Tech Workers Flee Israel Amid War, Politics, and Cost of Living

Conflict, political instability, and high costs drive thousands of tech employees out of the 'startup nation'

Mar. 14, 2026 at 8:37am

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As Israel's tech sector grew in the 1990s, so too did the number of tech workers. But in recent years, thousands have left the country, citing a combination of factors including ongoing conflicts, political instability, and the high cost of living. Tech workers like Elizabeth Schwartz Cohen, Erez Schneider, and Cassio Leens have all relocated, with many citing the desire to be closer to family, better financial opportunities, and an escape from the constant state of war as reasons for their departures.

Why it matters

Israel's tech industry has been a major driver of the country's economic growth, but the exodus of skilled tech workers poses a threat to this vital sector. Experts warn that Israel's economy is heavily reliant on high-quality human capital, especially in knowledge-intensive industries like tech. The brain drain could have significant long-term consequences if it continues unabated.

The details

Between October 2023 and July 2024, around 8,300 high-tech employees, or 2.1% of the total, left Israel. Factors driving this exodus include the ongoing conflicts with Hamas, Hezbollah, and Iran, as well as political instability stemming from Prime Minister Benjamin Netanyahu's proposed judicial overhaul. Additionally, the high cost of living in tech hubs like Tel Aviv, which ranks 16th globally among the most expensive cities for international professionals, has made it difficult for workers to justify staying, especially as they start families.

  • In October 2023, the conflict between Israel and Hamas escalated, leading to increased missile alerts and the need to seek shelter in Tel Aviv.
  • In June 2025, a conflict broke out between Israel and Iran, prompting many tech workers to leave the country immediately, even with their families.
  • In 2023, Prime Minister Benjamin Netanyahu launched a legislative push to tilt the balance of power away from the courts and toward the Israeli government, contributing to political instability.

The players

Elizabeth Schwartz Cohen

A 34-year-old American tech worker who moved to Israel in 2018 but left in 2024, citing the ongoing conflicts, cost of living, and a desire to be closer to family as she prepared to give birth.

Erez Schneider

A 39-year-old Israel-born product manager who worked in Israel's tech sector for 17 years before moving to Switzerland in 2024, citing the political climate as a key factor in his decision to leave.

Cassio Leens

A 36-year-old Brazilian fraud analyst at an Israeli fintech company who moved to Israel in 2020 but has been considering leaving since October 2023 due to the constant state of war.

Itai Ater

An economics professor at Tel Aviv University who believes political factors and the cost of living are driving people out of Israel's tech sector.

Reuven Rivlin

Israel's president from 2014 to 2021, who is now leading the Israeli fintech company BitCore's bid with the Lava Foundation to launch a digital shekel, and who acknowledges the brain drain issue needs to be addressed.

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What they’re saying

“It's either about priorities shifting, wanting to return to be close to family when you enter that life phase, financial incentives, or maybe just the war and just not wanting to raise your kids around the alarms.”

— Elizabeth Schwartz Cohen

“For the first two years I was working, I was happy to take a lower salary compared to New York City, just because I was so happy to be in Israel. Once I got married and later became pregnant, my priorities shifted.”

— Elizabeth Schwartz Cohen

“I'm always thinking about it, but I'm not going to do it.”

— Erez Schneider

“At the beginning of the outbreak of the war with Hamas, you'd read in the news about community and people coming together. It didn't feel like that. It felt like war.”

— Cassio Leens

“I didn't really want to start a family away from my family. I felt like I really needed my mom.”

— Elizabeth Schwartz Cohen

What’s next

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The takeaway

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