While Israel faces political, economic, and security challenges, the phenomenon of large-scale population exodus and brain drain has turned into a demographic crisis. According to a report by Israel's Central Bureau of Statistics (CBS) published in December 2025, over 69,000 people left the country in 2025, double the average of the years before 2022. This negative net migration (after subtracting incoming immigrants and returnees) reached approximately 37,000 people, continuing for the third consecutive year. Israel's population reached 10.18 million by the end of 2025, but its growth rate declined from 1.6% to 1.1%.
This trend primarily involves educated youth and professionals. A November 2025 report by the Taub Center shows that 12% of Israeli PhD holders live abroad, and 6% of university graduates (54,778 people from 1990 to 2018) have stayed abroad for at least three years. The high-tech sector, which constitutes 20% of GDP, has been hit the hardest, with 25% of mathematics PhDs and thousands of engineers and doctors leaving. Main reasons include the high cost of living, political polarization, the impact of the Gaza and Lebanon wars, and a lack of trust in the future.
Opposition leader Yair Lapid warned in a Knesset committee that this "bleeding of human capital" threatens the economy and called for a governmental decision to prevent it. From January 2022 to August 2024, over 125,000 people left on a net basis, and this trend is expected to continue in 2026. However, some reports like the Algemeiner emphasize that incoming immigration (32,800 people in 2025) and the return of 23,800 people have partially offset the drain, but the departure rate of non-Jews is 8.1 times higher than that of Jews.
This crisis could lead to decreased investment, a decline in the real estate market, and pressure on the budget. Experts like the Taub Center predict that without reforms, economic growth will slow further. The Netanyahu government has not yet provided a decisive response, but this issue could influence upcoming elections.
