By Amit Acco, Partner |
Amidst a critical shortage of labor in Israel’s construction industry, expectations of addressing the shortfall with foreign workers have fallen short, with a mere 1,000 arrivals out of the anticipated 45,000. The government’s initial approval for 65,000 foreign workers has not translated into a significant influx, prompting concerns and criticisms from industry stakeholders.
In a recent ceremony themed “Building Israel,” Ministers of Construction and Housing and the Interior, participated, despite the stark reality of minimal arrivals. The ceremony, held at the National Labor Federation in Modi’in, underscored the government’s commitment to addressing the labor deficit.
The data from the Population and Immigration Authority reveal a meager count of 1,004 new arrivals, predominantly from India and Moldova, with negligible contributions from other nations. Notably, bilateral agreements with India, Sri Lanka, and Uzbekistan are yet to yield any arrivals, casting doubts on the efficacy of such agreements in alleviating the labor crisis.
Industry insiders have long cautioned against the sluggish pace of arrivals through bilateral agreements, advocating for the private track, albeit with modest outcomes thus far. Despite government directives to accommodate over 60,000 foreign workers, bureaucratic hurdles and the learning curve for manpower companies have impeded progress.
The Israel Builders Association, tasked with vetting prospective workers, reports a backlog of nearly 18,000 approved candidates from India and Sri Lanka awaiting deployment. However, bureaucratic bottlenecks and the adjustment period for manpower companies have hindered their mobilization.
Applications from approximately 300 companies seeking permits for foreign worker recruitment underscore the industry’s eagerness to address the labor deficit. However, the slow approval rate by the Population and Immigration Authority, with only 29 applications sanctioned thus far, underscores bureaucratic inertia hindering swift action.
Despite the challenges, The Minister of Interior remains optimistic, emphasizing support for private sector initiatives aimed at bolstering the construction industry. The minister’s stance underscores the recognition of the pivotal role played by foreign labor in sustaining the sector’s growth and its broader implications for the Israeli economy.
