\u201cThe immunity of the Israeli high tech stems from its ability to sell most of its product to the US,\u201d Sergei Sumkin of the Aron Institute told The Media Line. \u201cThe demands of companies like Apple, Google and others are almost endless.”<\/p>\n
Israel\u2019s high-tech industry continues to grow,\u00a0demonstrating\u00a0resilience in the face of shifting trends, technological\u00a0advances\u00a0and political upheaval.\u00a0\u00a0\u00a0\u00a0<\/p>\n
The sector, a primary engine of Israel\u2019s economic growth, continues to perform strongly\u00a0despite major challenges. \u00a0\u00a0<\/p>\n
Alongside geopolitical instability, the increased adoption of artificial intelligence has reshaped the global high-tech industry, changing how companies hire and invest. Israel\u2019s technology sector has not been immune to these changes, although their impact has not necessarily\u00a0been negative. The strengthening of the shekel against the US dollar has created another challenge for the country\u2019s export-dependent high-tech industry.\u00a0\u00a0\u00a0<\/p>\n
According to data released by the Israel Innovation Authority, Israeli high-tech output increased by 8.2% in 2025. There was a 30% increase in capital raising, record levels of exits, and a record share of high-tech in Israeli exports. \u00a0\u00a0<\/p>\n
Rotem\u00a0Meitiv-Klein is the CEO of\u00a0Expiris, a high-tech recruiting firm. Their data also show that over 40% of Israeli tech companies plan to hire in the coming year. \u00a0\u00a0<\/p>\n
This is a sign of recovery and resilience and is a higher figure than what we see in other countries that are less vulnerable to both geopolitics and global trends<\/p>\n
\u201cThis is a sign of recovery and resilience and is a higher figure than what we see in other countries that are less vulnerable to both geopolitics and global trends,\u201d\u00a0Meitiv-Klein told The Media Line. \u00a0\u00a0<\/p>\n
Israel is considered a global technology hub, recording\u00a0$85 billion\u00a0in exports,\u00a0$84 billion\u00a0in exits, and\u00a0nearly\u00a0$15 billion\u00a0in capital raised throughout 2025, despite the period being one of major regional instability and war.\u00a0\u00a0<\/p>\n
In the first quarter of 2026, this trend\u00a0appears to be\u00a0continuing. The tech industry reached a major milestone, with employment in tech positions surpassing 600,000,\u00a0representing\u00a07% growth. In a report released last week by The Aaron Institute for Economic Policy at Reichman University, this number\u00a0represented\u00a0a sharp increase and a departure from three years of employment slowdown.\u00a0\u00a0<\/p>\n
\u201cThis is a big surprise,\u201d Dr. Sergei Sumkin, head of the tech sector at the Aaron Institute, told The Media Line. \u201cIn the first quarter, as the shekel strengthened and Israel experienced a full month of war, this is not trivial. It is very encouraging to see an increase in employment and exports.\u201d\u00a0\u00a0<\/p>\n
Since October 2023, Israel has been engulfed in a major multi-front war. While its intensity has significantly\u00a0lowered in recent months, the latest flare-up was with Iran in March of this year.\u00a0\u00a0<\/p>\n
\u201cBetween 2023-2025, we saw a slowdown in employment in the tech industry and in tech jobs in other industries,\u201d Sumkin explained. \u201cWithin the 7% increase in employment, we are seeing an increase in research and development jobs and in product jobs.\u201d\u00a0\u00a0<\/p>\n
In recent months, there have been major\u00a0layoffs\u00a0in Israeli companies and multi-national corporations (MNC) based in the country. Wix,\u00a0Amdox\u00a0and MNCs have significantly downsized their Israeli operations. Unicorns and start-ups have also experienced steep job cuts.\u00a0\u00a0<\/p>\n
Even those who are firing, are simultaneously also hiring. They are looking for new employees that are better suited for the new tasks, new structure and new needs.<\/p>\n
\u201cEven those who are firing, are simultaneously\u00a0also hiring,\u201d\u00a0Meitiv-Klein explained. \u201cThey are looking for new employees that are better suited for the new tasks, new structure and new needs.\u201d\u00a0\u00a0<\/p>\n
According to Sumkin, the increase in product-related jobs\u2014roles that combine coding with product and marketing skills\u2014contradicts predictions that AI would replace such positions. \u00a0\u00a0<\/p>\n
