Subscribe to Print Edition | Thu., November 27, 2008 Cheshvan 29, 5769 | | Israel Time: 01:35 (EST+7)   Back to Homepage web haaretz.com Haaretz Toolbar Diplomacy Defense Jewish World Opinion National Print Edition Car Rental Books Haaretz Magazine Business Real Estate GA 2008 Travel Week's End Anglo File

High-tech predicts 35,000 layoffs as sector shrinks By Guy Griml The clouds of recession hanging over the high-tech industry darkened yesterday, as the Association of Electronics and Software Industries issued a report stating the sector is about to hit a severe crisis. According to the report, 73% of companies plan to reduce their workforce by 10% to 15%, and 56% of companies are facing credit difficulties. Respondents said they expect their sales to fall by an average of 11% if the crisis continues. Advertisement The survey included 49 companies, 62% of which have more than 100 employees, and 37% of which have annual sales of more than $50 million. "Based on the survey we expect about 7,000 layoffs in the high-tech industry, and another 28,000 from peripheral industries that support the high-tech sector," association chairman Zohar Zisapel said. "Some 8,000 collage graduates in high-tech related fields will have trouble finding work. The result could be disastrous for the future of the high-tech industry. It will exacerbate the brain drain and adversely affect the number of students who choose to study engineering, mathematics and computer sciences," he said. Zisapel believes the industry could solve unemployment at large. "Hiring one person in the high-tech sector creates an average of four new jobs in other sectors. This also works in the other direction - one fired high-tech worker means four other jobs are lost," he said. Until this year, the high-tech industry had been growing at an annual pace of 10% to 15% annually, Zisapel said, and based on the number of orders in foreign currency, it was expected to continue to grow this year. But the strengthening shekel has changed these assessments, and shekel revenues are now expected to fall in 2008. "Based on 2007 sales figures, sales in the high-tech industry are expected to shrink by about $3 billion in 2009," he said. His association is calling on the government to take several urgent measures, including strengthening the dollar to at least NIS 4.5, helping banks to enable them to offer credit under the same terms that were offered before the global financial crisis, creating financing resources for the high-tech industry, either through banks or the government, and doubling the Industry, Trade and Labor Ministry chief scientist's budget. Bookmark to del.icio.us   Who's missing? Haredi parties absent from Jerusalem coalition for first time in decades. 'Kavosh 2' Amid nuclear tensions, Iran says it successfully launched rocket.

Read & React Documents reveal IDF killed wanted Palestinians against court guidelines Responses: 178 Israel asks Bush to explain its 'special relationship' with U.S. to Obama Responses: 115 Settler teens rampage through Palestinian neighborhood in Hebron Responses: 126 Aluf Benn: Obama's challenge will be to persuade Netanyahu to advance peace Responses: 57 Judea Pearl: Israel and Palestinians should apologize to each other Responses: 52 More Headlines 01:11 At least 80 people dead, hostages taken in multiple Mumbai attacks 23:55 AG seeks to indict Olmert over double-billing affair 22:07 Pines-Paz: It's a tragic day for Israel when a PM is indicted 23:44 Barak: We will evacuate settlers from Hebron house, by force if necessary 18:30 Lebanon asks Iran to supply its army with midsize weapons 23:40 UN watchdog clears Syria bid for atomic aid, despite world doubts 01:30 Who stole Hitler's golden bookmark? 17:27 Holocaust survivor to meet her Polish savior after 60 years 19:25 Haredi parties absent from Jerusalem coalition for first time in decades 18:29 Amid nuclear tensions, Iran says it successfully launched rocket 21:46 Borat's brother - a.k.a. Erran Baron Cohen - releases Hanukkah CD 18:28 Livni urges Thailand to commute Israeli drug smugglers' death sentence 18:28 Hamas, Fatah women brawl in Gaza as factional tempers flare 18:19 Short on fuel, Gazans use car batteries to restart power plant 13:31 Ban: Israel, Lebanon must 'seize the moment' and make peace 18:22 Settler rabbi: Peace Now chief should be jailed for treason Previous Editions Select Day 26 nov 25 nov 24 nov 23 nov 21 nov 20 nov 19 nov 18 nov 17 nov 16 nov 14 nov 13 nov

Special Offers Advertisement Living in Israel Studying in English Click & Meet our students from all around the world Living in Israel Studying in English Click & Meet our students from all around the world Dan Boutique Jerusalem New Dan Hotel in Jerusalem Young, Fun & Distinctively Dan Book Now Online! Fattal Hotel Chain Perfectly located hotels on best resorts of Israel. Car rental in Israel Shlomo Sixt Receive $15.00 from our low rates. Dial 013 for your long-distance calls and get all your money back US CITIZENS Vote for real change. Request your ballot today! Eldan Rent a Car Israel's leading car rental company offers you a 20% discount on all online reservations Jewish Singles Personal Ads Find the love of your life on JDate.com Israel's Premier Real Estate Website www. israel-property.com Hebrew Summer courses From $39.95 Junkyard Junk a car - get free towing nationwide and a tax-deductible receipt

Home | TV | Print Edition | Diplomacy | Opinion | Arts & Leisure | Sports | Jewish World | Underground | Site rules |

Real Estate in Israel | Travel to Israel with Haaretz | Hotels Israel | Restaurants Israel | Tourist attractions Israel | Shops Israel

birthright Israel | Search engine marketing

Haaretz.com, the online edition of Haaretz Newspaper in Israel, offers real-time breaking news, opinions and analysis from Israel and the Middle East. Haaretz.com provides extensive and in-depth coverage of Israel, the Jewish World and the Middle East, including defense, diplomacy, the Arab-Israeli conflict, the peace process, Israeli politics, Jerusalem affairs, international relations, Iran, Iraq, Syria, Lebanon, the Palestinian Authority, the West Bank and the Gaza Strip, the Israeli business world and Jewish life in Israel and the Diaspora.

© Copyright  Haaretz. All rights reserved