Integration of Haredi Men in high-Tech Employment

There are currently around 1.2 million Haredi (ultra-Orthodox) people living in Israel, representing around 12% of Israeli population. By 2035, this population group is projected to reach as much as 18% of Israeli population. The high-tech sector is a primary growth engine of the Israeli economy. The product per worker and the average monthly wage in this sector are more than double than the per-worker product and wages in the rest of the economy. However, for nearly two decades there has been a relative stability in the employment share of the high-tech sector – around 8 to 10 percent. Integrating Haredi employees into the high-tech sector would expand the human resources available to this sector, while substantially increasing the income level of the large Haredi family. The number of Haredi men currently integrated in the high-tech sector is low. In 2019, there were only 3,088 Haredi men employed in high-tech companies, with an annual increase of around 150-250 employed men. Haredi men in high-tech employment represent only around 1% of all salaried workers in this sector, and around 3% of all employed Haredi men. These rates have remained low throughout recent years, despite massive public investment aiming to rectify this situation. The study of past efforts and of the professional experience accumulated in this field over the years forms the basis for proposed policy measures aiming to increase the rate of Haredi men employed in the high-tech sector and in technological occupations, in order to optimize training processes in this field and contribute to increasing the labor productivity within this population group, as well as overall economic growth. Our policy paper presents the current situation of the integration of Haredi men in high-tech employment, and examines the possible ways to increase the number of men employed in this sector.

In the roundtable discussion, we will propose targets and policy recommendations aiming to expand the employment of Haredi men in the high-tech sector. We will receive comments and hold an open discussion among all participants, moderated by Prof. Zvika Eckstein, Dean of Tiomkin Economics School and Head of Aaron Institute for Economic Policy at Reichman University.

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