For years, the hi-tech sector has been the growth engine of the Israeli economy. It created high-quality jobs, attracted top talent, and had an impact that extended far beyond the boundaries of the industry itself. When hi-tech flourished, other sectors benefited as well: higher consumer spending, more services, increased demand, and greater business activity.
But when the locomotive slows down, the carriages behind it feel it too.
Recent data was published showing that the number of job seekers in the hi-tech sector had reached approximately 16,000 - nearly three times the level recorded before 2023. At the same time, companies are hiring less, recruitment processes are becoming longer, and even experienced professionals who once found new positions within a matter of weeks are now spending much longer between jobs.
According to Xtras, an Israeli digital platform that connects businesses with temporary workers, June marked the first time that young workers were no longer the largest group among active workers on the platform. The number of workers aged 26 and above surpassed that of younger workers, with the largest segment consisting of those aged 30 and over, who account for nearly 37% of all active workers.
This is not merely a statistic; it reflects a change in the composition of the labor market. Whereas temporary positions were once filled primarily by students or young people seeking flexible work alongside their studies, these roles are now being filled by a very different population.
Another notable figure is that, in recent months, hundreds of workers from the hi-tech sector have joined the Xtras platform. They come from almost every professional discipline: software developers, QA specialists, marketing professionals, salespeople, project managers, and many other skilled professionals. Some have only a few years of experience, while others bring long and impressive careers. Most are between the ages of 35 and 45.
Public discussion often focuses on junior employees struggling to secure their first position. What we are seeing on the ground, however, is a much broader phenomenon. Even experienced professionals who were once considered highly sought after are finding themselves in longer transition periods between jobs.
Most experienced professionals wish to stick with career
Most of them are not looking to change careers. They are looking for a solution that will allow them to continue earning a living without giving up the opportunity to keep searching for their next role. That is why many of them are specifically seeking flexible, part-time work - positions that enable them to maintain an income while still attending job interviews and remaining available for the next opportunity.
We are seeing the same trend among students as well. In the past, computer science or engineering students who worked temporary jobs during their studies would leave those positions almost immediately after graduation to begin junior roles in the hi-tech industry. Today, however, more and more of them continue working in these jobs for months after completing their degrees, simply because that first professional opportunity has yet to arrive.
Hi-tech sector not disappearing, but labor market has changed
This is one of the clearest indications of the transformation taking place in the Israeli labor market. Israel’s hi-tech sector is not disappearing, and it remains the country’s most important engine of economic growth. But its labor market has changed. The transition period between jobs is becoming longer, entering the industry has become more challenging, and the need for flexible employment solutions is becoming relevant even for populations that had never needed them before.
If there is one conclusion to draw from the past year, it is that flexible work is no longer a niche solution for students or merely a way to supplement income. It is becoming the safety net of the modern labor market. And in a world where careers are no longer linear, it may well become one of the most important foundations of the labor market in the decade ahead.
The author is the founder and CEO of Xtras, an Israeli digital platform that connects businesses with temporary workers.