It is possible that the high-tech market, which suffered a drop of more than half of the vacancies it had, is experiencing a change of direction: the number of vacancies for software developers between February and April increased by 3% compared to the previous moving average, and it now stands at 6,302. This is a particularly interesting increase, as it comes after more than a year of a downward trend.
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At the peak of demand for programmers, January to March 2022, there were no less than 13,720 vacancies in software development. Since then, the number of jobs has been falling until it was cut by more than half, reaching a low of 6,138 in the January-March average. But now, we actually see an upward trend.
It is difficult to know what the continuation of the trend will be. It’s worth following the next publications of the vacancies to see if this is a temporary anecdote, or the beginning of the recovery of the labor market in the Israeli high-tech sector, which has experienced a significant crisis in the last year.
The number of vacancies is decreasing
After the chief economist at the Treasury published an update to Israel’s growth forecast this week, which lowered the forecast from 3% growth in 2023 to only 2.7% growth, the number of job vacancies also portends an economic slowdown: from a record of almost 160,000 job vacancies during 2022, the number of job vacancies in Israel drops to 128,175 in April. This is also a decrease compared to the month of March, during which 130,118 vacancies were registered.
Also in terms of the vacancy rate (the number of jobs for every 100 actually employed), there is a decrease: as of April, there are 4.02 vacancies for every 100 employed, compared to 4.1 in March. In the first half of 2022, the rate of vacancies was at its peak and stood at almost 5. But the current number is also significantly higher compared to the pre-corona period – in 2019, the number of vacancies averaged 3.46. But in terms of the trend, we are on the decline, and closer to the situation in 2019 than to the peak of 2022.
