Israel’s hi-tech sector has moved from an employee-driven market to one where employers set the rules, with sign-on bonuses trimmed, tougher recruitment, and fewer perks.
The shift is reflected in slower headcount growth, weaker fundraising, and longer office hours. The report cites company officials and market data to show rising numbers of job seekers in core software roles and stricter in-office policies.
Israel Innovation Authority figures quoted in the report put tech employment at about 403,000, or 11.5% of the workforce, a share unchanged since 2021, with annual growth eroding by at least two percentage points after years of rapid expansion.
Israeli venture funds raised about 80% less in 2025 than at the 2022 peak, and roughly 500 startups were launched this year.
Employers have pared back once-common extras such as lavish welfare budgets, widespread leasing, and unlimited meal plans, prioritizing benefits tied to physical, mental, and financial health, HR sources told Walla Finance.
Time-clock data from Oketz Systems shows a 9% rise in average hours worked and a 7% drop in vacation days taken compared with the prewar period, CEO Haim Molcho said.
Anonymous HR managers described lengthier hiring funnels that include multiple interviews, technical tasks, and cultural-fit conversations, with recruiters moving quickly to the next candidate if interest lags. A viral job-seeker post captured the mood: “I’m willing to work 13 hours a day in the office, just let me find an employer.”
Expanded in-person requirements
Flexible hybrid arrangements are narrowing. Many startups now require four to five days in the office, and larger firms are expanding in-person requirements. Mobileye and Playtika are shifting to four office days, Wix is mandating four days, and Nvidia employees are typically in the office two to three days a week.
Since 2019, job seekers in databases and networks have increased by 223%, and those in software development and application analysis have increased by 147%. Together, they now account for 57% of all tech job seekers in Israel.