Tech jobs expanding, but it’s tough for code writers

The trend in the number of jobseekers in high tech has stabilized and pay is rising, according to the latest report from the Employment Service. In January 2022, there were just 7,205 unemployed tech workers. At its peak, during the military operation against Iran in June last year, the number almost reached 20,000. The current number is 16,308. This is contrary to the general trend in unemployment, which is 10% lower than it was four years ago. The blame is partly laid on AI, which renders some junior functions in high tech redundant, while enhancing the productivity of experienced and particularly talented workers. Is the “juniors crisis” already with us?

The Employment Service states: “In general, high tech in Israel grew rapidly and significantly between 2012 and 2023. Central Bureau of Statistics figures show that the average number of people employed in high tech rose steadily from 2012, when it was 262,000, until 2023, when it reached 441,000. During 2024, however, presumably because of the war, the number fell to 424,000, but it rose again in 2025 to 435,000, with the trend unclear.”

Today, in absolute terms, the number of people employed in high tech is fairly similar to what it was several years ago. This applies also to employment in technological professions within companies that are not themselves technological companies, and is measurable in the rise in the rate of unemployment among such workers. It should be pointed out, however, that at present the figures do not indicate a decline in the number of technology workers, but only to a halt in its growth.

Vacancies on the rise

On the other hand, the number of job vacancies is rising. While there is no comparison with the height of the bubble in 2022, when there were 23,000 tech job vacancies, in the period 2024-2025 the number of vacancies rose from about 10,000 to about 14,000. In other words, there are considerable employment opportunities available, but they perhaps demand qualifications and experience that not every tech jobseeker possesses. In addition, pay in high tech is getting steadily further away from pay in the economy in general. According to the Central Bureau of Statistics, pay gaps have widened by about 20% in comparison with early 2022.

In combination, the figures indicate a widening gap within the tech industry itself: between “juniors” who tried to get into the field at a time when it was flourishing and demand for workers was at a peak, and is now lower, and “seniors” with experience and know-how whose pay keeps rising.

In this context, the Employment Service brings AI into the discussion. “As the implementation of generative AI in code writing progresses, and at the same time the diversion of investment towards hardware continues, jobseekers in software are liable to have difficulty in returning to the workforce, and they may have to change profession. There may, however, be other scenarios, and the growing use of programing tools may result in expansion in the number of people working in that area. Generative AI used to write code has the power to change the software industry, much of which is a matter of routine coding. The high tech industry cannot therefore be regarded as all of a piece.” That is to say, the industry may split, and require a smaller number of higher quality workers.

Employment Service director Adv. Inbal Mashash said, “The report’s macro figures – a slowdown in the rise in the number of jobseekers in high tech and the greater extent of opportunities in the industry – are very encouraging. Nevertheless, the complete picture is more complicated. Workers in software, who represent more than half the number of jobseekers in high tech, are coping with a significant challenge in the era of AI. This demands creativity, flexibility, and special solutions.”

Published by Globes, Israel business news – en.globes.co.il – on February 16, 2026.

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