Israel To Bring in 65,000 Foreign Workers To Replace Palestinians

The Israeli government announced on Sunday that it was issuing work permits to some 65,000 foreign workers hailing from India, Sri Lanka, and Uzbekistan to help mend the labor shortage that has left countless construction projects across the country unfinished.

Before the October 7 attack that thrust Israel into war in Gaza, there were almost 72,000 Palestinians employed on construction sites in Israel. Since the war erupted, the Israeli government has not allowed these Palestinians to return to work due to security concerns, leaving a gaping hole in the labor market that has brought construction in Israel to a standstill.

While 20,000 foreign workers remain in the country, almost half of all building sites have yet to resume work, prompting concerns that the delay in housing supply may lead to another surge in housing prices within Israel’s already competitive and expensive real estate market.

Israel’s Housing Ministry says the workers are expected to arrive within the coming weeks and that the government hopes to resume building as soon as possible to forestall further price increases as interest rates begin to fall.