\u201cHistory has taught us that man and machine, or in this case AI, usually\u00a0complement each other,\u201d Sumkin said. \u201cAI does not replace\u00a0manpower, and in the past, we have never seen that employment decreased when\u00a0new technology\u00a0was introduced. Jobs will change, especially\u00a0those whose positions can be taken over by computers.\u00a0\u00a0<\/p>\n
In the past, we have never seen that employment decreased when new technology was introduced<\/p>\n
Some argue that the bigger challenge is not job loss but adapting the workforce to a rapidly\u00a0changing technological landscape.\u00a0\u00a0<\/p>\n
\u201cProfessions aren\u2019t being deleted, but it might be harder to find jobs, and there will be a need for a shift in education and skills,\u201d said\u00a0Meitiv-Klein. \u201cWe are in the midst of a transitional period between the need for traditional data and IT skills needed and AI literacy and the ability to develop AI-based applications and models.\u201d \u00a0\u00a0<\/p>\n
Despite major challenges, the numbers show that the Israeli tech industry is thriving and will continue to do so.\u00a0\u00a0<\/p>\n
\u201cThe Israeli economy as a whole is very tech-dependent, and therefore it is less vulnerable to such changes,\u201d Sumkin continued. \u201cIt is also highly\u00a0diversified, and this diversity is a major contributor to its resilience.\u201d \u00a0\u00a0<\/p>\n
Almost three years of war have left Israel\u00a0largely\u00a0isolated\u00a0in the international political arena. \u00a0\u00a0<\/p>\n
\u201cThe immunity of the Israeli\u00a0high tech\u00a0stems from its ability to sell most of its product to the US,\u201d he continued. \u201cThe demands of companies like Apple, Google and others are almost endless, and the ability of the Israeli tech industry to compete in these markets is a huge asset that must be protected.\u201d\u00a0<\/p>\n
Several governments have announced weapons embargoes, while academic and cultural boycotts are spreading. A global surge in anti-Semitic incidents is also being linked by critics to Israel\u2019s weakened international position. Israel is also being accused of committing genocide in Gaza, with an active court case at the International Court of Justice. \u00a0\u00a0<\/p>\n
However, the tech industry continues to push forward as the numbers clearly\u00a0demonstrate.\u00a0\u00a0<\/p>\n
\u201cThe secret to the success and the resilience of Israel\u2019s high-tech\u2013is the people who work in the industry.\u201d He adds that they are \u201cresilient\u201d and have the \u201cability to keep putting one foot in front of the other, even in very unstable periods\u2013both nationally, or amidst winds of change in the industry,\u201d Meitiv-Klein added. \u201cThis includes the Israeli entrepreneurs who keep coming up with new ideas, founding new firms, and this is expressed in the data we see now.\u201d\u00a0\u00a0<\/p>\n
One of the clearest signs of that economic resilience has been the shekel\u2019s recent appreciation against the US dollar.\u00a0\u00a0<\/p>\n
The shekel has strengthened sharply\u00a0against the dollar in recent months, making it one of the stronger-performing currencies among developed economies. Economists attribute the appreciation to a combination of increased foreign investment, a rebound in confidence following the end of the high-intensity regional conflict, and strong inflows from Israel\u2019s export-oriented technology sector. While a stronger currency reflects investor confidence, it also makes Israeli goods and services more expensive abroad, creating challenges for exporters who earn much of their revenue in dollars.\u00a0\u00a0<\/p>\n
\u201cThe Israeli high-tech industry exports about 90% of its output, and as soon as the shekel is strong, this has an impact on the margin profits by squeezing them and impacting the ability to pay wages,\u201d said\u00a0Sumkin. \u201cWhat has helped balance this is massive investments,\u201d allowing breathing space \u201camidst the appreciation\u201d\u00a0\u00a0<\/p>\n
The Aaron Institute report shows a total\u00a0$4 billion\u00a0investment in Israel\u2019s tech sector for the first quarter of 2026, a high figure that exceeds even some years prior to the outbreak of the war. \u00a0\u00a0<\/p>\n
Despite strong employment growth, Israel\u2019s high-tech industry still faces a new set of challenges. As AI reshapes the skills companies\u00a0seek, and a stronger shekel squeezes exporters\u2019 competitiveness, the sector is adapting to a rapidly\u00a0evolving technological and economic landscape while continuing to\u00a0demonstrate\u00a0resilience.\u00a0\u00a0<\/p>\n
\u00a0<\/p>\n
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