The construction industry was plunged into turmoil following a new directive issued this week by the Population and Immigration Authority, which prohibits private agencies from bringing foreign workers from India and Sri Lanka into the sector. The authority ruled that importing workers from these countries will be conducted exclusively through official bodies.
Alternatively, foreign workers can be brought in through private corporations only from countries such as Italy, Brazil, Hungary, Romania, Thailand, and Turkey. The Population and Immigration Authority claims the directive aims to prevent unauthorized labor from entering Israel and shifting into other sectors. The new regulation will take effect at the beginning of 2027.
Sixty percent of foreign workers in the construction and renovation sector come from India, meaning that the authority's decision could severely harm the industry. Currently, 95 percent of foreign workers in construction have been absorbed through the private track.
On the other hand, in the official bilateral track between India and Israel, 70 percent of the workers turned out to be unskilled, leading contractors to fire them. They were subsequently absorbed into casual labor in the catering and event industries. There are currently 220 foreign manpower corporations operating in Israel, which have brought 70,000 skilled workers to the country.
Eldad Nitzan, chairman of the foreign manpower corporations in the construction sector, said: "This decision by the Population and Immigration Authority is a disaster for the construction industry. It will lead to a severe labor shortage in the field and cause a further rise in the cost of living in housing."
"No country in the global market operates under such absurd agreements, which place a heavy burden on the private sector," he added. "The Population and Immigration Authority is constantly looking for moves that will put a spoke in the wheels of the economy and damage both the economy and the construction sector."