Study Finds Israeli High-Tech Employment 18,000 Below Pre-Pandemic Growth Trend

A new policy paper from the Phoenix Institute for Capital Market Research at Reichman University estimates that Israeli high-tech employed about 400,000 people in 2025, roughly 18,000 fewer than a continuation of its pre-pandemic growth trend would imply. The gap represents a comparison with that projected trajectory. The study puts Israel-based employees at about 62% of private Israeli high-tech companies' workforce in 2026, down from 69% in 2019. Average financing per deal reached about $39.3 million in the first half of 2026, while first investments accounted for 35.5% of investment deals, reflecting the study's finding that capital is concentrating in fewer companies.