If more haredim are going to enter Israel’s hi-tech sector, it couldn’t come at a better time.
The new government has set a target of increasing the number of workers in the hi-tech sector to 15% of the total workforce by 2026. Estimates now indicate the hi-tech sector has about 350,000 jobs, or a bit more than 10% of the workforce, so the target would require a 50% jump. Many analysts believe that a much greater investment must be made in education before that goal can be reached.
Meanwhile, hi-tech companies say they are having difficulty recruiting talented manpower within Israel. A recent report by the Israel Innovation Authority and Start-Up Nation Central estimated that the tech sector had as many as 13,000 open positions it couldn’t fill as of December 2020. It also said that 60% of Israeli hi-tech firms said they have trouble recruiting for R&D positions. Expanding the pool of available talent is critical for the growth of the tech sector, Israel’s most significant economic driver.
Meanwhile, a survey of hi-tech employers published by Kamatech in April found that 55% of those polled believe that the rise of remote work models during the pandemic will prompt more haredim to seek work in Israel’s hi-tech sector. Some 18% of those surveyed said that the number of haredi workers in their offices increased during the past year.
At the same time, 78% said they believed that the current shortages of tech manpower will lead more haredi workers to seek work in the sector, and 91% said they have a “high” or “very high” willingness to hire more ultra-Orthodox workers.
Changes are afoot. In 2014, haredi workers made up just 0.7% of the hi-tech sector, and were largely older workers, aged 35-45. Now, haredim make up 3% of the hi-tech ecosystem, and many are 28 or younger. What will the hi-tech sector look like when it reaches the 15% government target?