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The average monthly salary of Israeli workers fell in recent months to 11,753 shekels ($3,514) in May, from 12,668 ($3,788 shekels) in March, from 12,026 ($3,596) in April, according to data released Thursday by the Central Bureau of Statistics. (CBS)
Israel is recovering from a 2020 hit by the Covid-19 pandemic, with strong growth in 2021 and modest growth expected in 2022 due to inflation, home prices and consumer spending and another looming national election.
The Bank of Israel estimates the country’s unemployment rate is back to where it was months ago, but the economic climate in the technology sector in particular is complicated by a general slowdown in industry.
But salaries in the tech industry are still at the top of the pay scale, with an average monthly salary of NIS 26,828 ($8,019) in May 2022 – down slightly from NIS 27,684 ($8,275) in April 2022, but higher than NIS 24,826 ($7,421). ) in May 2021. The industry employed 383,000 people, an increase of 11.8% compared to May 2021, according to CBS. Salaried tech workers make up about 10% of Israel’s workforce.
Figures show that technical workers in R&D roles earn an average monthly salary of 30,000 NIS ($8,967) at the high end, while workers in tech communication and marketing can earn 15,000 NIS ($4,483) at the low end.
Salaried workers in the financial and insurance sectors followed with a monthly average salary of 23,000 NIS ($6,875), followed by workers in the electricity and water supply and sewerage services sector, with the average salary falling to 19,545 NIS ($5,842) in May 2022 (down) from NIS 20,530 in December. 2021 $6,528). The latter employs more than 30,000 people in a sector that includes a market monopoly.
In the year Israelis ride an electric scooter on Rothschild Boulevard in Tel Aviv on May 5, 2021. (Miriam Ulster/FLASH90)
At the bottom of the pay scale, the average salary for hospitality workers was 5,720 shekels ($1,709) per month. The minimum wage in Israel stands at 5,300 shekels ($1,500) a month, or 29 shekels ($9.20) an hour, which means many receptionists may not be employed full-time.
The government announced late last year that it would gradually raise the monthly minimum wage to 6,000 NIS ($1,912), or 33 NIS ($10.50) an hour, by 2025.
According to CBS,
A July report by CBS found more than 152,000 job vacancies in June 2022, mostly in sales and service, with more than 17,000 vacancies in technology for programmers and computer engineers.
Strong economy, rising inflation
Last month, the Bank of Israel raised interest rates by half a point to 1.25 percent, intensifying its fight to control rampant inflation and soaring housing costs.
The move sent fixed-rate mortgage payments higher than home prices, which rose nearly 15% last year, to their biggest increase in more than a decade.
In February, the central bank signaled it would gradually start raising interest rates to curb inflation, citing Israel’s strong economic performance and signs of “continued robust activity” alongside the energy crisis caused by Russia’s war on Ukraine and a slowdown in the economy. Activity in China due to increased Covid-19 disease and global supply chain disruptions.
Bank of Israel Governor Amir Yaron spoke at a press conference in Jerusalem on April 11, 2022. (Flash90)
The high rate is designed to limit the flow of money by making credit unattractive, ultimately weakening consumer demand and suppressing inflation caused by commodity shortages and cash shortages.
According to the Central Bank, inflation in Israel has reached 4.1% in the past 12 months, with projections showing it rising to 4.5% in 2022, and falling to 2.4% next year. These figures are higher than the peak ranges of 3% in 2022 and 2% in 2023 forecast by the bank in January.
The bank forecast GDP growth of 5% in 2022 and 3.5% in 2023, down from 5.5% for 2022 and 5% for 2023 in February. Israel In the year In 2000, Israel’s growth stalled at 8.4%.
Although the estimated growth rate for 2022 is “slightly lower” than expected, the head of the Bank of Israel, Amir Yaron, said that “it is definitely a growth that reflects strong economic activity.”
Israel’s economy, the head of the bank, “is in a strong position in many respects.” Growth is high, the labor market is tight, the government deficit is low, tax revenues are rising, and businesses continue to thrive.
On a less positive note, another national vote – scheduled for November 1 – presented an “environment of political uncertainty” that was “not good for the economy”.
In June, a study by the Israel Democracy Institute estimated that the cost to the economy of the next election would be as high as $3 billion ($873 million).
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