When other companies are laying off: a 40% increase in jobs in the Defense Tech field
While the high-tech sector saw only a 6% increase in new jobs, the Defense Tech field recorded a 40% jump in the first half of 2026, alongside rising salaries ranging mostly between 35,000 and 45,000 shekels per month. Data from the SQlink group shows that demand is focused on AI, cyber, and Embedded systems, with more tech professionals now open to opportunities in the defense industries.
Against the backdrop of the slowdown and layoffs in the high-tech sector, there are fields that are actually thriving. You probably won't be surprised, but one of them is Defense Tech, the defense-technological industry. In the first half of 2026, there was a 40% increase in the number of new technological positions in the Defense Tech field compared to the same period in 2025, according to data from the SQlink group. For comparison, in the high-tech sector as a whole, there was only a 6% increase in the number of new positions during the same period. The growth continues compared to the second half of 2025 as well, with a 25% increase in the number of new technological positions in Defense Tech.
The SQlink group reports simultaneously on growing demand from defense industries for technological projects and consulting, development, and implementation services. Among the fields where demand is recorded are AI, Embedded systems (a combination of hardware and software designed to perform one single task within a specific device), Python-based automation, and cyber. According to Roi Dimanick, CEO of SQlink Digital, alongside the cutbacks in certain parts of the high-tech sector, we are identifying an increase in demand from defense industries for consulting, development, and implementation services for advanced technologies. The demand is focused, among other things, on the implementation of AI solutions and training employees to use them, on the development of complex Embedded systems in Windows and Linux environments, on Python-based automation, and on the development of technological systems with high requirements for reliability, performance, and information security. "At the same time, we are seeing the entry of new initiatives and projects, indicating that the defense sector continues to be a significant growth engine for the Israeli technology market," he adds.
Salaries in the field are also on an upward trend. According to the group's data, in the first half of 2026, there was an average increase of 10% in the salary offered for technological positions in Defense Tech compared to the same period in 2025. The most prominent increase was recorded in Security Research positions, with an increase of 23%. In the salary offered to algorithm developers, there was an increase of 12%, and in AI Engineer positions, an increase of 5%. According to the group's data, the salary for Security Research positions ranges from 35 to 45 thousand shekels per month, and for senior profiles with unique specialization, it may reach 45 to 50 thousand shekels. Salaries for algorithmics positions range from 35 to 45 thousand shekels, depending on seniority and level of specialization.
The SQlink group identifies demand for engineers and development personnel with experience in AI, Embedded systems, computer vision, cyber, real-time systems, algorithmics, and complex systems. In addition, companies are looking for candidates with experience in multidisciplinary projects and long-term defense projects. According to Shahar Hazan, VP of Recruitment at the SQlink group, we are seeing a change not only in the number of positions but also in the preferences of candidates. If in the past many engineers and development personnel focused mainly on product companies and startups, today more technology personnel are open to opportunities in the defense industries. The combination of a technological challenge, job stability, long-term projects, and a sense of impact makes the field more attractive. At the same time, competition for candidates with experience in AI, algorithmics, Embedded, and cyber is increasing.
Alon Lifshitz, one of the founders of the investment fund Aurelius, which specializes in the field, also identifies the trend. According to him, the wars and recent geopolitical events are mainly a catalyst for a broader process, and not the only reason for the boom in the field. "The recent geopolitical events in Ukraine and the Middle East served as a wake-up call, but the dramatic leap in investments and demand for defense technologies reflects the entry into a prolonged era of global uncertainty," says Lifshitz. According to him, governments and investors today understand that it is impossible to rely on the solutions of the past. The fronts have changed, and now they range from multi-layered cyber defense to breakthroughs in space logistics and autonomous systems based on artificial intelligence. "Ultimately, the motivation for investment here is a unique combination: this technology not only creates giant industries and yields returns, it is the core of strategic relations between countries and the central tool that saves lives and ensures national resilience," he explains.
The Aurelius fund was officially launched in 2025 and focuses on Defense Tech and Dual Use technologies, which can be used in the military and civilian sectors. Among the companies it has invested in are Outpost Space, Shifters Robotics, GROW, and Majestic Labs. The SQlink group notes that the data is based on the group's recruitment activity and the demand it identifies among its clients in the Defense Tech fields.
