Israel's New Exodus

The ‘Startup Nation’ is experiencing a massive brain drain—and the problem is only getting worse

- Yardena Schwartz

IN APRIL, AS HER FAMILY IN CENTRAL ISRAEL prepared to celebrate Independence Day, Rachel Ohal was preparing for what she calls “every Israeli’s dream.” The next morning, she awoke in her home in Los Angeles and drove to a cere mony to become an American citizen. She is one of at least 1 million Israelis residing in the United States. And if Israel—home to 8.8 million people—doesn’t change course, many more may soon join her.

Israel celebrates its 70th birthday in May with the opening of the U.S. Embassy in Jerusalem. Yet the country is grappling with an existential crisis—one that doesn’t involve Iranian nukes or Palestinian protests. Spurred by the high cost of living, low salaries, and political and demographic trends, Israelis are leaving the country in droves, trying to build their lives elsewhere, mostly in the United States. Many of these young Israelis are moving to big cities, and yet, even in these often expensive places, they see more opportunities to advance.

The available data is telling, analysts say. Between 2006 and 2016, more than 87,000 Israelis became U.S. citizens or legalized permanent residents, according to the most recent data from the U.S. Department of Homeland Security. That’s up from 66,000 between 1995 and 2005. These figures take into account only those who took the legal route (many Israelis, analysts say, arrive on temporary tourist, student or work visas, then stay). And in addition to the Israelis now living stateside, according to the country’s Ministry of Immigrant Absorption, hundreds of thousands have moved to Europe, Canada and elsewhere.