The Impact of Artificial Intelligence on Israel’s Labor Market
Selected Issues Papers, July 13, 2026
Source details
- Canonical URL
- The Impact of Artificial Intelligence on Israel’s Labor Market
Other formats
Bibliographic details
- Authors: Ece Ozge Emeksiz
- Published: July 13, 2026
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229052931.018
Summary and key finding
- Artificial intelligence (AI)—particularly Generative AI—has the potential to raise productivity but could reshape workplaces across sectors.
- Using occupational microdata, the paper assesses the potential impact of Generative AI on Israel’s labor market and benchmarks it against selected European economies.
- The results indicate that most Israeli workers are likely to benefit from AI adoption.
- However, about one-fifth of the workforce faces high exposure with low complementarity, indicating their vulnerability to displacement.
- To assist workers at risk of job displacement, a comprehensive lifelong learning strategy—including reskilling, upskilling, and mid-career training—is essential.
Vulnerability and labor-market implications
- Exposure profile: most workers expected to benefit from AI adoption; about one-fifth of the workforce faces high exposure with low complementarity and are vulnerable to displacement.
- Sectors and occupations: AI could reshape workplaces across sectors (specific sectoral breakdowns and occupational microdata analysis are used in the paper).
Policy recommendations
- Implement a comprehensive lifelong learning strategy focused on:
- Reskilling
- Upskilling
- Mid-career training
- Policies aim to assist workers at risk of job displacement by improving complementarity with AI technologies and facilitating transitions.
Methodology and benchmarking
- Approach: analysis based on occupational microdata.
- Benchmarking: results are benchmarked against selected European economies to contextualize Israel’s exposure and complementarities.
Publication and metadata
- Author: Ece Ozge Emeksiz
- Date: July 13, 2026
- Series: Selected Issues Paper No. 2026/061
- Volume: 2026
- Issue: 061
- Pages: 16
- DOI: https://doi.org/10.5089/9798229052931.018
- Stock No: SIPEA2026061
- ISBN: 9798229052931
- ISSN: 2958-7875
- Subjects: Education, Labor, Labor force, Labor markets
- Keywords: AI, Artificial Intelligence, Digitalization, Europe, Global, IMF country, IMF staff, Israel, issues paper, Labor force, labor market exposure, Labor Markets, workforce composition
The Impact of Artificial Intelligence on Israel’s Labor Market, Selected Issues Papers (2026), Ece Ozge Emeksiz.
Content in this bundle
- Sipea2026061