"The industry is collapsing": The storm shaking Israel's construction and renovation sector
The Central Command commander halted the entry of Palestinian workers into Judea and Samaria, but the political echelon reversed the decision within two days. With an estimated tens of thousands of illegal residents entering through fence breaches, the industry is furious: "The government is abandoning security."
Since October 7, the employment of Palestinian laborers within Israeli territory has been halted. This policy remains in effect, forcing some construction sites to import foreign workers at higher costs, which has led to project delays. In the renovation sector, recent policy shifts have sparked anger among the Association of Renovation Contractors.
"The government is abandoning public security by allowing the employment of Palestinian workers in Judea and Samaria while turning a blind eye to 30,000 illegal residents inside Israel," says Eran Siv, chairman of the Association of Renovation Contractors, following the Minister of Defense's decision to restore employment in Judea and Samaria after a recent wave of terror attacks.
Siv accuses the political echelon of "criminal negligence" in managing the labor force for the construction and renovation industry. "The government is conducting a policy of zigzags and lawlessness while the renovation industry is collapsing," he added.
The commander of the Central Command had previously decided on a sweeping halt to worker entry following the security escalation. According to Siv, this "security zigzag" demonstrates a complete lack of strategy. He notes that while the government vacillates, the separation fence remains breached, with an estimated 30,000 illegal residents entering the country daily without security checks, working in the industry without any supervision.
A special report by the State Comptroller, published in April 2026, stated that there is currently no government body that centralizes decision-making regarding non-Israeli workers while balancing security and economic implications. The Comptroller found that despite the official entry ban, the number of illegal residents has not decreased. The report emphasized that the split authority between the Security Cabinet (for work in Israel) and the Central Command commander (for work in Judea and Samaria) creates inconsistent and unequal policies.
"The renovation industry is facing a massive labor shortage. There is no one to carry out restoration work following recent missile attacks; contractors are closing their businesses, leaving the field to unlicensed operators who employ illegal residents and endanger the public. We demand that the government end this lawlessness: seal the fence breaches, eliminate the phenomenon of illegal residents, and restore security. Only then should a national, controlled, and cautious plan for the entry of vetted workers be examined under strict enforcement across the country," Siv concluded.
