Israel, as we all know, is the ‘startup nation’. In 2021, there were about 4,800 active startups – a decline from 2020, when there were 5,150 active startups. The number of jobs at such companies today is 35,340, representing an average of 7.4 per company.
And what about in Jerusalem? From among all startups, only about 360 (8%) operate in Jerusalem and its environs. Data published recently by the CBS indicates that most such companies (73%) operate in the Tel Aviv metropolitan area and central Israel, with 15% operating in Haifa and the north, and only 4% in the southern region.
In the Jerusalem area, about 30 new startups opened in 2021, 6% of all new startups in Israel for that year.
The average salary in startups is relatively high; in 2021 it was 23,060 ILS per month – twice the overall average salary (11,440 ILS). This gap widened for that year compared to 2020; in 2021 startup salaries increase by 7%, while the overall average salary increase by only 2.5%. The regions where startup salaries increased most were Tel Aviv (+10%), where the salary is also highest (25,620), and the south (+8.6%). Startup salaries in Jerusalem and its environs are relatively low; in 2021 the average was 18,730 ILS, an increase in +4.4% over 2020. Different factors could explain the wage gaps, including the mix of activity domains of the companies in the city.
There is one parameter in which Jerusalem is an overall leader in hi-tech (including veteran companies, too). The number of hi-tech employees in Jerusalem is 21,800, of whom 43% (9,300) are women – the highest percentage compared to Tel Aviv, Haifa and Israel overall, where the percentage of women is 33%-34%. The unusual gender distribution in Jerusalem may be impacted by the mix of activity domains of the companies, for example the high incidence of bio-tech in Jerusalem.
