A new study from the Taub Center for Social Policy Studies reveals that artificial intelligence is significantly shifting Israeli unemployment patterns, particularly impacting junior hi-tech and administrative roles.

Key Points

• Researchers Michael Debowy, Gil Epstein, and Avi Weiss found AI accounts for 2% to 6% of the shift in occupational unemployment distribution between 2022 and 2025.
• The share of unemployed workers in high-risk occupations rose from 14%–16% in 2022 to 20%–25% by 2025.
• AI explains up to 20% of the unemployment increase among software developers and up to 26% among telephone sales representatives.
• Junior employees are disproportionately affected as employers increasingly favor experienced staff who use AI to boost their individual productivity.
• Occupations involving hands-on human interaction, such as plumbing, firefighting, and nursing, remain largely insulated from AI-driven displacement.

Why it Matters

This research highlights a structural transformation in the labor market where AI creates a skills mismatch rather than just eliminating total jobs. Policymakers must now prioritize retraining programs to help displaced workers adapt to new requirements and remain competitive in an evolving economy.