{"id":5120,"date":"2023-05-16T09:27:00","date_gmt":"2023-05-16T09:27:00","guid":{"rendered":"https:\/\/innovationisrael.org.il\/en\/?post_type=press_release&p=5120"},"modified":"2023-11-30T09:35:14","modified_gmt":"2023-11-30T09:35:14","slug":"2022-2023-human-capital-report","status":"publish","type":"press_release","link":"https:\/\/innovationisrael.org.il\/en\/press_release\/2022-2023-human-capital-report\/","title":{"rendered":"2022-2023 Human Capital Report"},"content":{"rendered":"\n
Following global slowdown, high-tech moved from record growth to a complete stand-still in 2022: a 70% increase in layoffs during the second half of 2022 compared to same period of 2021; small companies and non-technology employees affected most severely; companies chose to hire more junior employees<\/strong><\/p>\n\n\n\n Effects of the 2022 global recession:<\/p>\n\n\n\n CEO of the Israel Innovation Authority, Dror Bin<\/strong>: “This report paints a complex situation of a drastic shift in high-tech employment trends. Similar to past economic slowdowns, when the volume of private funding and public companies’ valuation drop, so do the rates of high-tech employment. The Israeli high-tech is our most important economic resource and the trends described in this report are not conducive to the continued rapid development of the Israeli economy. I believe that such fluctuation in the economy is certainly something we have experienced in the past, however, we must make sure that we are doing our utmost to ensure the high-tech sector comes out of this crisis strong, as we did in the past.”<\/p>\n\n\n\n Uri Gabai, CEO of the SNPI Policy Institute<\/strong>: During the past few months, we have forewarned of the worrisome combination of the effects of global recession on Israeli High-Tech, which are clearly evident in this report \u2013 together with the ramifications of political and social instability in Israel. This combination resulted in companies halting recruitment, forego salary updates and a high rate of employees’ layoffs. There is concern that should this negative trend continue, it will jeopardize the attractiveness and leadership of Israeli High-Tech. The human capital is the driving force behind Israel’s technological leadership, and unlike other ecosystems that draw talents from around the world, Israeli High-Tech relies almost entirely on local talent and educational institutions. We must do our utmost to preserve the human capital within Israel, even as we hope for the impending end of the storm we are currently experiencing.\u201d<\/p>\n\n\n\n After two years of a tide that began in mid-2020, the Israeli High-Tech industry entered a period of slowdown in mid-2022, which has intensified in recent months. The Human Capital report reflects the global economic slowdown that began in the second half of 2021 with rising inflation worldwide and downturns in financial markets. The global economic slowdown led to a decrease in the growth rate of human capital in the High-Tech sector and resulted in a negative growth in the number of employees. The transition from the peak period of 2022 to a global slowdown shifted the industry from a “job seekers’ market” to an “employers’ market.”<\/p>\n\n\n\n The most significant challenge to the High-Tech sector posed by the global slowdown, is evident even in data from March 2023 that reflects the distress faced by the industry. The main findings from the report are as follows: <\/p>\n\n\n\n Israel Innovation Authority and SNPI Policy Institute publish the 2022-2023 Human Capital Report update for the high-tech sector: Following global slowdown, high-tech moved from record growth to a complete stand-still in 2022: a 70% increase in layoffs during the second half of 2022 compared to same period of 2021; small companies and non-technology employees affected […]<\/p>\n","protected":false},"featured_media":6997,"parent":0,"template":"","geographic_location":[],"collaboration_opportunities":[97,105,98,99,100,101,102],"mini_site_category":[],"acf":[],"yoast_head":"\nNegative trend which started with the global slowdown at the end of 2022 worsened in the first quarter of 2023;<\/strong><\/h3>\n\n\n\n
25% of the companies plan on laying off employees and 25% of the companies reported halting recruitment<\/strong><\/h2>\n\n\n\n
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In addition, the report notes that despite initial indications of global recovery in the High-Tech sector, it is unclear whether the global recovery of multinational companies would serve to strengthen the Israeli High-Tech job market.<\/p>\n\n\n\n\n
To read the full report, click here<\/strong><\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"