Israel’s average monthly wage in November last year increased by 9.5% compared to the same month in 2022, reaching a record high of 12,969 shekels ($3,535), according to data from the Central Bureau of Statistics.
According to official data reported by Globes, the real average wage (a measure of purchasing power that takes inflation into account) increased by 6% during the same month on an annual basis.
Job numbers declined by 4.9% in November compared to the same month in 2022. Additionally, there was a 2.5% decrease compared to the previous month of October. Many employees were either laid off or placed on unpaid leave due to the war and the slowdown in business activity, potentially causing an artificial increase in the average wage, as reported by the newspaper. The newspaper also pointed out a similar phenomenon during the COVID-19 pandemic, where the average wage jumped due to the separation of low-wage workers.
In the technology industry, the wage increase was even more significant, with a 10.4% rise in November compared to the same month in 2022, surpassing 29,000 shekels ($7,906), according to the newspaper. However, job numbers in the high-tech industry dropped by 1%, reflecting a real increase in employee salaries.
In November, the technology sector accounted for 10.4% of the total jobs in the Israeli economy.
In a related context, the Bank of Israel cautioned investors and policymakers against excessive optimism following positive data, stating that a significant portion of the economic growth was due to a drop in the basic figure for comparison and the records in October following the operation in Gaza and the outbreak of the war. It indicated that the full recovery might take longer than initially expected.
The bank’s memo predicted that the recovery period in production levels could extend to over a year. The recent increase in the shekel, in part, was attributed to the continuous rise in Wall Street indicators and the rumors surrounding potential progress in negotiations regarding the prisoner release deal.
The bank holds a cautious stance on inflation in Israel, expecting a 2.8% increase over the next year, while also ruling out short-term interest rate declines due to stability concerns and market conditions.
