Israel is a country with a developed free-market economy dominated by the technical and industrial manufacturing sectors. The unemployment rate of Israel has increased from 3.78% in 2020 to 5.39 % in 2021 due to the impact of the pandemic. Israel is known for the diamond cutting industry, and diamond is the major export of the country and accounts for 18.1 % of the country’s total exports. Many multinational companies have opened their branches in the country.
The education, science, and technology sector has shown considerable growth and has helped boost employment rates. The hi-Tech sector witnessed fast growth, too, and the country is also a favorite destination for tourists. Israel also enjoys friendly international relations and has signed free trade agreements with European Union, the United States, and several other countries. The other major industries include the Finance sectors, Construction, and Agriculture sectors.
Overview of Israel
As of 2021, it is the 30th largest economy in the world by nominal GDP (Gross Domestic Product). Technology and industrial manufacturing is the major economic sector of the country. Diamond is the major export of the country, which accounts for 18.1 % of the total exports. Israel also has been badly affected by the pandemic.
Population - 8.6 million
GDP – US $402.64 billion (FY20)
Israel’s tax rate is the highest in the world, and it is one of the main sources of income for the country. The GDP in 2020 had reduced by 6.3% in 2020 compared to 2019 when it grew by 3.4%. But the economy is expected to grow in 2021-2022 as the economy is recovering from the pandemic. The country also witnessed an increase in the unemployment rate in 2021 compared to 2020 due to the impact of COVID-19 on various sectors.
Israel has a large number of start-ups and ranks second after the United States and is known as the start-up nation of the world. The most popular sectors are industrial manufacturing and technology. The country is famous for its diamond cutting industry. The other main industries include the solar energy industry and tourism industry. Israel has the highest tax rate, which is the major source of national income.
A brief glimpse of the industries
- Technology is the biggest industry in the country. There is tremendous growth in the Hi-Tech sector. It produces different technical objects from Computer chips, CPUs, hard drives, and many more objects. The scope for investors in this sector is very high.
- Another major industry is industrial manufacturing. This sector has grown tremendously. This includes Israel’s diamond cutting industry. Israel is the center for diamond cutting, polishing, and exporting cut diamonds. Around 23.2% of the total exports come from this industry.
- The agricultural industry is a powerful and attractive investment and is expected to grow very fast. There are opportunities available in this industry as food is one of the important industries of the country.
- The tourism industry is another major industry that contributes heavily to the Israeli economy. Since it is a hub of archaeological, adventure, and heritage tourism, lots of tourists visit the country with a record of 4.5 million in 2019. The most visited city in the country is Jerusalem.
Cost of Living in Israel
Israel currently has the 8th highest cost of living in the world. It is one of the liveliest countries to live in. There are a lot of cultural and historical places in the country, which makes it a central attraction to tourists. It is ranked as the eighth expensive city, depending upon the rent, groceries, and purchase power.
Cost of Renting
The cost of living on rent in Israel depends on the location as well as the facilities available. You can expect to spend around 3429.54₪ ($991.1), for renting a 1 BHK depending upon the location. The rent is subjected to an increase depending upon the amenities available and the lifestyle desired.
In the year 2021, the below mentioned sectors will lead the hiring process: -
Top skills in Israel
Israel has a developed free-market economy and is heavily dominated by the industrial manufacturing and technology sector. Consequently, it is keen on hiring skilled individuals and highly qualified professionals trained in various hard and soft skills. From a software engineer to a self-employed person, Israel opens the door to a wide range of opportunities. A country is an excellent place for entrepreneurial spirits as the country is known as the Start-up nation in the world.
Major skills and areas which have witnessed a recent growth rate
- Technology/ Hi-Tech
Top skills city-wise occupation-wise
- Jerusalem- Jerusalem is one of the oldest cities in the world and is considered to be a holy land by Christianity, Judaism, and Islam. Tourism is the main industry that flourished in this city. The other industries include the education, food and accommodation sector, and agricultural sector.
- Tel Aviv- Tel Aviv is the most populous city in Israel. It is a metropolitan area where it serves as a home to several foreign embassies. The city is also called ‘The World’s Vegan Capital’ due to the highest population of vegans. The main industry in Tel Aviv is the hi-tech sector, and the city is sometimes called Silicon Wadi. The other industries include food manufacturing, textile plants, and chemical processing.
For a productive hiring drive, you need to factor in various important aspects related to the cost of hiring. Some of the most important factors that require your attention include,
- Cost of conducting the recruitment process.
- Time required for the recruitment process.
- Cost of onboarding and training the employees.
- Opportunity cost
Salary structure for various roles
Employees engaged in different sectors across Israel can expect salaries in the range as mentioned below: -
Employment Laws in Israel
Israel regulation on employment consisted of a proper comprehensive system. Maximum work hours, overtime payment, leaves available are some of the factors that vary according to the industry. The Israeli Labour Law regulates the following employment aspects –
- Maximum 43 work hours a week
- Paid and unpaid leaves
- Termination of employment
- Employee rights
- Workplace surveillance
Employer-employee relationships in Israel are governed by the below mentioned rules and regulations: -
- Legislation (federal, state, and territory laws)
- Employee protection laws
- Contractual agreements
- The common law
- Social security laws
How Can Skuad Help You with Hiring in Israel?
If you are looking to streamline your hiring processes in Israel, then it is important to utilize Skuad’s one-stop solution that simplifies the hiring process. This decision can help you save a significant amount of money as well as time. Connect with Skuad to know more about the recruitment services on offer.