Israel: 90,000 Departures in Two Years and $400 Million in Tax Losses

SadaNews - The Israeli newspaper Calcalist conveyed a negative picture about an expanding wave of emigration from Israel. A new study conducted by three senior researchers at Tel Aviv University (Professor Etty Atar, Professor Nitai Bergman, and Doron Zamer) reveals that approximately 90,000 Israelis left between January 2023 and September 2024, including 50,000 in 2023 and an additional 40,000 by September 2024, following years of 'relative stability' in the migration balance.

According to Calcalist, the researchers regard these numbers as a 'departure from equilibrium,' with the recent wave of emigration transforming into a qualitative phenomenon characterized by an increase in the number of high-income individuals, youth, and specialized human capital including doctors, engineers, and workers in science and technology.

The most alarming outcome, according to the newspaper, is the loss of 1.5 billion shekels (approximately 395 million dollars) from the state treasury in tax revenues during the mentioned period, a loss that would not have occurred had these individuals remained in Israel.

A Radical Shift in the Composition of Departures

Calcalist points out that the study employed a new methodology that distinguishes between actual immigrants and 'temporary travelers,' thereby undermining government claims that attempted to downplay the phenomenon by attributing it to immigrants from the former Soviet republics who utilized Israel as a 'transit station.'

The newspaper reveals that the representation of high-income individuals surged from a quarter of the emigrants to more than a third, indicating that Israel is losing key sectors in the labor market:

- Engineers

- High-tech specialists

- Freelancers

- Senior managers in the highest economic tiers

According to the report, the damage is not limited to income tax exceeding 1.5 billion shekels but also includes unlisted losses such as value-added tax, corporate taxes, and other contributions that these emigrants used to pay.

875 Doctors Departed

Calcalist describes the numbers of doctors as 'particularly alarming' as 875 Israeli doctors have left since January 2023, resulting in a net loss of 481 doctors after accounting for returnees.

The newspaper believes that this number represents a double blow to a system already suffering from a severe shortage, as those leaving are fully specialized doctors who have become integral to the sector. It emphasizes that 'the mass emigration of experienced doctors poses a direct risk to the health system.'

- 19,000 Academics and Engineers

Calcalist reports from the researchers that Israel is losing the essence of its human capital:

- 19,000 university degree holders

- 6,600 specialists in science and engineering

- 633 PhD holders, with a net loss of 224 researchers

More than 3,000 engineers also left during the same period, resulting in a net loss of 2,330 engineers after accounting for returnees.

The newspaper warns that these numbers provide clear evidence of the disintegration of the innovation base in Israel, and that the emigration of engineers and high-tech workers 'threatens the competitive edge of the entire economy.'

Calcalist adds that over 75% of emigrants are under 40, but the concerning aspect is the 'new shift' characterized by an increase in the number of departures of individuals over 40, which the researchers describe as a 'qualitative change' threatening the loss of accumulated expertise that cannot be replaced.

The Biggest Danger Lies Ahead

In conclusion, Calcalist warns that the danger is 'not immediate' but represents 'a significant strategic risk.' Israel relies on limited human capital concentrated in critical sectors, and 'does not need mass emigration for the systems to collapse,' as the mere departure of concentrated numbers of doctors, engineers, and scientists can 'open a vortex of decline that cannot be reversed.'

The newspaper relays the researchers' warning of a 'point of no return' where the structural damage to the economy becomes irreparable, leading to 'erosion of Israel's productive and innovative capacity.'