A new study by the Israel Employment Service published last week revealed that although the number of job seekers in northern communities near the border (0-9 km) is currently lower than it was before the war, there are significant gaps in their skills, abilities, and capacity to cope with the challenges of artificial intelligence.
At the macro level, the Employment Service notes that the number of job seekers today in northern communities near the border stands at 3,575, lower than their number before the war, which was 3,836. The further away from the border, the lower the current number of job seekers compared to before the war: in communities more distant from the border (5-9 km), the current number of job seekers is only 90% of the pre-war number (2,832 compared to 3,141); but in communities close to the border, of up to four kilometers away (excluding Kiryat Shmona), the number is currently slightly higher compared to the period before the war—107% compared to September 2023 (743 compared to 695).
The Employment Service notes that the number of job seekers in Kiryat Shmona has also decreased compared to the period before the war, but many of the city's residents have not yet returned to live there, so the proportion of job seekers in the current population is significantly higher than it was before.
However, alongside the macro data, the Employment Service also analyzed the occupational mix of job seekers in the northern localities near the border and found that their exposure to artificial intelligence is significantly lower than the average among job seekers in central Israel. On an index ranging from minus 1 to 1, the central districts (Petah Tikva, Rehovot, and Tel Aviv) received a score of 0.29, whereas the peripheral districts in the north and south received an average score of 0.01. The lowest level of exposure was recorded in the Golan Heights, where localities close to the border (up to 4 km away) recorded a score of minus 0.14; in localities 5-9 km from the border, a score of minus 0.11 was recorded.
This means that residents of the central region have a higher likelihood of adapting to the changing labor market compared to residents of other areas. On the other hand, the adaptability of residents in Israel’s geographic periphery, and especially those in the northern periphery, particularly residents of communities closer to the border, is the lowest.
The first regional employment center of its kind in Kiryat Shmona
Similarly, the Employment Service analyzed the remote work opportunities based on occupational segmentation characterizing job seekers from different regions and districts. Here too, they found significant gaps between job seekers from the periphery and those from the central areas—with the chances of job seekers in central districts being above average, while in the periphery they are below average. The overall average for remote work opportunities for all job seekers in Israel stood at 27%—in central districts the average was about 37%, whereas in the southern and northern peripheral districts it was around 23%. Here as well, the lowest chance for remote work was recorded in the Golan Heights—18% in communities up to 4 km from the border, and 20% in communities 5-9 km from the border.
The Employment Service emphasized that precisely in areas where remote work could have bridged central-periphery gaps, both geographically and socially, it is less accessible to those who need it most. In the changing labor market, which is becoming increasingly digital and global, there is potential to bridge central-periphery gaps through remote work. However, for this potential to be realized in practice, there is a need for the workforce in the periphery to have skills and competencies compatible with remote work. Without this condition, the likelihood of realizing the potential to bridge these gaps is low.
Given the current situation in the north, where the chances of remote work for residents are significantly lower than those of their counterparts in the center, even when technology allows for remote work, northern residents will struggle to take advantage of it without strengthening their remote work skills.
“Deep skill gaps between the center and the periphery”
The Employment Service is working on establishing the first-ever regional employment center in Kiryat Shmona, which will provide a comprehensive range of employment solutions for the residents of the Upper Galilee, both employers and those looking for jobs. Within the center, all employment efforts of the government and local authorities in the area will be consolidated: the Employment Service office, which helps people find employment, a Youth Center, a Business Hub, an independent Center – which seeks to support and integrate peripheral communities into the modern workforce – and more—all under one roof. Every resident of the Upper Galilee, whether a job seeker or an employer, will be able to access a variety of relevant tools at the employment center, ranging from worker recruitment and training, to skill development and enhancement, and including employment assessment, career counseling, coaching, training, and smart placement in the labor market.
The center is expected to begin its operations during 2026. Later, the Employment Service emphasizes, another employment center will be established for the residents of the Western Galilee.
Inbal Mashash, Director General of the Employment Service, highlighted the need for such a center in the north. "The data reveals deep skill gaps between the center and the periphery, especially in the north, which require urgent and focused government intervention, particularly in light of the changing labor market challenges,” she said, “In contrast, the Employment Service is working to establish regional employment centers in the north, which will centralize government work in the field of employment – including career assessment and counseling, training, strengthening AI skills, and placement, according to the needs of employers on the one hand and the challenges and aspirations of job seekers on the other.”
Translated by Benji Sharp
