TEL AVIV: The Finance Ministry has warned that the government’s decision to bar the entry of most Palestinian workers from the West Bank since October 7 could result in significant economic losses, potentially reaching billions of shekels monthly.
A representative from the ministry informed the Knesset Committee on Foreign Workers that the estimated economic damage, should Palestinians continue to be unable to work in Israel, stands at approximately NIS 3 billion ($830 million) per month.
Since the surprise assault by Hamas on October 7, over 150,000 West Bank Palestinian laborers, who typically cross into Israel for employment, have faced significant restrictions.
Additionally, more than 10,000 foreign workers, predominantly from Thailand, have left the country in the wake of the attack.
Media reports suggest that Israel might require over 30,000 foreign workers to address the labor gap, exacerbated by the mobilization of hundreds of thousands of Israeli reservists for the conflict with Hamas.
Recent developments indicate that between 8,000 and 10,000 Palestinian laborers from the West Bank will be allowed to return to their jobs in Israeli West Bank settlements and businesses.
This decision follows intense pressure from factory and business owners grappling with financial challenges due to the substantial loss of their workforce.
Raul Sargo, president of the Israel Builders Association, expressed the dire situation faced by industries, stating that the construction sector is currently only 30 percent productive, with 50 percent of sites closed.
He emphasized the broader impact on Israel’s economy and the housing market, urging a resolution to the labor crisis.
Notably, earlier this month, the high-level security cabinet refrained from voting on a proposal to permit the entry of Palestinian laborers from the West Bank into Israel. Prime Minister Benjamin Netanyahu, reportedly in support of the move, refrained from bringing the issue to a vote, citing reported disagreements among security cabinet ministers and concerns about lacking a majority.
