Israel imports record foreign workforce to replace Palestinians, but housing crisis looms

Israel has reached a record 250,000 foreign workers, set to rise to 330,000, as it replaces Palestinian labor post-October 7, 2023. The rapid influx creates a housing crisis, with employers obligated to provide accommodation but widespread violations reported, including overcrowding and unsafe conditions. Government solutions remain largely on paper.

Israel has reached a record 250,000 legal and illegal foreign workers, the highest number ever, according to the Population and Immigration Authority, with plans to increase to 330,000. This surge follows the October 7, 2023 decision to close border crossings with the Palestinian Authority and bar Palestinian workers. Before the war, 150,000 Palestinian workers entered Israel regularly, 92,000 legally, mostly in construction; now only 20,000 remain. The government established a ceiling of 3.3% of the population for foreign workers in May 2024. The largest groups are from Thailand (26.5%), India (21.7%), China (11.8%), Sri Lanka (11.2%), and the Philippines (9.5%). Employers are legally required to provide housing meeting specific standards, but inspections reveal widespread violations. Shimon Zigzag, senior head of the Population and Immigration Authority Investigation and Intelligence Department, reports extreme cases: workers housed in cold storage rooms, on waste sites, without electricity or gas. A foreign worker from India describes a bathroom without a door, dust entering the cooking area, and four people in a poorly ventilated corridor room. Another worker reports 12-15 people sharing a two-bathroom apartment with frequent room changes. Zigzag notes enforcement has not scaled with the unprecedented arrival rate, as the Foreign Workers Administration has not increased staffing.

Israel imports record foreign workforce to replace Palestinians, but housing crisis looms