The Employment Service’s “Labor Market Pulse" report for January 2026, published this morning (Sunday), shows a decline in the number of job seekers to 158,100 people.
However, the data reveal a dramatic and consistent shift in the composition of job seekers - the crisis is increasingly affecting educated workers and higher socio-economic groups.
According to the report, the proportion of academic and managerial professionals among the dismissed has risen sharply. While in the first quarter of 2022 they accounted for 17% and 16% of the laid-off respectively, at the start of 2026 their share climbed to 26% academics and 21% managers.
The Israeli labor market currently shows a ratio of about nine open positions for every ten job seekers. Nevertheless, the high-tech sector is experiencing difficulty: the number of vacancies for software developers stood at only 7,200 in December, significantly below the 10,100 recorded in 2022.
As in most months in recent years, Umm al-Fahm and Rahat again topped the list this month (5.7% and 5.5%, respectively), followed by Acre (4.6%) and Afula (4.3%), which was the Jewish city with the highest share of job seekers.
In general, the cities with the highest rates of job seekers this month are peripheral or Arab localities, while the lowest rates were again recorded in stronger cities such as Ra’anana, Kfar Saba, and Ramat Hasharon. Compared to the previous month, most cities in Israel saw a decline averaging about 2.5%, and in most cases the drop was greater than the average. By contrast, increases were recorded in several cities, all in the periphery, with the most notable in Eilat (14.1%). The sharpest declines were recorded in a variety of cities - some haredi (such as Elad, down 9%), some strong (such as Hod Hasharon, down 6.9%), and also in Rahat (down 7.9%).
Attorney Inbal Mashash, Director-General of the Employment Service, said: “The January data indicate a 2.3% decline in job seekers, but behind this figure lies a gradual shift: the share of academics and managers among the laid-off reached a peak at the start of 2026 - 26% and 21% respectively - a finding that reflects the changes in the labor market. Alongside an increase in high-tech jobs, we are seeing intense competition among software developers in the AI era and growth in job seekers in unskilled occupations. The Employment Service is establishing a dedicated research unit that will monitor trends in real time and formulate policy recommendations."