Third of Employees in Israel Report Lower Income Amid Wars

After more than two and a half years of conflict following the October 7 attacks and escalating tensions with Iran, The Times of Israel reports that one in three Israelis is earning less income as wartime financial pressures continue to mount. The findings come from a survey conducted earlier this month by the Israel Democracy Institute (IDI).

Daphna Aviram-Nitzan, co-author of the report, expressed hope that the findings will help shape and direct economic assistance efforts as Israel works to rebuild.

The poll, conducted between April 23 and May 10, found that 31% of workers (salaried and self-employed) in Israel are under financial strain as they contend with lower salaries or personal income from their business compared with the pre-war period. That was up from the 27% who reported financial damage from the Hamas war in a January 2026 survey, which was conducted about two months before the start of the latest US-Israel war with Iran.

The survey by the non-partisan think tank is based on a representative sample of 1,202 salaried and self-employed workers.

Aviram-Nitzan cautioned that the figures are a worrying sign of a deepening impact on the country’s working population, the backbone of the economy, following the US-Israel war with Iran, which broke out on February 28.

“The figures raise concern that we may remain in a new static situation, in which the population harmed by the war is left behind and unable to recover,” Aviram-Nitzan warned.

When Israel and the United States jointly launched attacks against Iran at the end of February, only essential businesses remained open, while much of the economy shut down. Although the Home Front Command later eased workplace restrictions to support economic recovery, many institutions, including schools, remained closed.

The report highlights that northern communities have suffered the greatest economic impact. Among residents surveyed, 51% reported a decline in income, 46% reported decreased local employment and business activity, and 38% reported having no financial reserves. On average, personal income declined by approximately 47%. Self-employed workers reported greater losses than salaried employees, with one in five saying their income had been cut nearly in half. High-income earners were also affected, with 26% reporting income losses.

The Fellowship’s financial security initiatives continue to serve as a lifeline for many people in Israel facing economic hardship. When we pray for peace, we are also praying for the health, safety, and well-being of Israel and its people—including their financial security.