Israeli hi-tech sees resilience alongside employment slowdown amid conflict: report

Jerusalem, Sep 23 A report issued Monday by the Israel Innovation Authority (IIA) revealed that the country's hi-tech sector has demonstrated resilience during the ongoing Palestinian-Israeli conflict despite stalled employment growth.

The report marked one year since the conflict began and reviewed its impact on Israeli hi-tech.

It showed that funds raised by Israel's hi-tech companies between October 2023 and August 2024 totaled 9 billion US dollars, matching the previous year's figures, with Israel remaining a significant destination for foreign investments.

On the other hand, the report highlighted a slowdown in hi-tech employment growth, which has been a key driver of economic expansion over the past decade, Xinhua news agency reported.

The slowing trend began in 2022, with the current number of hi-tech employees steady at around 400,000, representing about 11 per cent of Israeli workers.

The report also revealed a trend of concentrating investments in mature companies, particularly in cybersecurity, highlighting the risk of reduced investments in young startups and other sectors.

The Israeli hi-tech industry accounts for over half of Israel's exports, a third of employee income tax revenue, and a fifth of GDP.

However, the industry, heavily reliant on foreign investment, faces increased risks and uncertainty, affecting the broader Israeli economy.

Source: IANS