OECD Report Highlights Deep Structural Challenges in Israel's Education System
A new OECD report reveals that Israel faces rising youth dropout rates, increasing NEET figures, severe classroom overcrowding, and a widening wage gap between teachers and other academics.
Israel's education system faces significant structural challenges, according to the OECD's Education at a Glance 2026 report published on Tuesday. The data reveals concerning trends in school dropout rates, youth unemployment, government spending, and classroom crowding.
Rising Dropout Rates and NEET Numbers
The share of young adults aged 25–34 without a secondary education in Israel increased from 9% in 2015 to 11% in 2025. In contrast, the OECD average showed a downward trend, dropping from 17% in 2015 to 12% in 2025. Only five developed countries registered an increase in this metric, with Israel and Slovakia recording the most substantial jumps. This educational deficit carries severe economic consequences, as young adults without a high school diploma earn only 72% of the average salary earned by high school graduates in Israel, compared to 87% across the OECD.
Furthermore, the proportion of young people aged 18–24 who are neither in employment, education, nor training (NEET) rose from 17% in 2015 to 20% in 2025. This marks the highest increase among developed nations, while the OECD average declined to 13%. Prolonged periods of inactivity among youth negatively impact long-term integration into the labor market and elevate risks associated with crime and social marginalization.
Low Government Spending on Higher Education
Government funding for higher education in Israel remains severely constrained compared to developed economies. In 2023, public spending per tertiary student stood at $7,885 (adjusted for purchasing power parity), roughly half the OECD average of $16,405. Government contributions accounted for only 38% of total national expenditure on higher education in Israel, contrasting sharply with the 68% average across OECD countries, placing Israel near the bottom of international rankings.
Classroom Overcrowding and Early Childhood Education
Israel continues to rank first among OECD nations for elementary school classroom density. Public primary schools average 28 students per class, significantly higher than the OECD average of 21. In middle schools, classes average 30 students compared to an OECD average of 23, placing Israel third highest out of 32 countries.
Government investment in early childhood education (ages 0–2) also lags dramatically. State expenditure per child stood at $1,482 annually, representing just 9.8% of the OECD average of $15,067.
Teacher Salaries Relative to Academics
The report highlights a sharp decline in the relative wages of Israeli teachers compared to other college-educated workers. While primary school teacher salaries previously stood at 86% of the earnings of other academics—close to the OECD average of 83%—the figure dropped to 73% in the 2026 report. The OECD attributes this shift to rapid wage growth among Israeli university graduates, driven heavily by the country's thriving high-tech sector.
