Palestinian labor market at risk: Israel's shift toward foreign workers amidst its struggling economy

For years, Palestinian laborers have been working in Israel, commuting from Gaza and the West Bank almost daily.

However, since the eruption of Operation Al-Aqsa Flood, hundreds of Gazan workers have been suspended, and many arrested by Israeli authorities. Today, they were released but stripped of their jobs, along with all other Palestinian laborers who began their journey back into Gaza.

The fate of Palestinian laborers has long been at the mercy of Israeli decisions, but this time, the situation appears to be even more challenging.

According to the International Labor Organization, around 180,000 Palestinian laborers work in Israel or the settlements, and 20,000 workers from Gaza have lost their jobs due to the recent hostilities. Also, there are 160,000 workers from the West Bank facing an equally grim outlook.

In the West Bank, the overwhelming majority of laborers (95%, as per the International Labor Organization) are now unemployed or on the verge of losing their jobs due to restrictions imposed on Palestinians.

This reality has harsh consequences on both Palestinians and Israel's economy.

In sectors like construction, which relies heavily on Palestinian labor with around 90,000 workers, work is almost paralyzed. The same applies to the restaurant sector, with 24,000 Palestinian workers, and agriculture, with 15,000. Israel has started proposing alternatives for Palestinian workers, but from where?

The move to exclude Palestinians from the Israeli job market and replace them will have a significant negative impact on the already fragile Palestinian economy. According to analysts, the loss of Palestinian workers' income in Israel amounts to over $300 million monthly.

As for Israel, this step will have negative consequences as well.

Palestinian Labor Minister Nasri Abu Jaish points out that Palestinian workers receive their salaries in shekels and spend them in the Israeli economic cycle. On the other hand, foreign workers will receive their salaries in dollars and transfer them abroad, putting pressure on the already strained Israeli economy, which is heavily affected by the ongoing war.

Observers consider the idea of replacing Palestinian labor with foreigners to be mere propaganda. In such conditions, few foreigners would be willing to work in Israel. Perhaps the best news came from the Thai laborers who returned from Israel to their home country with joy.