Consequences of the War
The recovery was not uniform: certain sectors continued to experience the effects of the war more than others. The construction sector stood out, with a vacancy rate that soared to 10.1% in January 2024, declined to 9.4% by the end of the year, and reached 9% in May 2025—compared to 6.7% before the outbreak of the war.
Stable Trend
Regarding remote work, the Tel Aviv and Central districts continued to lead in 2023, with Tel Aviv at the top. In contrast, the Northern, Southern, and Haifa districts showed lower rates. This trend remained stable in 2024, despite the evacuation of northern communities and an escalation in fighting during the third quarter of the year.
Software, Engineering, and Care Fields
The professions that saw the largest increase in employment rates—both over the years and in the past year—were in software and engineering, as well as caregiving fields. Conversely, professions in retail sales and secretarial work continued to decline.
Average Real Wage Rose by About 2.4%
The average real wage for Israeli salaried employees in January–September 2024 rose by about 2.4% compared to the same months in 2023, though the growth rate slowed relative to previous years.
At the beginning of 2024, wages dropped and stabilized below the trend from 2015–2019. By December, wages remained approximately 236 shekels lower than the projected wage based on the average growth rate from 2015–2019. In particular, wages in the public sector did not increase, and the gap between public and private sector wages widened.
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