The labor market recovery continues alongside a seasonal rise in job seekers, according to data for July published on Sunday by the Employment Service.
The number of registered job seekers with the Employment Service rose from approximately 169,000 in June to roughly 173,500 in July - an addition of about 4,600 people.
However, the monthly increase does not indicate a shift in the trajectory of the labor market at this stage and is largely explained by seasonal summer layoffs.
Seasonal factors and overall market recovery
During July, approximately 40,000 new job seekers registered, including roughly 8,100 people affected by seasonal summer layoffs - about 20% of all new registrants.
The Employment Service noted that data from recent months remains affected by the unusual surge recorded in March-April following Operation "Roaring Lion," and therefore trends should be examined over time rather than based solely on monthly changes.
Employment Service CEO Inbal Mashash added: "The overall picture is one of a labor market continuing its recovery process, even if the path back to routine is not uniform across populations and regions. The role of the Employment Service is to ensure this recovery translates into actual employment opportunities for job seekers."
According to Central Bureau of Statistics data, the number of job vacancies in May 2026 stood at approximately 150,200 - an increase of roughly 8,400 vacancies compared to the previous month.
Accordingly, the ratio of job vacancies to job seekers stood at approximately 0.81, meaning roughly four job vacancies for every five job seekers.
The combination of a decline in the trend line of job seekers and a recovery in job vacancies indicates a gradual return of the labor market to characteristics of a tighter labor market following the shock recorded in the spring.
Shifting demographic and academic profiles
Alongside the change in the number of job seekers, a shift in their composition has continued in recent years. In July 2026, approximately 20.4% of job seekers belonged to higher socioeconomic clusters 8-10 - a rate roughly 3.4 percentage points higher compared to July 2023.
The proportion of job seekers with academic occupations rose, reaching roughly 20.3% of all job seekers. However, the Employment Service emphasized that the monthly increase in academics should not be interpreted as a broad decline in academic employment: A significant portion of the increase in July stems from seasonal summer layoffs in the education system.
Job seekers among post-primary school teachers rose between May and July by approximately 43.7%, from about 2,300 to roughly 3,300.
An increase was also recorded in job seekers among software developers and systems analysts, as well as database and network professionals. The number of job seekers in the tech sector stood at approximately 17,000 in July - a rise of about 3% over two months.
Regional trends and specific communities
According to the service, the seasonal effect of the summer is particularly evident in the composition of job seekers. The proportion of women among total job seekers rose from 54.1% in June to 55.5% in July, with women accounting for roughly 58% of new registrants. The increase is largely tied to summer layoffs in education and other seasonally affected professions.
Simultaneously, the number of job seekers from Haredi society rose by roughly 24.4% in July.
The increase was particularly prominent in Haredi municipalities where the rate of job seekers rose significantly: In Modi'in Illit from 2.6% in June to 4.1% in July, in Betar Illit from 3.2% to 4.4%, in Elad from 2.3% to 3.7%, and in Beit Shemesh from 3.5% to 4.3%.
The highest rates of job seekers were recorded in Rahat (roughly 6.0%), Umm el-Fahm (roughly 5.6%), Acre and Afula (roughly 4.7%), Kiryat Gat (roughly 4.6%), and Nazareth (roughly 4.5%).
Conversely, relatively low rates were recorded in Ramat Hasharon, Rishon Lezion, and Kfar Saba at approximately 2.3% each - and in Ra'anana, Holon, Eilat, and Ness Ziona at roughly 2.5%.
Evolution of benefit claimants and outlook
The shift in the labor market is evident in the composition of benefit recipients: The share of unemployment benefit claimants has consistently risen, while the share of income support claimants has dropped. In annual average terms, the rate of unemployment benefit claimants recorded a sharp rise from roughly 55.3% in 2022 to approximately 73.5% in 2025, reaching a peak of about 78.2% during the January-July 2026 period.
Parallel to this trend, the rate of income support claimants plummeted from roughly 40.8% in 2022 to about 22.7% in 2025, reaching a low of just 18.7% in the first seven months of 2026.
According to the service, the labor market today is characterized by a higher proportion of workers entering it solely due to temporary or cyclical fluctuations, which does not reflect true market weakening but stems from transient phenomena (such as summer break or a security crisis) after which most workers are expected to quickly re-integrate into employment. This occurs alongside an ongoing decline in the number of job seekers remaining outside the labor force over the long term in prolonged, chronic unemployment.