Information and Communications Technologies sector output up, but jobs on decline

Sector grows as a share of Israel's exports, rising from 14% in 2013 to 16.4% in 2014

August 12, 2015 20:44
1 minute read.

Computer keyboard [illustrative].. (photo credit: ING IMAGE/ASAP)

Israel’s Information and Communications Technologies (ICT) sector makes up a growing share of the economy, but the number of jobs have fallen steadily for several years, according to data published by the Central Bureau of Statistics on Wednesday.

In 2011, 192,000 people were employed in the sector, but gradually decreased each year until hitting 183,000 in 2014. The 9,000 jobs lost represent a nearly 5 percent decline.

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Despite the loss in manpower, the sector has only increased in its economic output, growing 4% in real terms between 2013 and 2014, faster than the 3% growth of the private sector in general. In constant 2011-prices, ICT sector output was NIS 72.5m. in 2014, representing 11% of the total private sector output.

Compare that with the 5% of jobs the sector accounted for.

Given the high productivity in the sector, it is no surprise that salaries were significantly above most in Israel, where worker productivity generally lags. The average monthly salary in the ICT sector was almost NIS 27,000, nearly triple the average salary and over four times the median.

The sector grew as a share of Israel’s exports, rising from 14% in 2013 to 16.4% in 2014.

Unlike Israel’s general export patterns, however, in which Europe accounts for nearly a third of exports, followed by the US and Asia, the ICT sector is heavily oriented to the east. In 2014, 52.5% of ICT exports went to Asia, 18.8% to the US and 14.2% to the EU.

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