Israel's Reliance on Foreign Workers Harms Local Labor and Economy
Translated & summarized from Maariv by baba
Israel's reliance on foreign workers is causing significant economic harm and negatively impacting its most vulnerable citizens, according to author Dror Litvak. The unchecked influx of foreign labor, with 242,000 employed in 2024, leads to tax evasion and lost revenue, estimated at 500 million shekels annually in construction alone. The government is also providing 500 million shekels in annual tax benefits to foreign workers, while Israeli workers are treated harshly. Litvak urges the government to halt permit issuance, reform tax benefits, increase enforcement, and redirect training funds to Israeli workers.
The story in 6 lines · by baba
- Israel's reliance on foreign workers is causing significant economic harm and impacting vulnerable Israeli employees.
- Approximately 242,000 foreign workers were employed in Israel in 2024, earning over 17 billion shekels.
- Tax evasion and undeclared payments in the construction sector alone cost the state up to 500 million shekels annually.
- Israeli taxpayers subsidize foreign workers with an estimated 500 million shekels in annual tax benefits.
- The author calls for halting permit issuance, reforming tax benefits, and increasing enforcement against undeclared work.
- The government is urged to redirect training and incentive budgets back to Israeli workers.
Israel's extensive reliance on foreign workers, particularly in sectors like construction, is causing significant economic damage and harming its most vulnerable Israeli employees, according to an analysis by Dror Litvak. The unchecked influx of foreign labor displaces local workers, potentially leading to a rapid increase in unemployment despite current low rates. In 2024, approximately 242,000 foreign workers were employed in Israel, earning over 17 billion shekels. However, this system is plagued by widespread tax evasion and undeclared cash payments, especially in construction, costing the state up to half a billion shekels annually in lost tax revenue from this sector alone.
Instead of collecting proper taxes, the state is overlooking substantial amounts of untaxed income, which undermines fair competition and the public purse. Furthermore, Israeli taxpayers are subsidizing foreign workers through tax benefits and credits estimated at 500 million shekels per year. The author argues there is no economic or moral justification for Israeli citizens to fund tax benefits for foreign workers earning significantly more than in their home countries, while the state treats Israeli workers harshly, simply because they are easier to tax.
Litvak calls for immediate government action, including halting the uncontrolled issuance of work permits, re-evaluating tax credits and benefits for foreign workers, and significantly increasing enforcement against undeclared employment. He also advocates for redirecting training and incentive budgets back to Israeli workers. The incoming government must make strategic decisions, demonstrating national courage and responsibility by stopping the uncontrolled permit flow, canceling unjustified tax benefits, intensifying enforcement against undeclared work, and sharply shifting training budgets back to all sectors of Israeli society. A healthy society cannot build its future on imported labor, and the government must prioritize the Israeli worker.
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