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Tel Aviv

Nearly Half of Israeli Tech Firms Struggling with Worker Shortages Due to Iran War

Nearly half of Israeli tech companies reported significant workforce shortages as a result of the ongoing war with Iran, with more than a quarter of their employees absent due to a combination of reserve military duty, closure of educational frameworks, and security restrictions. The Israel Innovation Authority surveyed 637 CEOs, founders, and executives of high-tech companies and startups between March 18 and 23, during the third week of fighting.

The survey found that 42 percent of firms reported delays in meeting development goals, with 22 percent stating they had already substantially postponed milestones or product launches. About 71 percent indicated the security situation had affected fundraising or investment processes, with investors delaying decisions or canceling funding altogether. The impact was more pronounced among smaller companies and those located in the north and south of the country.

Israel Innovation Authority CEO Dror Bin said the sector is facing challenges related to human capital, supply chains, product development, and access to capital, but noted that the industry has proven its ability to recover quickly from recent disruptions. Karin Mayer Rubinstein, CEO of Israel’s Association of Tech Industries, said the main challenge remains the workforce shortage, which is damaging production and supply chains for companies that also operate manufacturing plants.

(TOI/VFI News)

“Dear God, we ask You to sustain the economy of Israel during this time of war and uncertainty. We pray in Yeshua’s Name for the workers called to reserve duty and their families, that You provide for their every need. We ask that You inspire creativity and resilience in Israel’s innovators, protect the livelihoods of those who are suffering financially, and restore prosperity to the land You have given Your people.”