As time passes, it appears that the workforce revolution in the Israeli construction industry—forced upon us by the Swords of Iron War—is deeper than we thought. The disengagement from Palestinian workers is leading to a surge in productivity, shorter project timelines, improved quality, and, as it currently seems, even hope for a future reduction in construction costs.
The construction sector, too, is an integral part of the broader sovereignty mosaic. Below is an article by Moshe Wistuch, originally published in Hebrew in HaKol HaYehudi (March 19, 2026). Encouraging emigration begins with reclaiming the construction industry from the hands of the enemy.
If you live in a house built from the 1970s until today, it is likely that Palestinians built its foundations, concrete work, walls, flooring, and roof. For many years, Palestinian construction workers from Judea and Samaria flooded construction sites across the country. Many felt discomfort about this phenomenon, mainly for security reasons, while others saw it as an asset and proof of possible coexistence.
On October 7, everything stopped. Alongside the breached Gaza border fence, the country’s gates were closed to Arab Palestinians who were accustomed to working in Israel. The new reality created major concerns in the construction sector, and fears of losing cheap and familiar labor were significant. However, a new channel quickly opened—one that also enables the fulfillment of the mitzvah of settling the Land of Israel.
Instead of Arab Palestinians, tens of thousands of foreign workers arrived from various countries. They surprised many in the industry and created a new reality that includes more professional and higher-quality work, adherence to deadlines, and a completely different working routine than before. In the past two and a half years, the State of Israel has undergone a process of “detoxing” from dependence on Palestinian construction workers, on the way to a real revolution.
The phenomenon did not begin today. About a year ago, HaKol HaYehudi published an interview with Ofra Haddad, VP and owner of Euro Israel Construction, who described the situation: “When we employed Arabs, you needed a thousand eyes to make sure the job was done properly. Deception was ingrained in them… If a plumber accidentally punctured a pipe, he would cover it with adhesive and hide it under tiles… With foreign workers, mainly Chinese, we discovered a completely different level of workmanship.”
The understanding that this is not a temporary patch but a fundamental “DNA change” is now penetrating mainstream economic discourse. Until recently, talk about replacing the workforce was mainly heard among contractors or outlets like HaKol HaYehudi, but today the phenomenon is being formally recognized in established economic journalism. In a recent in-depth article in TheMarker, it was described as nothing less than “the quiet revolution of the Israeli labor market.”
Experts quoted there point out that foreign workers have become a mainstream solution rather than a last resort. Reports from across the economy—from supermarkets to factories to construction sites—show a similar picture: a sharp increase in productivity and a new work ethic. As one manager stated: “They come to work only—no cigarettes or phones all day. They never miss a day.”
This new reality undermines long-standing assumptions in the construction industry. The forced and painful “detox” from Palestinian labor on the morning of Simchat Torah is now turning into a historic opportunity for efficiency. Although this is a transition period requiring adjustment, the bottom line is shorter timelines, higher quality, and potentially even lower construction prices in the future.
Discipline, Output, and Zero Deliberate Damage
Recently, media figure Hanan Amiur shared a post following a conversation with a CEO of one of Israel’s largest construction groups, describing the situation without Palestinian workers as vastly better:
“There is efficiency the industry never knew before. Meeting deadlines has become the norm, professionalism has increased, and there is no intentional sabotage… He says he is done with Palestinian workers.”
Field managers who previously worked directly with Palestinian workers and now manage foreign workers from Asia and Eastern Europe describe the change more clearly.
“At first we were stuck without painters, tilers, and workers in almost every profession,” says one site manager. “But then we discovered Indian and Sri Lankan workers, who are excellent and have a much higher work ethic.”
He explains: “If the workday starts at 7:00, Palestinians would arrive at 7:30, drink coffee until 8:00, and only then start working. Then after an hour—coffee break, prayer, another coffee, lunch for nearly an hour, more coffee, and at 15:30 they leave. Foreign workers start at 7:00, work straight until 12:00, eat for half an hour, and continue until 17:00 or even 19:00.”
He also notes that during Ramadan, work slowed significantly, and during closures or security events the disruption was severe. Foreign workers, by contrast, continue working consistently, even during times of tension.
