Israel to Halve Waiting Time for Foreign Construction Workers Amid Acute Labor Shortage

 In a significant move to tackle the deepening labor shortage in Israel’s construction industry, the government has canceled the professional selection stages for foreign workers entering through the private track. The change is expected to reduce the processing time by 50%, expediting the arrival of much-needed laborers. The decision follows persistent lobbying efforts by the Association of Foreign Manpower Corporations in the Construction Industry, alongside close cooperation with various government ministries and Knesset committees.

Eldad Nitzan, Chairman of the Association, welcomed the move:

"This decision will significantly shorten the process of bringing foreign workers by a full month, and marks an essential step in addressing the severe shortage of laborers, which has caused the halt or slowdown of hundreds of construction projects across the country."

The labor shortfall was exacerbated by the suspension of approximately 100,000 Palestinian construction workers from entering Israel following the October 7, 2023 attacks. The absence of this workforce has paralyzed large parts of the construction sector, putting immense pressure on both timelines and housing prices.

40,000 Foreign Workers to Arrive Post-Holidays

Nitzan confirmed that approximately 40,000 foreign workers are expected to arrive in Israel after the Tishrei holidays. These workers will come primarily from Vietnam, India, Sri Lanka, and Thailand and will be rapidly integrated into Israeli construction companies to help revive the housing boom.

The initiative is being led by Housing Minister Haim Katz and Housing Ministry Director-General Yehuda Morgenstern, in coordination with other agencies.

Call for More Manpower in Government Agencies

To further streamline the process, Nitzan called for an increase in staff at the Construction Division of the Population Authority, which has already succeeded in facilitating the arrival of 35,000 foreign workers.

“Adding more personnel could shorten the processing time by another 25%,” Nitzan added.

Push to Cut Foreign Worker Fees 

The Association is also engaged in discussions with the Ministry of Finance to implement the recommendation of the Directors’ Committee to cut foreign worker fees by 50%. This move is expected to reduce construction costs and lead to a 4–5% drop in apartment prices — the first meaningful decline in years.