The rise is among which group(s) of Israeli Jews. My bet is the orthodox and very conservative Jews top them all, while the more secular Jews alone have birth rates lower than Israeli Arabs.
If true, then there is one problem with that. The orthodox usually decline to serve in the IDF.
The 10% or so of the Israeli population that is haredi usually claims religious student exemption. That’s less than half of the ‘Orthodox’ Israelis, the rest of whom are known as Dati Leumi. Dati Leumi are over-represented in military combat roles.