Unemployment in Israel's high-technology sector has climbed to new highs, with more than 16,000 workers recently registering as jobless, according to Inbal Mashash, director general of the Israel Employment Service.
Speaking on Tuesday, Mashash identified the rapid advancement of artificial intelligence as a key driver behind the worrying trend, suggesting that automation and AI integration are displacing roles faster than the market can absorb displaced workers.
9% in May from 60.1% in April, coinciding with a decline in labor force participation.
The surge in tech-sector joblessness presents a stark contrast to the broader macroeconomic picture.
Recent data from the Central Bureau of Statistics showed Israel's overall employment rate dipping slightly to 59.9% in May from 60.1% in April, coinciding with a decline in labor force participation.
While the wider economy has been noted for outperforming many developed-market peers, including the United States, the specific pressure within the hi-tech industry highlights a growing divergence between aggregate growth and sector-specific structural challenges.
For investors and market observers, the data underscores the accelerating impact of AI on labor markets in advanced economies.