Indian Labourers replace Palestinians in Israeli construction sector amid Gaza war

In response, Israel barred tens of thousands of Palestinian workers, who had previously formed a significant portion of the construction workforce.

By: Express Web Desk

Updated: January 1, 2025 12:58 AM IST

3 min read

The central Bank of Israel noted that the number of Indian workers still falls short of the previous workforce figures.

The construction industry in Israel is undergoing a significant transformation as Indian workers gradually replace Palestinian labourers following the outbreak of the Gaza war. The Times of Israel reports that around 16,000 workers from India have joined Israel’s construction sector over the past year, part of an effort to address the labour shortage caused by the barring of Palestinian workers after Hamas’s attack on 7 October 2023.

Raju Nishad, 35, an Indian worker, spoke to The Times of Israel from a construction site in Beer Yaakov, central Israel. Wearing a safety belt and helmet, he described how air raid warnings briefly interrupt their work but do not deter them. “There’s nothing to be afraid of here,” he said, adding that once the sirens stop, they resume their tasks.

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The attack by Hamas led to the deaths of approximately 1,200 people and the taking of 251 hostages. In response, Israel barred tens of thousands of Palestinian workers, who had previously formed a significant portion of the construction workforce.

Samir Khosla, chairman of Dynamic Staffing Services, told The Times of Israel about his company’s role in recruiting Indian labourers for the Israeli market. “We didn’t know much about the market, and there wasn’t an incumbent workforce from India here,” he said. Khosla has brought over 3,500 workers so far and hopes to bring up to 10,000 more to meet demand.

Despite this recruitment drive, Eyal Argov of the central Bank of Israel noted that the number of Indian workers still falls short of the previous workforce figures. Before the war, 80,000 Palestinians and 26,000 foreign workers were employed in construction. Now, only about 30,000 foreign workers are available, leading to a 25% decrease in sector activity compared to pre-war levels. Argov warned that while this shortage does not immediately affect housing supply, it may cause delays in the future due to Israel’s growing population.

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Many Indian workers, like Nishad and Suresh Kumar Verma, 39, are motivated by higher earnings in Israel, where they can earn three times more than in India. Verma, who works north of Tel Aviv, said, “Making money is necessary… It’s important to continue working hard for the family’s future.”

The shift in the workforce highlights the long-term challenges facing Israel’s construction industry and the evolving dynamics of its labour market, The Times of Israel concludes.

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