Israel’s construction industry is facing a fresh labor crunch after the government abruptly froze a key track for bringing foreign workers into the country, despite persistent manpower shortages and delays in housing projects.
The Population and Immigration Authority informed manpower companies and contractors that the 40,000-worker quota approved for direct recruitment outside government-to-government agreements had been fully exhausted.
Contractors warn of fresh delays as Israel halts private recruitment of foreign construction workers
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As a result, no new applications may be submitted under the temporary fast-track program, and even requests already filed but still under review have been frozen until further notice.
An email sent by the authority to relevant companies, obtained by ynet, said the quota under the emergency framework created following the outbreak of the war had been “fully exhausted.”
“Given the exhaustion of the quota, no new applications should be submitted for bringing foreign workers under this framework until further notice,” the authority wrote.
It added that previously submitted applications that had not yet been approved, including those already under examination or processing, would not be authorized for now.
The decision surprised contractors and manpower firms, many of which had already invested time and money in recruiting, screening and training workers abroad.
Industry officials say the freeze could further slow construction and create uncertainty for developers already struggling with labor shortages.
The private recruitment route was introduced after the war sharply reduced the number of available workers in the construction sector. The government initially expanded bilateral, state-run recruitment programs but struggled to bring in workers quickly enough.
A parallel system was then created allowing contractors and manpower companies to recruit workers directly from abroad.
Industry representatives strongly favor that model, arguing that it allows them to test and select workers themselves and has helped stabilize the sector.
The Israel Builders Association sharply criticized the freeze.
“The government is harming a successful model for bringing foreign workers,” the association said.
It argued that after shortcomings in the government-to-government, or G2G, system, the private route proved far more effective.
According to the association, more than 80,000 foreign construction workers are currently in Israel, over half of whom arrived after the recruitment model was changed.
The association said the influx had helped reduce the average construction period from 38.6 months to 37 months, with further improvement expected.
“Contractors report that they are very satisfied with these workers, and stability has finally been created in this area of the industry, even though a shortage still remains,” the association said.
It called for an additional quota of foreign workers under the same…
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