Labour shortage in Israel's construction industry impacts economy

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Economy News

Israel,Construction Industry,Labour Shortage

The labour shortage in Israel's construction industry, caused by the absence of Palestinian and foreign workers, has significantly impacted the country's economy. The industry, valued at US$71 billion, is operating at just 15% of its pre-war capacity. To address the shortage, the Israel Builders Association plans to recruit foreign workers from India and Sri Lanka.

Around 82,000 Palestinians worked in the country’s construction industry prior to the assault, accounting for a third of the sector’s workforce. Left without these workers – as well as another 2,000 from China and Eastern Europe who returned home after Oct 7 – construction sites across Israel have gone quiet, significantly denting the country’s economy. The labour shortage has been exacerbated by the mobilisation of hundreds of thousands of Israeli reservists for the war against Hamas.

The Israel Builders Association (IBA) estimates that the industry, one of the country’s biggest economic sectors with a market size valued at US$71 billion (S$94 billion) in 2022, has been operating at just 15 per cent of its pre-war capacity. This has brought urgency to recruit fresh foreign workers, and representatives from IBA will be in India and Sri Lanka later this week to screen applicants for various roles such as plastering, ceramic tiling, building formwork and iron bendin

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Labour shortage in Israel's construction industryThe labour shortage in Israel's construction industry, caused by the absence of Palestinian workers and the mobilisation of Israeli reservists, has significantly impacted the country's economy. The Israel Builders Association (IBA) is urgently recruiting foreign workers to fill the gap.
Source: The Straits Times - 🏆 8. / 63 Read more »