The Ministry of Economy was founded at 1949 as the Ministry Industry and included divisions and units related to commerce and employment as well.​​

Roles and Responsibilities

The Ministry changed its name several times to reflect changes in responsibilities and emphases over the years for various political and functional reasons.

During the first thirty years of its existence, the ministry was named The Ministry of Commerce and Industry. In 1978, the name changed to the Ministry of Industry, Trade and Tourism. Three years later, a separate Ministry of Tourism was established and the ministry was renamed once again, becoming the Ministry of Industry and Trade, a name that indicated the priority given to industry over trade.

In 2003, Ehud Olmert was appointed Minister of the expanded ministry that now also included the Ministry of Labor (which had previously been part of the Ministry of Labor and Welfare) and the ministry became the Ministry of Industry, Trade and Labor. In 2013, Naftali Bennet was appointed the minister and the ministry name had changed to its current name, the Ministry of Economy.

The Ministry of Economy is a major, leading economic entity within the Israeli government that aggregates many tools designed to encourage economic growth in Israel, develop human capital and promote international trade and commerce. The ministry focuses on enhancing and realizing the potential of Israel's human capital, enforcing compliance with legislation, and initiating new legislation related to employment, consumerism, international commerce, trade restrictions, safety, education, research, development, innovation, cost of living, and more.

The roles of the ministry have changed over the years and its name changes reflected them. The ministry's roles include creating workplaces, particularly in national priority areas and for special populations such as the ultra-orthodox, minority groups, single parents and the disabled. In addition, the ministry strives to increase exports in order to promote economic growth, expand investments in the industries, research and industrial development; develop tools to fund and support industries, businesses and investors; raise consumer awareness; enforce rules of fair trade; develop human capital, the education system and technological training; increase availability of day care centers and nurseries; and tighten enforcement of labor laws and of health and vocational safety, including at sports facilities.

The Ministry of Economy ancillary units includes the Israel Laboratory Accreditation Authority, Consumer Protection and Fair Trade Authority, National Physics Laboratory, Israel Diamond Institute, Israel Export Institute, Israel Institute for Occupational Safety and Hygiene, and the Israel Employment Service.

Several important issues are at the top of the priority list of the Ministry of Economy:

• Create job opportunities based on stable economic and business needs, giving priority to peripheral areas and localities with high unemployment rates.
• Help develop and secure efficient, profitable and competitive industries in Israel to lead the expedited growth in the Israeli economy.
• Develop Israel's international financial activity while specifically focusing on developing tools to increase exports. This will guarantee massive foreign investments in Israel, raise interest in the Israeli market and increase the market's attractiveness for investors.
• Expand economic collaboration and trade relations with countries in the region in order to maximize the relative advantages of each and every country.
• Develop diverse education and technological training, promote Israel's human capital in order to enhance human infrastructure based on the needs of the economy and industries.
• Initiate policies and programs for replacing foreign workers with Israeli ones in the construction, agriculture and industry sectors.
• Initiate policies to integrate and increase employment rates within special populations such as the ultra-orthodox community, minorities, single parents and income support recipients, populations that are difficult to employ, and handicapped and disabled people.
• Promote industrial R&D as a means for developing a rich knowledge-based industry that will foster all of Israel's relative advantages and identify novel, innovative trends in international industries.
• Increase financial competitiveness and prevent damage caused to the economy by cartels and monopolist activity.
• Encourage consumer awareness within the public and maintain fair trade laws that guarantee the wellbeing of the individual and increase competitiveness in the market.
• Tighten enforcement of labor laws in order to guarantee fair salaries and terms of employment.
• Develop funding tools that are external to the budget – Use national budgets wisely to develop incentives that will encourage the capital market to help fund development and industry initiatives.

Ministry Units

The Ministry of Economy is comprised of headquarters units and districts that provide services for the public, as well as internal and affiliated units that bear a wide range of responsibilities, while the vast majority of these units focus on key financial aspects of the Israeli economy.

The headquarters units include the minister and Director General's offices. Deputy Director General's and employment supervisor office. Ministry accounting division. Internal auditing. Spokesperson, publications and public inquiries. The legal division. Research and economic planning administration. Information and technology systems, planning and control, and price monitoring division. 

The four districts of the ministry are: Beersheba and southern Israel, Haifa and northern Israel, Tel Aviv and Central Israel and Jerusalem.

In addition to the headquarters units and four districts, the Ministry of Economy includes ministerial and affiliated units that are involved in various aspects of industry, trade and employment.

The ministerial and affiliated units include the Investment Center. Small and Medium Business Agency. Standardization Administration. Environment and Sustainable Development Administration. Registrar of Cooperative Societies. Supervisor of Weights, Measurements and Standards. National Physics Laboratory. National Laboratory Accreditation Authority and other units that are responsible for employment-related activities including: the Employment Relations Unit, Regulations and Labor Law Enforcement Administration, Commission for Equal Opportunities at the Workplace, and the Daycare Centers Division.