Thai Workers Replace Israelis in Israeli Supermarkets Amid Labor Shortages
In recent years, Thai workers have increasingly filled roles in Israeli supermarket chains, becoming the majority of employees in food retail sectors such as produce, dairy, and meat departments. Israeli workers, some with over a decade of experience, report being dismissed and replaced by Thai laborers, who are described by employers as more compliant and dedicated despite earning about 70 shekels per hour. One Israeli employee shared, "I was called for a hearing after ten years here. They want the Thai workers because they do everything they're told without complaint." Another worker noted that Thai employees are "submissive, do not argue or complain, and follow orders," making them preferable to Israeli staff from a management perspective.
This shift is relatively new. Until mid-2024, foreign workers were barred from retail jobs, with permits limited to sectors like agriculture, construction, caregiving, and hospitality to protect Israeli employment in supermarkets. However, the outbreak of the "Iron Swords" war halted the entry of Palestinian workers, mobilized thousands of Israeli reservists, and displaced tens of thousands of northern and southern residents, creating severe labor shortages in food retail. Consequently, the government authorized the employment of foreign workers in retail for the first time.
Starting in June 2024, an initial quota of 6,400 foreign workers was approved for commerce and services, which doubled to 12,800 in 2025 and later increased to 25,000 due to demand. By March 2026, permits expanded to front-facing roles like cashiers, and in July 2026, an additional 5,000 permits were issued. Most foreign workers come from Thailand, India, and Sri Lanka, recruited directly or through specialized agencies, filling roles from stocking shelves to cashiering.
Supermarket representatives emphasize ongoing labor shortages and deny that foreign workers have caused Israeli layoffs, attributing dismissals to poor performance by some Israeli employees. One industry source said, "We need good workers, not necessarily Israeli ones," highlighting disparities in productivity and customer service across branches. Another noted that some Israeli employees are disengaged, focusing on passing time rather than working effectively.
This development reflects broader challenges in Israel's labor market amid security crises and demographic shifts, with foreign workers increasingly integral to sustaining essential retail services.