Israel increases foreign worker quotas to replace Palestinian labor

Israel is accelerating its transition from Palestinian labor to foreign workers to address acute shortages and implement an “economic security strategic” vision. The Israeli Ministry of Economy and Industry has approved an additional quota for 5,000 foreign workers to serve the trade and services sectors, including retail, event halls, and automotive garages.

Since October 7, 2023, the number of Palestinian workers in Israel has dropped significantly, from an estimated 150,000 regularly entering the country to approximately 20,000 currently working, mostly in vital institutions outside the Green Line. To fill this gap, Israel is increasing its foreign workforce, which currently stands at 250,000 workers (including legal and undocumented) and is projected to reach 330,000.

Economy Minister Nir Barkat stated that the era of the Israeli economy being dependent on the Palestinian Authority is over. Supported by Prime Minister Benjamin Netanyahu, the government aims to replace Palestinian workers with laborers from “countries of peace.” While employers praise the efficiency and reliability of foreign workers, concerns have been raised regarding the adequacy of housing provided to these workers as the population grows.