Breaking Update
One Quarter of Israeli Businesses Report Closures or Minimum Operations Due to War with Iran
One quarter of Israeli businesses are closed or operating minimally due to the war with Iran, affecting small businesses most severely.
Jerusalem, 19 March, 2026 (TPS-IL) — Following the star of Operation “Roaring Lion” against Iran, which began on February 28, 2026, Israel’s Central Bureau of Statistics conducted a flash survey to examine the state of businesses. The survey data was collected between March 10 and March 12, and reflects managers’ reports on the employment situation and the impact on their company in March 2026.
About one in four businesses in Israel are in a state of temporary closure/minimum employment. Only about 6% of businesses in the high-tech and financial industries are in this state, compared to about 47% of businesses in the food and beverage services industries (restaurants and event halls).
About 44% of businesses reported a routine level of employment (higher than 81%). This estimate also showed high variation across industries. About 71% of businesses in the high-tech and financial sectors maintained a high level of employment despite the state of emergency, while significantly lower rates were estimated in the food and beverage services and construction sectors (22% and 38%, respectively).
Similar to previous emergency periods, the impact of the war on employment in small businesses is more negative than in large businesses. Approximately 31% of small businesses (with 5-10 employee positions) are at minimum employment/temporary closure, compared to only 4% of large businesses.
About 32% of managers estimated that their company’s revenue will be severely affected (more than 50%), and about 24% of managers estimate that there will be no damage to revenue or a slight damage (up to 10%).
About 44% of managers in the food and beverage services industry estimate that their company’s revenue in March will be severely affected. The estimate received in this industry during the “With a Dog” campaign was higher – 65%.
Only about 6% of managers in high-tech industries estimate that their company’s revenue in March will be seriously affected.
