Israel is grappling with a severe labor shortage, prompting the country to seek help from migrant workers in India. The demand for workers has increased due to a combination of factors, including the revocation of work permits for Palestinians from Gaza and the West Bank on security grounds and a significant number of migrant workers returning to their home countries after witnessing the loss of their fellow countrymen. Furthermore, Israeli reservists being called to war have further depleted the workforce.
Construction Industry Suffers the Most
The construction industry in Israel has been especially hard-hit by the labor shortage. Prior to the conflict, approximately two-thirds of the more than 150,000 Palestinians working in Israel were employed in construction, according to the Palestinian Central Bureau of Statistics. As a result of the labor shortage, almost half of Israel’s building sites have been forced to close.
“The construction business is dependent on Palestinians. Around one-third of our workers were Palestinians before the conflict,” explains Shay Pauzner, Deputy Director-General of the Israel Builders Association.
Economic Consequences
The overall labor shortage is estimated to be costing the Israeli economy more than $800 million per month, according to the finance ministry. To address this issue, Israel is now turning to countries like India and Sri Lanka for new workers.
India: A Promising Source
Recruitment talks with India had already begun prior to the conflict, as India and Israel have grown closer under the leadership of Prime Minister Narendra Modi. India, being the most populous country in the world, struggles to generate sufficient employment for its 1.4 billion people. Although the general unemployment rate in India has been decreasing, the unemployment rate for individuals aged 15 to 24 was 17.9% in 2022, as reported by the World Bank.
Currently, there are approximately 18,000 Indians working in Israel, primarily as caregivers, according to the Indian foreign ministry. The main factors motivating Indian workers to seek employment opportunities in Israel are salary and contract stability. Samir Khosla, Chairman of Dynamic Staffing Services, an agency based in New Delhi that collaborates with Pauzner’s group, emphasizes the attractiveness of the remuneration and job security offered.
Concerns and Criticisms
The recruitment drive for Indian workers has not been without its critics. Some worry that these workers may be deployed in high-risk areas or subjected to mistreatment. Human Rights Watch has documented cases of Thai migrant farmworkers facing underpayment, excessive working hours, and other rights violations.
A group of India’s largest trade unions issued a statement in November expressing concern about the “export” of workers to Israel, deeming it both immoral and disastrous. They argue that the commodification of Indian workers is a concerning trend that must be addressed.
Despite these concerns, Israel’s recruitment of migrant workers from India continues as the country seeks to address its pressing labor shortage.