Gov't approves foreign workers reform as Israel-Hamas war causes worker shortage

Israel's government approved a structural reform in the foreign workers branch on Wednesday, the Prime Minister's Office and Labor Ministry announced. The reform aims to preserve operational continuity and reduce the cost of living in Israel.

The decision follows the impacts of the Israel-Hamas war on Israel's economy, which includes huge shortages of workers, especially in the construction, agriculture, and elder care sectors.

The reform includes increasing the number of foreign workers Israel will allow to enter the country up to a maximum of 3.3% relative to Israel's population of over 300,000 workers.

The reform aims to increase competition in the construction sector

The reform also aims to increase competition between foreign personnel agencies in the construction sector by adding agencies and, if this does not work, by considering allowing direct employment.

Also included in the reform is an increase in budgets and positions for enforcement units in the Justice, Labor, and Population and Immigration Authority ministries; and a possible reduction in fees that employers must pay to employ foreign workers.

 A committee will also be formed that will determine the minimum wage in the various sectors where foreign workers will be employed, as well as the system of bringing workers into the sector.

The plan will grow quotas of foreign workers while cutting bureaucratic costs and is "important for businesses, our economy, and also our security," said Prime Minister Benjamin Netanyahu of the decision.