Wages in Israel Still Below Their 2001 Peak, Treasury Says

Average wage higher last year than it was in 2007, but still lower than what it was at peak of high-tech bubble.

Moti Kimche

The average wage in Israel was higher last year than it was in 2007 but lower than in 2001 at the peak of the global high-tech bubble, the Finance Ministry said in a weekly survey on Sunday.

Wages only caught up with 2007 levels last year, after rising 1.5% after inflation from 2013 to an average of 9,397 shekels ($2,326) a month, Yoel Naveh, the treasury’s chief economist said.

In the private sector, the average wage was 9,225 shekels, versus 13,121 shekels in the public sector. In the non-profit sector, it was just 5,465 shekels a month and for household work 4,274 shekels, the reason being because there are so many part-time workers, the treasury said..

The highest salaries are paid by government-owned companies, in the financial services sector and in the civil service, where 2014 average salaries were 17,188, 16,992 and 9,996 shekels a month, respectively.

While employment has been growing, the increase in the number of jobs slowed in 2014, the ministry said.

In the private sector, employment grew 2.2%, down sharply from an average of 3.8% in 2010-2012. In the public sector, it grew 3% last year, down from a 3.9% increase in 2010-2012.

The civil service accounted for 18.5% of all jobs in Israel last year, while government companies accounted for another 4.6%. Financial services employed 3.2% of the labor force and non-profits 6.4%. The public sector has been growing faster than the private sector, whose share of all employment declined to 67.3% from 69% at the start of the decade, the treasury said.