Israeli Economy Minister Opposes Returning Palestinian Workers, Plans to Increase Foreign Labor Quota

Israeli Economy Minister Nir Barkat announced that the government will increase the quota for foreign workers while firmly opposing the return of Palestinian workers to Israel. Speaking at a Likud event in Jerusalem, Barkat detailed his ministry's economic policies amid the ongoing war, emphasizing support for Israeli soldiers and the labor market. He recounted hosting soldiers from "Force 100" at his home, hearing firsthand about their difficult experiences during months of fighting, and criticized Channel 12 for airing reports he said unfairly blamed frontline soldiers. Barkat also highlighted the establishment of a legal aid fund for soldiers facing lawsuits abroad, led by Professor Moshe Cohen-Eliya.

Regarding the contentious issue of Palestinian laborers, Barkat stated he opposed their return from the war's outset and fought against it within the security establishment. Instead, Israel has significantly expanded employment of foreign workers from countries with peace ties, growing from 24,000 Palestinian workers before the war to 52,000 foreign workers now. He stressed these workers contribute to the economy without the security risks associated with Palestinian labor. Barkat announced plans to further increase the foreign worker quota, with a decision expected soon following discussions with Justice Minister Yariv Levin and Prime Minister Benjamin Netanyahu.

Barkat also highlighted Israel's growing international stature, noting expanding trade ties with Asia and advanced negotiations on a free trade agreement with India expected within the year. He pointed to Israel's economic resilience during wartime, with exports reaching $169 billion in 2025 and projected growth of about 5%. He emphasized regulatory reforms aimed at increasing competition and lowering living costs, citing expected price drops in electrical goods and other regulated products due to market liberalization.