Israel’s tech sector faces challenge from shortage of workers

The sector accounts for about 45 percent of Israel’s exports. (Shutterstock)
Updated 16 December 2018
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Israel’s tech sector faces challenge from shortage of workers

  • The sector accounts for about 45 percent of Israel’s exports
  • Arabs account for only 3 percent of tech workers but this is expected to change soon as 18 percent of all computer science students today are Arab

TEL AVIV: Israel is struggling to recruit enough workers to its technology sector, a report showed on Sunday, creating a challenge for an industry seen as the country’s main potential driver of economic growth over the next decade.
Start-Up Nation Central, which published the report with the Israel Innovation Authority, said that while the number of high-tech workers in Israel had grown over the past five years, their percentage of the labor force remained unchanged.
“It is becoming increasingly clear that the required growth will not be possible if the country’s supply of tech workers is inadequate,” said Eugene Kandel, head of Start-Up Nation Central
“Tech companies are struggling to find tech professionals, with many already finding (them) overseas.”
The number of tech workers — who earn more than double the average wage — grew to 280,000 in 2017 from 240,000 in 2013 but represent only 8 percent of the workforce, down from nearly 10 percent in 2008.
This is surprising given that investment into high-tech has soared, with venture capital funding exceeding $5 billion in 2017 and closing in on $6.5 billion this year. The number of multinationals operating development centers in Israel jumped to nearly 350 in 2016 from around 50 in 2000.
The sector accounts for about 45 percent of Israel’s exports. But about 15,300 positions remain open.
To find workers, Israeli companies are opening development centers overseas, mainly in Ukraine but also in the United States, Russia and India. Several dozen firms have also taken advantage of a rapid process established by the government in 2018 to obtain special visas for foreign tech workers.
But in the long term more initiatives are needed to increase the pool of workers, Kandel told reporters. There is great potential among women, who represent only 23 percent of tech workers, as well the largely untapped Arab and ultra-Orthodox Jewish sectors.
Arabs account for only 3 percent of tech workers but this is expected to change soon as 18 percent of all computer science students today are Arab, similar to their share of the population.
One obstacle for their employment in high-tech is that they live far from the country’s center.
Aharon Aharon, head of the government’s Innovation Authority, said he would launch two plans in the first quarter of 2019 — one to provide incentives in building an innovation ecosystem in the periphery and another to encourage tech companies to open branches outside of the center.


Saudi Arabia and UAE launch a new joint cryptocurrency

Updated 47 min 49 sec ago
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Saudi Arabia and UAE launch a new joint cryptocurrency

  • The cryptocurrency will be limited to banks during its first stages
  • The program will also help the two countries evaluate the monetary policies of a centralized currency

Saudi Arabia and the UAE have launched a joint cryptocurrency during the first meeting of the Saudi-Emirati Coordination council Saturday in Abu Dhabi, UAE’s national press agency WAM said.

The cryptocurrency will be limited to banks during its first stages, until the governments have a better understanding of how Blockchain technology operates cross-borders.

The currency operates on the use of a “distributed database between the central banks and the participating banks from both sides,” aiming to protect customer interests, set technology standards and assess cybersecurity risks. The new program will also help evaluate the impacts of a central currency on monetary policies.

During the meeting, representatives of Saudi Arabia and the UAE also signed the Joint Supply Chained Security Cooperation program, which tests the two countries abilities to provide vital supplies during times of crisis and national emergencies, as well as share expertise and knowledge in the field.

All 16 members of the executive committee of the council followed up on the execution of the initiatives mentioned in the Strategy of Resolve.

Representatives also set five other initiatives to enhance the cooperation between the two countries, such as facilitating the traffic between ports, improving airports to make it easier for people with disabilities to travel, creating a financial awareness program for children aged 7-18, starting a joint platform to support local SMEs, and the integration of civil aviation markets,

The committee was headed by Mohammad bin Abdullah Al-Gergawi, minister of cabinet of affairs and the future of UAE, and Mohammed bin Mazyad Al-Twaijri, minister of economy and planning in Saudi. The committee will also monitor the implementation of the initiatives.