Israel Increases Foreign Worker Quota to Address Construction Labor Shortage

The Israeli construction sector has faced an unprecedented shortage of skilled labor following the complete halt of approximately 120,000 Palestinian workers entering the country since the events of Simchat Torah 5784. These workers had formed the backbone of construction sites nationwide. This stoppage caused a significant slowdown in the industry. However, the sector managed to partially close the gap by recruiting thousands of foreign workers through private manpower corporations, in cooperation with the Ministry of Housing, Ministry of Interior, and other relevant bodies. Despite an approved quota of 120,000 foreign workers, only about 85,000 were employed, leaving a critical shortfall that threatened construction projects, national infrastructure development, and timely housing delivery.

The main obstacle to filling the full quota was a legal cap limiting foreign workers to 3.3% of Israel’s total population. In response, foreign manpower corporations in the construction industry urgently petitioned Justice Minister Yariv Levin to use his authority to raise this limit to 3.8%. The petition highlighted that the labor shortage was causing ongoing delays in national projects, rising housing prices, and broad economic harm. Minister Levin approved the request, enabling the immediate arrival of approximately 50,000 additional foreign workers. Of these, 20,000 are designated for construction, 15,000 for the national metro rail project, and 15,000 for industry and commerce sectors also facing labor shortages.

Eldad Nitzan, chairman of the foreign manpower corporations in construction, expressed gratitude to Minister Levin and emphasized the necessity of the quota increase to restore full operational capacity to the sector. He described construction as a key engine of the Israeli economy and expects the expanded workforce to drive growth and project continuity.

This development marks a significant step toward resolving the labor crisis in Israel’s construction industry and supporting critical infrastructure and housing initiatives nationwide.