The time of Jacob's trouble is for all Israel. But that little nation of Israel is not all of Israel.
Not as though the word of God hath taken none effect. For they are not all Israel, which are of Israel: 7 Neither, because they are the seed of Abraham, are they all children: but, In Isaac shall thy seed be called.
Or, what he was saying is not all the people called the Jews are all of Israel--- the Jews did not have the birthright of the OT, but rather the house of Joseph.
Much of the northern tribes dispersed and became "lost" (but not to God) and never, ever yet returned to the land of Israel. They don't know who they are, and indeed believe they are Gentiles. They already fulfilled their destiny to become many nations as it is written:
And God said unto him, Thy name is Jacob: thy name shall not be called any more Jacob, but Israel shall be thy name: and he called his name Israel. 11 And God said unto him, I am God Almighty: be fruitful and multiply; a nation and a company of nations shall be of thee, and kings shall come out of thy loins;
And again referring to the genealogical branches that would become these nations....
And now thy two sons, Ephraim and Manasseh, which were born unto thee in the land of Egypt before I came unto thee into Egypt, are mine; as Reuben and Simeon, they shall be mine......
And Joseph took them both, Ephraim in his right hand toward Israel's left hand, and Manasseh in his left hand toward Israel's right hand, and brought them near unto him......
And when Joseph saw that his father laid his right hand upon the head of Ephraim, it displeased him: and he held up his father's hand, to remove it from Ephraim's head unto Manasseh's head.
18 And Joseph said unto his father, Not so, my father: for this is the firstborn; put thy right hand upon his head.
19 And his father refused, and said, I know it, my son, I know it: he also shall become a people, and he also shall be great: but truly his younger brother shall be greater than he, and his seed shall become a multitude of nations.
And what of these exiles and new nations? It brings to mind Hosea:
Then said God, Call his name Loammi: for ye are not my people, and I will not be your God.
10 Yet the number of the children of Israel shall be as the sand of the sea, which cannot be measured nor numbered; and it shall come to pass, that in the place where it was said unto them, Ye are not my people, there it shall be said unto them, Ye are the sons of the living God.
11 Then shall the children of Judah and the children of Israel be gathered together, and appoint themselves one head, and they shall come up out of the land: for great shall be the day of Jezreel.
So, in the place of their exile, we see that they are not recognized as God's people, yet they would be known as the sons of the living God. There's only one place in the NT that reminds me of that:
But as many as received him, to them gave he power to become the sons of God, even to them that believe on his name:
So these are the spiritual seed of Abraham embracing what we would call Christianity, but unbeknownst to themselves are actually the physical seed of Abraham as well as there would be many who believed in Christ and bring the gospel to the world (aka "Christian nations") as a glorious forerunner of the Kingdom age when the Lord would (yet to be) make a new covenant with them saying:
Behold, the days come, saith the Lord, that I will make a new covenant with the house of Israel, and with the house of Judah....
One group are the Israelites, and the others Judah (the Jews). These Ezekiel calls the "two sticks" to be rejoined in the end times, which historically has not occurred yet:
Moreover, thou son of man, take thee one stick, and write upon it, For Judah, and for the children of Israel his companions: then take another stick, and write upon it, For Joseph, the stick of Ephraim and for all the house of Israel his companions:
17 And join them one to another into one stick; and they shall become one in thine hand.
18 And when the children of thy people shall speak unto thee, saying, Wilt thou not shew us what thou meanest by these?
19 Say unto them, Thus saith the Lord God; Behold, I will take the stick of Joseph, which is in the hand of Ephraim, and the tribes of Israel his fellows, and will put them with him, even with the stick of Judah, and make them one stick, and they shall be one in mine hand.
20 And the sticks whereon thou writest shall be in thine hand before their eyes.
21 And say unto them, Thus saith the Lord God; Behold, I will take the children of Israel from among the heathen, whither they be gone, and will gather them on every side, and bring them into their own land:
22 And I will make them one nation in the land upon the mountains of Israel; and one king shall be king to them all: and they shall be no more two nations, neither shall they be divided into two kingdoms any more at all.
I could say more, but I'll stop here. But one can see that little nation of Israel is just the starting point, there's a mass return yet to occur as Jeremiah 30 attests to:
Behold, I will bring them from the north country, and gather them from the coasts of the earth, and with them the blind and the lame, the woman with child and her that travaileth with child together: a great company shall return thither.
That is to say, this verse follows after Israel "found grace in the wilderness (i.e. their exile)"