Dressed in safety gear including a helmet, safety belt, and work boots, Raju Nishad skillfully navigates scaffolding while hammering blocks for a construction project in Beer Yaakov, a central Israeli town.
Although he and his fellow Indian workers appear at ease on the expansive construction site, their presence marks a significant shift in Israel’s building industry. These workers are part of an Israeli government initiative to address the labor shortage caused by restrictions on tens of thousands of Palestinian workers barred from entering Israel following Hamas’s October 7, 2023, attack.
A Changing Workforce
Before the attack, the site’s bustling activity was characterized by workers conversing in Arabic. Now, the soundscape has shifted to include Hindi, Hebrew, and Mandarin. This shift comes in the aftermath of the deadliest war between Israel and Hamas, which also drew in Iran-backed groups like Hezbollah in Lebanon and Houthi rebels in Yemen, and led to direct confrontations with Iran.
Despite the challenges, 35-year-old Nishad remains undeterred. “There’s nothing to be afraid of here,” he said, referring to air raid warnings that sometimes interrupt work. “Once the siren stops, we just resume.”
High Wages Draw Workers
Israel’s high wages, often triple what workers earn in India, are the main attraction. “I’m saving for the future, planning to make wise investments for my family,” said Nishad, one of approximately 16,000 Indian workers who have arrived in the past year.
India, with its fast-growing economy but limited job opportunities, has long sent workers to Israel, primarily as caregivers or in industries like IT and diamond trading. However, the demand for Indian labor in construction has surged since the Gaza conflict.
Recruitment Efforts Accelerate
Samir Khosla, chairman of Delhi-based Dynamic Staffing Services, has helped send over 3,500 Indian construction workers to Israel. Following the October 7 attack, recruiters scrambled to meet the labor demand, with Khosla noting Israel’s strong ties with India as a key factor in this partnership. “We really had to understand the market’s needs,” he said, aiming to bring up to 10,000 more skilled Indian workers.
Challenges and Potential Long-term Effects
In Tel Aviv, Indian workers like Suresh Kumar Verma, 39, balance construction work with cooking meals that remind them of home. Verma highlights the economic benefits of working in Israel, saying, “Earning money is essential for securing a better future for my family.”
Despite these efforts, the number of Indian workers still falls short of the pre-war Palestinian workforce. According to Eyal Argov of the Bank of Israel, only about 30,000 foreign workers are employed in construction, down from the combined 106,000 Palestinians and foreigners before the conflict.
This workforce reduction has slowed construction activity by about 25% compared to pre-war levels. While it has not yet led to a housing shortage, Argov warns that delays in new housing projects could pose challenges for Israel’s growing population, which increases by 2% annually.
