The construction industry in Israel is facing a significant challenge due to the absence of Palestinian workers, who have been almost completely cut off from working on construction sites since the Hamas massacre. This sudden halt in Palestinian labor has caused a standstill in construction projects across the country, posing a significant threat to the economy.
Before the halt in work permits, around 200,000 Palestinians were employed in Israel, with nearly half of them working in construction. Aharon Galili, a construction contractor, highlights the severe impact of the absence of Palestinian workers on the industry. His business relied heavily on Palestinian labor to keep projects running smoothly.
The decision to suspend work permits for Palestinians was made due to security concerns following the Hamas massacre. However, the consequences have been dire for both the Palestinian workers who have lost their livelihoods and the Israeli construction industry that is struggling to find a viable alternative. The government’s plan to replace Palestinian workers with labor from Asia has faced challenges, including higher costs and logistical issues.
Economists warn that the crisis in the construction sector could have far-reaching consequences for the Israeli economy. With a growing population and a high demand for housing, the lack of Palestinian workers has led to a significant decrease in construction projects. This could lead to a housing shortage and a subsequent rise in prices in the near future.
The impact of the construction crisis is already being felt in the West Bank, where unemployment rates have soared and the economy has been severely affected. The close economic ties between Israel and the Palestinian territories mean that
