Israel is set to significantly bolster its construction sector by introducing approximately 70,000 foreign workers from various countries, including Sri Lanka, India, Thailand and others. This strategic move comes in response to the stagnation faced by the industry following the Oct. 7 Hamas attack, as reported by a major Israeli financial daily citing a government official.
Yehuda Morgenstern, the director general of the Construction and Housing Ministry, informed the Calcalist financial daily of the government's imminent plan to raise the foreign construction worker quota from the current 50,000 to 70,000. This decision follows a previous increase implemented in November, where the quota was raised from 30,000 to 50,000. This step was taken to mitigate the labor shortages in the housing sector, exacerbated by the barring of approximately 80,000 Palestinian construction workers from entering Israel in the aftermath of the Hamas attack on Israel.
Israel is considering importing 81,500 foreign workers in 2024 to reduce reliance on Palestinian labour, as reported by Israeli Kann News.
ā Middle East Eye (@MiddleEastEye) January 1, 2024
This major policy shift could transform the country's labour dynamics pic.twitter.com/vX3giLk0a9
The consequences of Hamas's aggressive and unprovoked attack have been far-reaching, not only affecting Israel but also significantly impacting the general Palestinian population. This population previously relied on the hundreds of thousands of Israeli work permits, which have been largely invalidated post-attack. Israeli citizens have expressed a reluctance to employ Palestinian workers, citing security concerns, especially since the October 7th assault involved intelligence gathered by Gazans who had been working in Israeli communities, some for over a decade.
Israel's economy has faced considerable challenges due to the ongoing conflict, with estimates suggesting a daily loss of over 1 billion Shekels. This includes the costs associated with accommodating nearly 200,000 displaced Israelis from the northern and southern borders. To address these challenges and expedite the rebuilding process, the introduction of foreign labor is deemed crucial.
200 agricultural workers from Sri Lanka arrived in Israel.
ā Documenting Israel (@DocumentIsrael) December 29, 2023
They came as a part of a bilateral agreement between Israel & Sri Lanka. The agreement is a strategic & important agreement that was signed in a short time to help the agricultural sector during the war and in general pic.twitter.com/rkg0EpeIPc
Morgenstern highlighted the increasing construction times, noting that the average duration for building construction in Israel has escalated from 27 months in 2014 and 30 months in 2021 to 34 months currently. This is attributed to the manpower shortage in the sector.
About 20,000 of the foreign workers will be brought in without bilateral agreements with their home countries. The workforce will be composed of individuals from China, India, Sri Lanka, and Moldova, with an anticipated 10,000 arriving in the first quarter.
When Hamas attacked Israel on Oct. 7 and Israel declared war, most foreign farm workers left the country and Palestinian workers were barred from entering Israel. That left the farming industry in desperate need.https://t.co/qxLCek97lD
ā PBS NewsHour (@NewsHour) December 27, 2023
Even if the 80,000 absent Palestinian workers were to return, Morgenstern believes that having additional foreign workers would be advantageous for the housing sector, given the prolonged construction timelines.
Furthermore, the ministry has proposed allowing approximately 10,000 Palestinians to participate in infrastructure projects located outside Israeli cities, in collaboration with local mayors. This initiative aims to not only advance these projects but also foster a cooperative environment conducive to future progress and stability.
