"Israeli Government Approves Urgent Increase in Foreign Workers Amidst Labor Shortage Due to the war

In response to the severe shortage of over 75,000 Palestinian workers in the Israeli construction industry, the government has swiftly approved an increase in foreign worker quotas from 30,000 to 50,000. This decision was made through an urgent telephone referendum, with the additional workforce being allocated in four increments of 5,000 foreign workers each, contingent on the actual staffing needs of each increment.

Prior to the recent conflict, approximately 220,000 Israeli workers were permanently employed in the construction industry, alongside around 76,000 Palestinian workers and an additional 25,000 foreign workers primarily involved in "wet jobs." In 2023, more than 9,700 foreign workers entered Israel through bilateral agreements with China and Moldova.

However, since the Israeli government declared a state of war on October 7, 2023, and imposed a blockade on Judea and Samaria, the number of workers at construction sites has significantly decreased. In fact, about half of the workforce engaged in wet jobs is currently unavailable. Furthermore, data from the Contractors Association indicates that between 100,000 and 140,000 Israeli workers, mainly in non-wet job roles, have been and will continue to be affected by the absence of wet works on construction sites, rendering them unable to work until these tasks can be resumed.

Given these challenges and the critical need to ensure the construction industry's functionality during wartime and future emergencies, the Israeli government has emphasized the importance of increasing the supply of foreign workers in the construction market.

This increase in quotas is considered necessary, even assuming that Palestinian workers may be allowed to enter in the future, as a severe labor shortage existed before the outbreak of the conflict. With the need to renovate damaged settlements, repair additional houses, and expand housing supply, the demand for labor is expected to rise significantly.

To address this gap in housing supply during emergencies and enable a more rapid response to severe labor shortages in the construction industry, a proposal has been made to establish an expedited mechanism for employing foreign workers who have previously worked in Israel. These workers, who have completed their work visas and returned to their home countries after five years, may be eligible for reentry during times of emergency.

Government estimates suggest a significant shortage of over 75,000 Palestinian workers. However, assuming that some sites will remain inactive due to the ongoing security situation, there is an estimated shortage of at least 20,000 workers in the coming months—both during and after the war.

To implement this decision, the Ministry of Construction and Housing will allocate NIS 19 million from its sources in 2024. The government has also tasked the foreign and interior ministers with taking the necessary actions to facilitate the signing of a bilateral agreement with India or other countries, as recommended by the inter-ministerial committee for bilateral agreements.

Additionally, the Ministry of Construction and Housing is actively exploring the use of innovative industrialized technologies for residential construction to reduce the workforce required and expedite construction. There are also efforts to streamline bureaucratic procedures to ensure worker safety in the construction industry.

Amidst concerns about the safety of construction workers during alarms and potential disruptions to the construction industry, stakeholders stress the importance of maintaining construction activities to prevent further delays in housing projects and potential price increases.

Raul Sargo, the president of the Ha'aretz Builders Contractors' Association, commended the government's decision to increase the number of foreign workers, emphasizing the industry's need for additional professional workers as long as the war continues. He urged the development of a comprehensive plan to ensure construction continuity during the conflict and the industry's full return to work once conditions permit.