Israel Increases Foreign Worker Quota to Address Construction Labor Shortage

Following an unprecedented shortage of skilled labor in Israel's construction sector caused by the halt of approximately 120,000 Palestinian workers after the Simchat Torah 5784 events, the government has approved an increase in the foreign worker quota. The quota for foreign workers was raised from 3.3% to 3.8% of the total population, enabling the immediate arrival of around 50,000 additional foreign workers. Of these, 20,000 are designated for the construction industry, 15,000 for the national metro project, and 15,000 for the industrial and commercial sectors, which also face labor shortages.

This move came after foreign manpower corporations in the construction sector appealed to Justice Minister Yariv Levin, highlighting that the legal cap on foreign workers was the main obstacle preventing the full utilization of the approved quota of 120,000 foreign workers. Despite the approval, only about 85,000 foreign workers were employed due to this legal limitation, threatening the pace of construction, infrastructure development, and housing delivery.

Eldad Nitzan, chairman of the foreign manpower corporations in construction, expressed gratitude to Minister Levin for approving the increase, emphasizing that the decision was crucial to restoring full operational continuity in the construction sector, which is a key growth engine for the Israeli economy. The collaboration involved the Ministry of Housing, Ministry of Interior, and other relevant bodies to facilitate the recruitment and integration of thousands of skilled foreign workers.

The expanded quota aims to prevent further slowdowns in construction projects, avoid delays in national infrastructure initiatives, and mitigate rising housing prices, thereby supporting the broader Israeli economy.