Taub Center study finds AI shifts Israel's unemployed and intensifies job competition
Updated
Updated · The Jerusalem Post · May 2
Taub Center study finds AI shifts Israel's unemployed and intensifies job competition
9 articles · Updated · The Jerusalem Post · May 2
The report says AI drove 2% to 6% of the 2022-2025 change, with high-risk occupations rising from 14%-16% to 20%-25% of unemployed people.
Software developers and telephone sales representatives were notably affected, while younger workers were hit harder as AI boosted experienced staff productivity and raised skill requirements for available jobs.
Researchers said overall unemployment remains broadly stable and AI is only part of the shift, alongside the hi-tech slowdown, post-Covid adjustments and automation in manufacturing.
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25% Rise in Unemployment Among AI-High-Risk Occupations Signals Labor Market Restructuring in Israel
Overview
Israel's high-tech sector leads AI adoption, integrating AI deeply into core systems and non-technical roles without causing mass layoffs. This widespread AI use shifts the labor market from employee-led to employer-led, reducing entry-level jobs and increasing demand for AI skills, making reskilling and education reform urgent. Meanwhile, AI selectively displaces workers in routine, automatable roles, raising unemployment in high-risk occupations like software development and administrative support, especially affecting youth and women, notably Arab women. This creates intense job competition and wage polarization, with high-skill workers benefiting from AI augmentation while mid-skill roles face pressure. Without strong investment in training and inclusive policies, many risk exclusion from the evolving AI-driven economy.