Unemployment in Israel surges to post-COVID high as war with Iran jolts labor market

Israel job seekers surge to 396,000 in March amid war with Iran, as labor market tightens and unemployment spikes 

Data from Israel’s Employment Service show a sharp deterioration in the labor market in March, as the number of job seekers climbed to about 396,000 — more than 2.5 times higher than the previous month — following the outbreak of the war with Iran.
By the end of the month, competition for jobs had intensified significantly, with roughly 10 job seekers vying for every three available positions, compared with a far more favorable ratio of nine vacancies in February.
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עבודה בהייטק
עבודה בהייטק
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As in previous crises, women bore the brunt of the impact, accounting for 58.3% of all job seekers. The surge in unemployment was broad-based, affecting cities and sectors across the country, with an average increase of about 182% in municipalities with more than 40,000 residents.
The sharpest rises were recorded in occupations requiring outdoor activity or public gatherings — areas heavily restricted under Home Front Command directives during the conflict, which effectively halted parts of the economy for security reasons.
“In total, the report reflects the volatility experienced by the labor market during Operation Roaring Lion, with 396,000 job seekers,” said Employment Service Director General Inbal Mashash. “The primary impact has been on parents, women and young people. At the same time, Israel’s labor market remains resilient, and the data already point to the beginning of a recovery and a gradual return to routine.”
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