Head of employment service: AI bringing increased unemployment in hi-tech sector - The Jerusalem Post

Inbal Mashash, director general of the Israel Employment Service, stated that artificial intelligence is driving increased unemployment in the hi-tech sector. She reported that over 16,000 hi-tech workers have recently registered as unemployed with the service, a figure that highlights the impact of automation on what has been a key growth industry. The announcement was reported by The Jerusalem Post and comes as AI tools become more capable of performing tasks previously done by skilled professionals.

Mashash's comments were made during a press briefing on the labor market, though no exact timeline for the 16,000 registrations was provided. The hi-tech sector is a major component of Israel's economy, accounting for a significant share of exports and employment. The Employment Service did not break down which specific roles or companies were most affected, but the statement suggests that AI adoption is reducing demand for certain skilled positions. The figure also represents a notable uptick in hi-tech unemployment registrations compared to prior periods, though comparative data was not released.

The development adds to a growing body of evidence that AI is displacing workers even in high-skill sectors. Mashash's statement underscores the challenge for policymakers in addressing the displacement of workers who may require retraining or support to transition to new roles.