10 Million Shekel Dispute Leaves 50,000 Foreign Workers Stranded Abroad

Approximately 50,000 foreign workers remain outside of Israel due to a dispute over a 10 million shekel transfer, according to employers. They claim the Ministry of Finance has not yet transferred the funds to the Population and Immigration Authority, thereby delaying an increase in the quota for foreign workers entering the country. Sectors including construction, industry, and commerce are warning of significant impacts, such as project delays, production slowdowns, and increased costs.

The planned increase in the foreign worker quota was intended to allow approximately 50,000 additional workers into Israel. These workers were to be allocated across various sectors: 20,000 for construction, 15,000 for the metro project, and another 15,000 for industry and commerce.

The construction industry, which has faced a severe labor shortage since the outbreak of the war on October 7, 2023, is particularly vulnerable. Industry representatives warn that without the increased quota, construction pace will continue to suffer, projects will be delayed, and the labor shortage could eventually lead to higher housing prices.

Implementing the government-approved plan, according to Nitzan, would allow for the completion of worker quotas, maintain work continuity, and ensure the ongoing proper functioning of the construction sector, which is a key driver of the Israeli economy.