Perlmutter Committee Report: Growth of the rate of employed in high-tech to about 545 thousand in 2026 and to about 700 thousand in 2035 should be allowed

The Committee for Increasing Human Capital in Hi-Tech, chaired by Dedi Perlmutter, was established following Government Resolution No. 212 of August 1, 2021, against the background of the goal set in the government’s guidelines to increase the proportion of employees in Hi-Tech to 15% of the workforce in the economy.

The Committee for Increasing Human Capital in High Tech was established following Government Resolution No. 212 of August 1, 2021, against the background of the goal set in the government’s guidelines to increase the proportion of people employed in high tech to 15% of the workforce in the economy.

The committee, chaired by Dedi Perlmutter, who was appointed by the Minister of Innovation, Science and Technology, Orit Farkash HaCohen, defined goals for integration into high-tech with a long-term vision and key directions of action to achieve them while referring to the existing manpower potential in Israel and the barriers and opportunities for increasing employment in the field.

The Ministry of Innovation, Science and Technology coordinated the committee’s work, and the members of the committee included representatives from the Ministry of Finance, the Innovation Authority, the Ministry of Innovation, Science and Technology, the Ministry of Economy and Industry, the Ministry of Education, the Labor Branch, the National Economic Council, as well as senior officials from academia , the business sector and the third sector.

In our era, technological innovation is a central generator of economic growth in the economy and an increase in labor productivity, and we are in the midst of a digital revolution which affects all branches of the economy, in light of this, the committee’s view is that in the long term the demand for workers with skills adapted to the dramatic changes in the labor market in general and in the high-tech field in particular, will continue to intensify, even beyond the high levels we are experiencing today. From the committee’s analysis, it emerged that the existing supply of skilled CAs does not meet the high demand for workers in tech jobs. In April 2022, the number of open jobs in the high-tech industry reached a peak compared to previous years and stood at 32,900 (of which, 21 thousand for technological jobs).

The overarching goal established by the committee is to increase the human capital with the required skills from those employed in tech jobs in Israel (technological professions and growth professions) in the short term (2026), medium term (2030) and long term (2035):

The committee’s view is that the significant long-term potential for increasing skilled human capital in tech jobs lies in increasing the employment of populations that are underrepresented in these jobs (women, ultra-Orthodox, Arabs and peripheral residents). In light of this, the committee formulated goals for the employment rate in tech jobs (in accordance with the new definition established by the committee) for the short and long term in accordance with the expected demand for workers in tech jobs and the potential for integrating populations:

Recommendations centrality

Human capital development is a long process that requires preparation in both the knowledge and skills required to cope and succeed in the changing world of work where the professions of tomorrow are expected to be fundamentally different from the professions of the present

The recommendations of the committee were built according to the different stages of life and the specific reforms required in each of the stages – education, military/national-civil service, academia/MHT, training and integration in industry and up to a lifelong learning process (Long Life Learning).

Also, the committee proposes that the government target for the proportion of people employed in tech jobs, be divided into two and stand for a short-term goal – to enable the growth of the proportion of people employed in tech jobs in Israel from approximately 453 thousand employed (approximately 14.4% of all employed in the economy) in 2021 to approximately 545,000 employed ( about 16% of all employed in the economy) in 2026.

Long-term goal – to allow the continued increase in the employed to about 690-770 thousand employed by the year 2035 (18-20 percent of all employed in the economy).

The education system

1. Increasing the number of those entitled to a ‘tech matriculation’ with an emphasis on populations in the zip code

Definition of a new study track – ‘tech matriculation’. This course of study includes 5 credits of mathematics, 5 credits of English (emphasis on English) and 5 credits of physics and/or computer science. It was recommended to set a goal for the education system to increase the rate of those eligible for the Tech matriculation from 9% in 2021 to 15% in 2028 by reducing the gaps between the various population groups

• Expanding the study of the English language – also for students who do not study matriculation technology

In the modern economy in the era of the digital revolution and in the high-tech industry in particular for its many technological and non-technological roles, extremely high oral and written expression abilities are required. It is about the ability to present a complex topic, conduct a discussion and debate on it. It was recommended to formulate a national plan to expand English language studies to the entire population with a special emphasis on Arab and ultra-Orthodox society

• Acquiring skills required to integrate into the future world of work and tech jobs

It was recommended that the education system work to impart POWER SKILLS, also called 21st century skills, while focusing on imparting 3 key skills – the ability to work in a team, the ability to solve complex/open problems and self-learning with an emphasis on developing the ability to withstand difficulties and learn from failures

Military service and national-civilian service frameworks

Military Service – It was recommended to adopt the goals of the defense system to integrate at least 30% of the social and geographic periphery in the technological professions by the year 2026, as well as the goal of increasing the number of women in the academic pool from 24% to 33%.

National service-civil technology- Forming an outline for a prestigious technological national-civilian service while giving priority to the integration of underrepresented populations that do not serve in the IDF.

the higher education system

Within the framework of the five-year plan for the years 2022-2026, the Ministry of Education and Culture promotes the High Tech 3.0 program, which is expected to significantly increase the number of students in high-tech professions, as well as to promote moves to integrate specializations and technological courses in degrees that are not in the high-tech professions, which will allow graduates of these degrees to integrate into the high-tech industry.

1. Increasing the number of graduates of high-tech degrees – to increase the number of new students for high-tech professions at a rate of about 4% per year, i.e. about 25% by the year 2018, with an emphasis on increasing the share of women and Arabs
2. Diversification and expansion of academic training for the high-tech and growth professions in addition to promoting processes for the academization of the growth professions
3. Improving the English level of graduates of the higher education system
4. Development of high-tech portfolios for science and engineering faculties that will study as two majors or degree after degree and the introduction of digital literacy and data science to most faculties
5. Preparation for the expected increase in the number of students in the years 2028-2033

Trainings and extra-academic programs

Formulation of a program to promote non-academic training targeting targeted populations, which includes measurement and evaluation of training effectiveness.

Technical and engineering studies in tech jobs

Increasing the number of students in study paths that lead to tech jobs, while at the same time reducing dropouts and increasing the rate of diploma recipients with an emphasis on targeted populations.

measurement

In the committee’s view, a paradigm shift is required in the way the high-tech field is viewed and a broader definition that optimally reflects the scope of demand and the skills required for the competitiveness of the Israeli economy in the digital world in general and the high-tech industry in particular Therefore, the committee recommends a new definition of “tech jobs” which will include all those employed between the ages of 25-64 in the high-tech industry (employed in technological professions and employed in the growth professions) as well as employed in a technological occupation outside the high-tech industry. This definition will enable the establishment of government policy based on a deeper understanding of the demand for human capital and the skills required to integrate into high tech, while taking into account the effects of the digital revolution on the entire economy.