The rift in the Israeli human capital base widens with the acceleration of talent departure, in a development that economic analyses warn could turn into a permanent hemorrhage that is difficult to compensate for.
Bloomberg in its report said that "tens of thousands" have left the country over the past few years, while "returnees and new residents fail to bridge the gap," according to official data and academic analyses.
90,000 Departures and a Tax Gap in the Hundreds of Millions
Bloomberg based its findings on a study by Tel Aviv University which showed that about 90,000 Israelis left between January 2023 and September 2024.
The researchers described these numbers as a "significant and worrying increase" in the departure of doctors and graduates in science, computing, and engineering, who are among the highest-earning and most tax-contributing categories.
The study estimated that the departures paid over 1.5 billion shekels in income taxes in the year prior to their departure, roughly 490 million US dollars at today's rate.
The researchers clearly wrote: "The Israeli economy relies heavily on high-quality human capital concentrated in the high-tech industry and knowledge-intensive fields," warning that "the migration of these talents would be a severe blow to these sectors."
The Technology Sector at the Heart of Risk
The technology sector accounts for about 60% of Israel's exports, while its employees pay about a third of the total income tax, and any imbalance in this sector is reflected not only in the labor market but also in the public revenue base and the state's financing capability.
Although the central bank anticipated growth of 2.8% last year and 5.2% in 2026, Bloomberg reports that the aggregate indicators do not necessarily reflect the ongoing demographic shifts.
A government report also showed that 2025 experienced one of the slowest population growth rates in the country's history, with a second consecutive year of negative net migration.
Warnings of a Point of No Return
Economists - according to Bloomberg - warn of the possibility that the bleeding could become "irreversible," amidst the rise of religious nationalism and the ongoing state of war.
Dana Lavi, a specialist in recruiting technology talents, said the risk is particularly high "specifically for those with unique skills," adding that "the more specialized they are, the faster they are poached."
In a rare admission, Avi Simhon, the economic advisor to Prime Minister Benjamin Netanyahu, said: "Brain drain is something we prefer to avoid. It is a source of concern and we are doing what we can to limit it."
Testimonies Reveal Depth of Erosion
"Shiri," a designer in the technology sector who moved to the Netherlands, said that "the war was the straw that broke the camel's back," citing exhaustion caused by "political division, corruption, and the growth of religion in Israeli society."
A reserve doctor who served after October 7th said: "It could happen again because the Israeli government has decided that we will live by our swords."
"Naomi," who is studying law in the Netherlands, said she does not plan to return, explaining: "From the moment my son was born, we began to ask what kind of world we want to raise him in."
A survey showed that more than a quarter of Jewish Israelis are considering leaving, with a greater inclination among secular youth with high incomes, the category upon which the technology economy relies.
Although 76% said they feel safe inside the country compared to abroad, the war has not ended definitively, and regional tensions continue, according to Bloomberg.
