Prices may change due to hiring of construction workers from India and Sri Lanka

Starting January 1, 2027, Israel's Population and Immigration Authority will prohibit private companies from independently hiring construction workers from India and Sri Lanka, shifting recruitment to intergovernmental agreements due to concerns over human trafficking. The construction sector criticized the measures, warning of labor shortages and rising housing prices. The Authority counters that private hiring will continue within quotas, citing statistics: since the war began, 76,000 foreign specialists have arrived, bringing the total to 90,000.

Starting January 1, 2027, Israel's Population and Immigration Authority will impose a complete ban on private companies independently hiring construction workers from India and Sri Lanka. Recruitment of labor from these countries will only be possible through official intergovernmental agreements. The authorities cite concerns over human trafficking risks as the reason for the measure. Private recruitment will continue for workers from Uzbekistan, Azerbaijan, Georgia, Vietnam, the Philippines, Romania, Thailand, Hungary, and Turkey. The construction sector has sharply criticized the changes. An association representing about 160 companies claims the bilateral format will not provide the market with the necessary volume of qualified personnel. Industry representatives say private hiring allows for selection in the countries of origin and reduces delivery times from 4–6 months to 2–4. Businesses warn that increased procedural complexity will raise personnel costs and wages, impacting housing prices. The Authority counters that private hiring is not being fully phased out and will continue within quotas. According to Authority statistics, about 76,000 new foreign specialists have arrived since the war began, and the total number of foreign workers on construction sites has reached approximately 90,000, nearly triple pre-war levels.