Israel Faces 40,000 Worker Shortage in Construction Sector
Translated & summarized from Davar by baba
Israel's construction sector faces a shortage of 40,000 workers, according to Histadrut Chairman Arnon Bar-David. Despite employing 73,000 foreign workers by late 2025, the deficit remains significant. Officials discussed various solutions including reducing fees for labor corporations and improving safety training for foreign workers. Palestinian workers are not expected to return soon, and the focus remains on managing foreign labor recruitment effectively while ensuring worker rights and industry stability.
The story in 6 lines · by baba
- Israel's construction industry is short 40,000 workers, despite employing 73,000 foreign laborers by the end of 2025.
- Histadrut Chairman Arnon Bar-David expressed doubt about the imminent return of Palestinian workers to the sector.
- Officials are working to reduce fees for foreign labor corporations and improve safety training for foreign workers.
- The foreign labor corporation model is advocated as the standard for regulated recruitment and worker protection.
- There is ongoing debate regarding the merits and risks of private versus bilateral foreign worker recruitment models.
- New safety training regulations for foreign workers will take effect on October 16, requiring eight hours of instruction.
Israel's construction industry is experiencing a significant deficit of 40,000 workers, despite the influx of 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 "Daf Chadash," an organization representing foreign labor corporations, Bar-David emphasized the need for collaboration between workers and employers to strengthen the sector. He noted that as of the end of 2025, there were 73,000 foreign workers in construction, yet the shortage persists.
Bar-David also expressed doubt about the imminent return of Palestinian workers to the construction sector, advocating for a balanced approach that relies on both Israeli and foreign labor. He stressed that a strong construction industry is vital for economic growth.
Knesset Member Eti Attias, chairwoman of the Special Committee for Foreign Workers, highlighted efforts to reduce fees and licensing costs for foreign labor corporations, which have been delayed due to upcoming elections. She called for these reductions to be integrated into the state budget to support businesses and boost construction.
Mazzal Golan, chairwoman of the Construction and Allied Industries Workers' Union, advocated for the foreign labor corporation model to be the standard in the construction industry, ensuring a regulated and responsible framework for foreign workers. She also voiced opposition to the introduction of additional foreign construction companies, particularly for the Metro project, arguing it would harm domestic firms and the industry's independence.
Ari Alexelsi, CEO of "Daf Chadash," representing over 160 foreign labor corporations, discussed the association's work in reducing fees and adjusting housing cost deductions for foreign workers. He claimed a 90% reduction in "absconders", workers who arrive for construction but switch to other sectors, following legal action. Alexelsi stressed the importance of the private recruitment model for bringing in skilled foreign workers.
Yehuda Morgenstern, CEO of the Ministry of Construction and Housing, stated that the private recruitment model, initially a temporary solution post-October 7, has shown significant advantages and is being considered for continuation. However, the Ministry of Justice has raised concerns about worker rights and human trafficking. Morgenstern added that the goal is to reach 75,000 new housing starts, requiring an additional 40,000 workers, and noted that each foreign worker indirectly creates jobs for Israelis.
Robi Shemesh, Director General of the Ministry of Labor, indicated that the previous aim to reduce foreign workers is no longer relevant, with a new target of approximately 330,000 foreign workers. He acknowledged the need for improved inter-ministerial coordination and emphasized ongoing efforts to sign bilateral agreements while remaining flexible on private recruitment channels to expedite worker arrivals.
Chazai Schwartzman, Chief, presented new safety training regulations for foreign workers, effective October 16, requiring eight hours of training in the worker's language. Moshe Ba'gad, Director General of the National Institute for Safety and Hygiene, offered safety training services in multiple languages to construction companies and foreign labor corporations.
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