Israel Labor Market Slowns in September Amid Holidays While AI Usage Surges

September data from Jobnet and Civi AI shows a seasonal hiring slowdown in Israel due to the Tishrei holidays, while the use of artificial intelligence tools more than doubled.

Walla•Author: Liat Vaknin
Source •
Israel Labor Market Slowns in September Amid Holidays While AI Usage Surges
Photo: צילום: Walla.co.il

The phrase "we'll talk after the holidays" is perhaps one of the most frequently heard in Israel during September—and the labor market was no exception. Interviews were postponed, managers took vacations, and candidates eased up on the gas pedal, stretching recruitment processes that normally take days into weeks.

Indeed, the monthly recruitment index by Jobnet in collaboration with Civi AI indicates a decline across almost all key activity metrics in September. However, a deeper look into the data reveals that a significant portion of this slowdown stems from the calendar. While humans worked less, the use of AI tools actually surged.

Holidays and Fewer Workdays

September data shows that compared to August, there was an approximately 18% decrease in recruiter activity, a 22% drop in the volume of applications, and a 13% decrease in the number of newly opened positions. At first glance, this picture might indicate a significant slowdown in the hiring market.

However, September this year included the Tishrei holidays: Rosh Hashanah, Yom Kippur, and Chol HaMoed Sukkot—meaning a direct comparison to August tells only part of the story. An analysis of activity by working days shows that the holiday period was equivalent to about three and a half fewer full working days. After adjusting for this, the drop in recruiter activity almost disappears, the decline in applications shrinks to about 7%, and the rate of opening new positions actually shows a slight increase.

Candidates Rest, but Hiring Continues

On the job seekers' side, the holiday atmosphere was also evident. Fewer resumes were sent out during the month, and fewer new candidates reached the hiring stage. Nevertheless, the number of employees who actually started working increased slightly. Some of the starts recorded in September were the result of recruitment processes that had matured during August or earlier.

"The holiday period naturally affects the pace of activity for both employers and candidates, so the decline recorded in September does not necessarily indicate a trend reversal," says Gilad Ayalon, CEO of Jobnet. "When looking at the data relative to actual working days, we see that the recruitment market continued to operate even during the slower pace."

AI Drives the Pace

The most unusual statistic of September lies elsewhere: the use of AI tools within the Civi AI system more than doubled compared to August. This surge comes at a time when more actions in the recruitment process integrate artificial intelligence, including candidate-job match scores, natural language candidate searches in the database, and smart job recommendations.

According to Shay Bechor, CEO of Civi AI: "September is a month that is very easy to misinterpret if you only look at monthly numbers. Both candidates and recruiters were less active, but when examining activity by days, a large part of the decline is simply linked to having fewer effective workdays."

Bechor adds that as AI tools become a natural part of the workflow, their usage rises rapidly. The goal is not to replace the recruiter, but to enable them to reach the right candidates faster and spend more time on the human element of hiring.

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