Nonetheless, in recent years, a number of communities around the world have begun opposing the entry of giant hi-tech companies to their cities, claiming that they negatively impact the region. For example, one report claims that housing prices in Berlin have risen greatly following the arrival of Google to the city and many local leaders have raised objections to the location of the Internet giant. So the question arises – does the entry of hi-tech companies have a positive effect on surrounding communities? Which sectors of society benefit most from the arrival of these companies? In the specific case of Jerusalem, how has the hi-tech industry affected the city?
According to the Jerusalem Institute for Policy Studies, only 44% of people working at hi-tech companies in Jerusalem in 2017 lived inside the city limits. 21% came from the greater Jerusalem area and another 35% came from farther away, mostly the Tel Aviv area. The Institute estimates that in 2017 there were approximately 450 job vacancies in hi-tech, but these jobs were apparently not open to all of Jerusalem’s residents. The percentage of Arabs and haredim working in hi-tech in Jerusalem is only 5% and 10% respectively.
In addition, hi-tech companies generally don’t hire students or young graduates, instead preferring to employ experienced individuals, even if they come from outside of the city. In other words, young people who’ve completed their university degrees in Jerusalem are having a hard time finding jobs in the city. Unfortunately, Jerusalem fell to level 2 out of 10 on the socio-economic ranking, despite the large amount of resources the city has invested in the hi-tech industry. These numbers indicate that the success of hi-tech in a city does not necessarily significantly improve the overall welfare of that city’s inhabitants.
Translated by Hannah Hochner.