Another manager adds that although there was initially a labor shortage, the situation has now improved and is even preferable to the past.
Why?
“Because foreign workers work more, start earlier, finish later, are more disciplined, and there is no deliberate damage on construction sites.”
A veteran manager recalls:
“When Palestinians worked, there were constant problems—especially in concrete and plumbing. Some issues were only discovered after handover or during warranty inspections. Everyone knew who was responsible, but there was nothing we could do.”
And since foreign workers replaced them?
“Not anymore. Not even once.”
The Political Level Hesitates, the Field Decides
In recent years, Israel’s labor market has been flooded with foreign workers, with significant implications. Opponents warn that Israel could become like the UAE, dependent on foreign labor with no national connection. Others fear harm to lower socioeconomic populations, or even to Israel’s Jewish identity.
All these concerns are important and have been discussed before. However, at least in construction—once dominated almost entirely by Palestinian workers—the industry overwhelmingly supports the new reality and is not willing to go back.
Before the war, about 110,000 Palestinians worked in Israel, most legally in construction, alongside tens of thousands of illegal workers. After October 7, entry from Judea and Samaria stopped completely. Two months later, the Defense Ministry sought to restore the previous arrangement, but ministers such as Bezalel Smotrich and Nir Barkat opposed it. Prime Minister Netanyahu ultimately sided with the opponents.
According to data from the Ministry of Economy, Palestinian work permits dropped to about 8,000.
Construction sites initially suffered and many projects stalled. The solution was bringing foreign workers to fill the gap.
Since then, according to Population and Immigration Authority data, Israel now hosts about 230,000 foreign workers, around 75,000 of them in construction, mainly from China, India, Thailand, Sri Lanka, and Moldova.
“Cheap Quickly Becomes Expensive”
Foreign labor did not eliminate concerns, but attitudes have shifted. “We have been employing foreign workers for over 20 years,” says Yedidia Perl,
deputy CEO of Avnei Derech Construction Group.
He explains that the process accelerated during the war, even among companies that did not previously rely on foreign labor.
“Large companies like ours used both Palestinians and foreign workers. Smaller contractors relied only on Palestinians—that has changed. Today the situation is better. Moldovans, for example, work 10–12 hours a day, are more disciplined, and more professional.”
Are there still difficulties?
“There are still trades like electrical and plumbing where foreign workers have not fully entered, so Israeli Arab workers fill the gap. I hope foreign workers will eventually cover those areas too,” says one manager.
There are also language and communication challenges, but these are being overcome quickly.
What about higher costs?
“There are differences in cost, but they are not significant. Quality and productivity more than compensate, making foreign labor worthwhile.”
Perl agrees: “With Palestinian workers, you only got cheap labor. No quality, no deadlines. In the end, cheap becomes expensive. Now you finish projects faster, get paid earlier, and earn more.”
“Hebrew Labor? Still a Long Way to Go”
When discussing replacing Palestinian labor, the idea of “Hebrew labor” arises—but industry leaders see it as unrealistic for now.
“The mentality is different,” says Perl. “Jewish workers are rarely willing to do this kind of hard physical labor.”
Contractor Yosef Ben Shetrit adds:
“For small projects, you can use Israeli workers. But for large projects requiring dozens or hundreds of workers, it’s impossible—there aren’t enough Israelis willing to work in construction.”
Managers acknowledge that certain trades like electricity and plumbing might still be suitable for Israeli workers, but in practice, Israeli Arab workers currently fill the gap.
The state encourages Israeli labor through incentives, but the industry says this is not enough.
A Quiet Revolution in Quality from the Back Door
For now, whether or not Israeli labor enters the field, the reality is clear: the industry has moved on from Palestinian workers.
“Today we can say we are weaned from it,” says Haddad. “Even if Palestinians were allowed back, it won’t happen.”
Managers agree the industry has adapted and does not expect a return to the previous situation.
But this may be only the beginning of a deeper transformation. The forced efficiency could accelerate automation, mechanization, and advanced construction technologies. These developments could reduce physical labor demands and potentially open the door for more Israeli workers in the future.
Combining all elements—skilled workers, faster timelines, zero sabotage, and future technology—may eventually lead to broader changes in the housing market and possibly even lower construction costs in Israel.