Unemployment in Israel fell in January

The unemployment rate in Israel fell to 2.6% in January 2025, after seasonal adjustment, from 2.7% in December 2024, the Central Bureau of Statistics reports. The unemployment rate remains at historic low levels, although it was a little lower at 2.5% in November 2024 – the lowest level since the 1970s. At the same time the number of job vacancies remains stable at about 141,000, much higher than on the eve of the war in October 2023.

The unemployment rate is actually 2.8%, also an exceptionally low rate, but January is considered a weak month in terms of unemployment data, so that, seasonally adjusted, the figure is actually equivalent to 2.6%, compared to 2.7% in December 2025. This is an exceptionally low unemployment rate, indicating a tight labor market to the point of a severe shortage of workers.

Also in the original data, the broad unemployment rate (including those who have given up looking for work and employees on unpaid leave) fell from 4.3% in December to only 4.1% in January. Seasonally adjusted, the employment rate of all Israelis of working age also rose slightly from 62.9% to 63%. At the same time, there is also a decrease in absence from work due to reserve duty, mainly among men.

Over 60% of the increase in job vacancies stems from demand in the construction sector.

The number of job vacancies in the economy remained stable in January compared to December, standing at approximately 141,000, with 4.43 job vacancies per 100 employed in the economy. The Central Bureau of Statistics figures also summarize 2024, noting that “following the war, the number of job vacancies increased from about 125,000 vacancies in 2023 to 137,000 vacancies per month on average in 2024. This follows a trend of decreasing job vacancies from the second half of 2022 to September 2023 (when the number of vacancies was 116,000).”

The Central Bureau of Statistics also says: “There has been a sharp increase in the number of job vacancies in the construction sector, and more than 60% of the increase in job vacancies stems from the demand for these job vacancies.” In fact, the number of job vacancies for housing builders, masons and concrete layers jumped by 213% from the average for the period between January and September 2023 to the average for 2024. The number of job vacancies for floor-layers, masons and plasterers also jumped by 95% in the same period.

In contrast, compared with the pre-war period, there were significant declines in the number of job vacancies for engineers and technicians (down 11%), waiters and bartenders (down 16%), drivers (down 31%) and network technicians (down 33%).

Published by Globes, Israel business news – en.globes.co.il – on February 17, 2025.

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