Israeli hi-tech unemployment rises as AI advances, official warns

The director general of the Israel Employment Service, Inbal Mashash, stated on a radio program that unemployment rates in Israel's hi-tech sector are rising due to the advancement of artificial intelligence. The trend is worrying as AI automates roles previously held by skilled tech workers. Mashash did not provide specific figures but highlighted the need for workforce retraining and policy adjustments. The comments come amid a global shift where AI is displacing jobs in knowledge-intensive industries. Israel's hi-tech sector is a major economic driver, accounting for a significant share of exports and GDP. The government is under pressure to address the skills gap and support displaced workers.

Global Impact

Economically, rising unemployment in Israel's hi-tech sector could reduce the country's export competitiveness and slow GDP growth, as tech is a key growth engine. Socially, it may increase inequality and political pressure for labor market reforms.