Executive Search in Israel – 2021 Outlook

Israel Faces Third Lockdown

According to the Central Bureau of statistics, the two lockdowns in 2020 downsized the market by 10% during the course of the year. Inflation rate is under 1. Interest rate is close to 0% and predicted to remain at 0-0.% till end of 2021.

Even though close to two million people in Israel were already vaccinated, Israel is now in its third lockdown with all commerce, workplaces and schools closed. Israel is also approaching its fourth general elections in two years.

The recovery from the effects of COVID19 will most certainly be gradual and the decrease of 5.1% in GDP in 2020 is predicted to grow to 5.4% in 2021. The GDP decrease 7.2% in 2020 and growth if there will be future lockdowns will be 2.3%.

Unemployment was 3.9% in 2019 and rose to 22.7% in November 2020 due to restrictions of work caused by the pandemic.  It is supposed to change dramatically at the second half of 2021 with unemployment decreasing well below the 10%.  All these numbers do not apply to the High-tech and Biotech industry which is still very successful with extremely high demand, no unemployment and increasing salaries and benefits.

Work from home is very common now.  It seems that hybrid work will be common in the Next Normal and will outlast COVID-19.  This will further aggravate office rent prices that have fallen decreased 7-10%.

Contact the author: Efrat Shapira at efrat-shapira@cornerstone-group.com 

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