Updated
Updated · The Jerusalem Post · Jul 6
Israel's May Unemployment Rate Rises to 2.8% as Jerusalem Hits 4.1%
Updated
Updated · The Jerusalem Post · Jul 6

Israel's May Unemployment Rate Rises to 2.8% as Jerusalem Hits 4.1%

1 articles · Updated · The Jerusalem Post · Jul 6

Summary

  • 126,500 Israelis were unemployed in May, lifting the jobless rate to 2.8% from April as the labor force totaled 4.469 million, or 61.6% of the population.
  • Employment rates slipped for both sexes, with men's rate edging down to 64.6% from 64.9% and women's to 58.7% from 59.1%, pointing to a broader softening in hiring.
  • Jerusalem posted the highest regional unemployment rate at 4.1%, up from 3.4% in April, while Tel Aviv and central Israel had the lowest rates at 2.4% each.
  • 79.1% of Israelis with jobs worked full-time in May, up from 78.6% in April, even as overall employment weakened.
  • 152,134 job vacancies were recorded in December 2025 — the highest since November 2022 — showing labor demand had remained relatively strong before the latest uptick in unemployment.

Insights

How can Israel’s economy boom during wartime while its vital high-tech sector is increasingly moving jobs and talent overseas?
With defense costs soaring, can integrating the fast-growing Haredi community into the workforce solve Israel's long-term economic challenges?