As Israelis go to the polls today, data accumulated in recent weeks paints a worrying picture for the high-tech sector, the growth engine of Israel's economy. At its heart: more educated Israelis are leaving, and fewer development jobs remain in the country.
Who is leaving
According to Haaretz, a report being prepared by Prof. Itai Ater, Prof. Nittai Bergman and Doron Zamir of Tel Aviv University points to a sharp rise in emigration from Israel since 2023. According to the report, the number leaving approached 70,000 in 2025, and net emigration rose from an average of about 10,500 a year in the previous decade to about 30,000 in 2024. The number of Israelis returning has fallen to a multi-year low. According to the researchers, emigration is especially pronounced among people with a bachelor's degree or higher, those with degrees in science, engineering and computer science, and doctors.
The researchers stress that the situation is not yet dangerous, but warn that if the trend continues it could lead to a dangerous decline in the stock of skilled human capital and broader economic damage.
High-tech feels it
The Innovation Authority's figures show signs too. According to its annual report, the number of R&D employees in Israel fell for the first time in a decade, by about 3,500 jobs. The share of private Israeli tech companies' employees based in Israel fell to 62% in March 2026, from 69% in 2019, and the share of senior executives based in Israel also declined. All this is happening alongside a record year: according to the authority, high-tech exports reached $85 billion and exits $84 billion.
Why it is happening
According to reports, the causes vary: the war, the political dispute over the judicial overhaul, a strong shekel that makes employing workers in Israel more expensive, and changes AI is bringing to the job market. The government has offered tax benefits to tech workers who return to Israel and committed about NIS 1 billion to the national AI program.
What it means
Israeli high-tech still attracts investment and produces huge exits, such as this week's sale of Classiq to Intel. But if engineers, researchers and decision-makers keep moving abroad, less and less of the value these companies create will stay in Israel. Whoever forms the next government will need to take these numbers seriously.
