Israel Faces 40,000 Worker Shortage in Construction, Palestinian Labor Unlikely
Translated & summarized from Davar by baba
Israel's construction sector faces a shortage of 40,000 workers, with Chairman of the Histadrut Arnon Bar-David expressing doubt about the return of Palestinian laborers. The industry relies heavily on foreign workers, and officials are discussing ways to streamline their import and improve working conditions. Efforts include reducing fees for contractors and implementing new safety regulations for foreign workers. The government aims to bring in more foreign workers to boost construction starts and economic growth.
The story in 6 lines · by baba
- Israel's construction industry is short 40,000 workers, according to Histadrut Chairman Arnon Bar-David.
- Palestinian workers are unlikely to return to the construction sector in the near future.
- The industry relies on 73,000 foreign workers, with efforts to increase their numbers ongoing.
- Officials are discussing reducing fees for labor contractors and improving worker conditions.
- New safety regulations for foreign workers will take effect on October 16th.
- The government aims to increase housing starts by bringing in more foreign labor.
The Israeli construction sector is facing a significant deficit of 40,000 workers, despite efforts to bring in foreign labor, according to Arnon Bar-David, Chairman of the Histadrut (General Organization of Workers in Israel). Speaking at a conference for the Construction and Allied Industries Workers Union and the Daf Hadash Association, which represents foreign labor contractors, Bar-David emphasized the critical need for a strong construction industry to drive economic growth. He noted that by the end of 2025, 73,000 foreign workers were employed in the sector, yet the shortage persists.
Bar-David also expressed skepticism about the return of Palestinian workers to the construction industry in the near future. He advocated for a balanced approach, drawing on both Israeli and foreign labor, to move the industry forward. Mazal Golan, Chairwoman of the Construction and Allied Industries Workers Union, echoed the sentiment, stressing the importance of the contractor model for organized and supervised foreign labor and opposing the entry of additional foreign construction companies, particularly for the Metro project, fearing it would harm Israeli companies.
Knesset Member Eti Atiya, Chairwoman of the Special Committee on Foreign Workers, highlighted the need to reduce fees and permit costs for contractors and employers, a move currently stalled due to upcoming elections. She believes these costs should be integrated into the state budget. Ari Alexelsi, CEO of the Daf Hadash Association, representing over 160 labor contractors employing more than 40,000 foreign workers, discussed efforts to lower fees and increase housing cost deductions for foreign workers. He also mentioned a successful petition to the High Court of Justice that reduced the phenomenon of "absconders" by 90%.
Yehuda Morgenstern, Director General of the Ministry of Construction and Housing, stated that the private (B2B) labor import model, initially a temporary solution after October 7th, has proven beneficial and is being considered for continuation, despite some concerns from the Ministry of Justice regarding worker rights. He reiterated the need for 40,000 additional workers to reach the target of 75,000 new housing starts, noting that each foreign worker indirectly creates jobs for Israelis.
Robi Shemesh, Director General of the Ministry of Labor, indicated that the previous goal of reducing foreign workers is no longer relevant, with a new target of approximately 330,000 foreign workers. He confirmed ongoing efforts to sign bilateral agreements with various countries, while also supporting private labor import channels for speed. The Ministry of Labor is working to improve inter-agency interfaces to facilitate this process. New safety regulations, including an eight-hour training for new foreign workers and updated site safety protocols, are set to take effect on October 16th.
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