Following the signing of the ceasefire and hostage deal, Israel’s renovation contractors are calling on the government to allow some Palestinian workers to return to the industry — under tight security screening and alongside Israeli and foreign laborers — to help address the sector’s severe labor shortage.
A new survey by the Association of Renovation Contractors in Israel, conducted among hundreds of active contractors, found that many see the agreement as a potential solution to the ongoing manpower crisis. However, a large share still expressed concerns about hiring Palestinian workers.
When asked whether they would be willing to employ Palestinians again if an agreement with Hamas takes effect, 50.7% said no, while 49.3% said yes. Asked whether they preferred foreign workers over Palestinians, 57.2% said they would — even if a deal is signed — while 42.8% said they would prefer Palestinians.
A majority, 53.3%, also said they believe homeowners would not agree to allow Palestinian workers into their homes for renovation work.
Regarding preferred team composition, 41.6% of contractors said they favor a mix of Palestinian, foreign and Israeli workers. About 27.1% said they prefer only foreign labor, 20.5% prefer Israeli workers only, and just 10.8% said they would hire only Palestinians.
According to the association, around 52,000 Palestinians currently enter Israel illegally for work each day. The organization is urging the government to regulate the system to ensure both security and stability for the industry.
“Following the ceasefire agreement, there is an opportunity to address the labor crisis that has plagued the renovation sector for more than two years,” said Eran Siv, chairman of the Renovation Contractors Association.
He noted that since Israel banned the entry of about 15,000 Palestinian workers — who once formed the backbone of the industry — the government has approved only 750 foreign workers, a figure he called “negligible” compared to demand.
“The state’s failure to bring in alternative manpower caused double damage,” Siv said. “The renovation industry has collapsed, and the Israeli public is now paying sharply higher prices, especially after the war with Iran, which increased the number of projects but not the number of available workers.”
Siv added that the main lesson from October 7 is that Israel must never again rely solely on Palestinian labor. “The government encouraged contractors to depend completely on them, and that was a strategic mistake,” he said.
He urged the government to reintroduce Palestinian labor in a controlled and selective way: “Only after thorough Shin Bet security checks, only older workers and always in combination with Israeli and foreign staff. It’s not just safer — it’s smarter. A diverse workforce can keep working even during the next crisis.”