The devastating Israel-Hamas conflict, which began on October 7, 2023, has significantly altered the workforce dynamics in Israel’s construction sector. Once heavily dependent on Palestinian labourers, the industry now grapples with a severe shortage, leading Israel to turn to India to bridge the gap.
The October 7 Hamas attack, marked by the militant group’s audacious breach into Israeli territory, led to one of the deadliest wars in the region’s history. In response, Israel barred tens of thousands of Palestinian workers—who previously constituted the majority of its construction workforce—from entering its territory. Before the war, approximately 80,000 Palestinians worked in Israel’s construction sector alongside 26,000 foreign labourers, forming the backbone of an industry critical to Israel’s infrastructure and housing needs.
Post-conflict, the numbers tell a stark story. The total workforce in the sector has plummeted to around 30,000 foreign workers, causing construction activity to decline by 25 per cent in the third quarter of 2024. To prevent a complete collapse of the industry, Israel initiated recruitment drives targeting Indian workers, resulting in a significant demographic shift.
As of now, approximately 16,000 Indian workers have stepped in to fill the void, with thousands more expected to join in the coming months. Drawn by wages that are often three times higher than those in India, these workers represent a new chapter in Israel’s labour dynamics.
Raju Nishad, 35, from Uttar Pradesh, is one of many who chose to make the journey to Israel despite the ongoing conflict. Wearing a safety belt, helmet, and boots, Nishad works tirelessly on a construction site in Beer Yaakov, hammering blocks that will form new homes and roads.
“There’s nothing to be afraid of here,” Nishad said, recounting his experience of air raid warnings. “Once it stops, we resume work. The earnings here are worth it; I’m saving for my family’s future.”
Suresh Kumar, 39, also from Uttar Pradesh, echoed similar sentiments from a construction site north of Tel Aviv. “Making money is necessary,” Kumar said. “It’s important to continue working hard for the family’s future.”
Indian workers have long contributed to Israel’s economy, predominantly in caregiving, the diamond trade, and IT. However, their growing presence in the construction sector underscores the adaptability of both nations to unforeseen challenges.
Recruitment agencies like Delhi-based Dynamic Staffing Services have played a pivotal role in this transition. Its chairman, Samir Khosla, highlighted the urgency of the situation, stating that his agency had to rapidly understand Israel’s unique market needs. “We’ve already brought over 3,500 workers to Israel and are planning for thousands more,” Khosla said. “Given the excellent relations between our countries, this was a natural choice.”
Despite the influx of Indian workers, industry experts warn that the current numbers remain insufficient. The shortfall in construction labourers is delaying projects, which could exacerbate housing shortages in the long term.
Eyal Argov, a researcher at the Bank of Israel, noted that while the workforce deficit has not yet caused an immediate housing crisis, delays in new housing supply could strain Israel’s rapidly growing population. “Israel’s population grows by 2 per cent annually, and this delay might lead to shortages in the future,” Argov warned.
The shift has also brought about cultural adaptations. Indian workers have learned to navigate life in Israel, from cooking familiar spicy dishes in shared accommodations to picking up basic Hebrew for workplace communication. Despite the challenges, their resilience shines through.
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