The number of job seekers in Israel fell by 2.3% this month, to 158.1 thousand.

Although the labor market is still tight, with around nine job vacancies for every ten job seekers, the number of people claiming income support this month was only 35.7 thousand, the lowest ever recorded.

There was also a change in the proportion of people from different groups seeking jobs this month. The share of non-Haredi Jews seeking jobs reached approximately 66%, up from 60.9% in January 2023.

Both unemployment claimants and income-support claimants declined in January 2026 compared to previous months.

In 2025, the number of people claiming unemployment rose steadily, while the number of income-support claimants declined fairly consistently.

Employment Service CEO Adv. Inbal Mashash explained that “January’s data show a 2.3% decline in job seekers, but behind this figure lies a gradual shift: the share of academics and managers among the dismissed reached a peak at the start of 2026, 26% and 21% respectively, reflecting changes in the labor market.”

Overall, Israel’s labor market has remained tight over the past year, with the ratio of vacancies to job seekers around 1:1.

This month, the ratio was 92-to-100, approximately nine jobs for every 10 job seekers.

Deeper analysis suggests that the composition of job seekers has changed as difficulty increases among stronger workers.

Although total high-tech vacancies have increased, the number of software developer vacancies in December 2025 was significantly lower than in 2022.

Additionally, the share of dismissed workers from academic and managerial occupations has risen sharply.

“Alongside growth in high-tech jobs, we are seeing intense competition among software developers in the AI era and an increase in job seekers in unskilled occupations,” said Mashash.

The percentage of non-Hareidi Jews seeking jobs has increased steadily since 2023; the percentage of Arabs seeking jobs has declined steadily over the same period.

Job seekers from high socioeconomic clusters have increased since January 2023, while those from middle and low clusters have experienced a steady decline.

Most skilled occupations examined have seen a notable decline in job seekers over the last two months; however, 17 of the 46 occupations they examined showed clear increases.

A slight rise was also recorded in unskilled occupations, which may be temporary but is being monitored.

“The Employment Service is establishing a dedicated research unit to monitor trends in real time and formulate policy recommendations - because the new reality requires tailored solutions for all job seekers, helping the strong return to work and reducing gaps in weaker regions,” said Mashash.