suggest an 8.8% increase in the average salary, reaching NIS 12,882. However, the number of salaried positions is reported to have decreased by 6.6%, likely impacted by a rise in unemployment attributed to the ongoing war.

In a related development, it was revealed that the minimum wage is set to increase by NIS 308 in April, reaching NIS 5,880 per month. This adjustment follows last year's increase of NIS 270, tied to the average wage in the economy as calculated by the National Insurance Institute, albeit with a slight variation from the CBS methodology.

The economic landscape remains fluid, with these figures reflecting the immediate impact of the conflict on Israel's workforce. As the situation evolves, economists and policymakers will closely monitor these indicators for a comprehensive understanding of the economic trajectory in the months to come.