The War is Costing the Israeli Economy $600M a Week Due to Absences of Palestinian Workers
Israel’s Reliance on Palestinian Workers Exposed by War
The ongoing war between Israel and Hamas has laid bare the Israeli economy’s heavy reliance on Palestinian labor, with the absence of these workers costing the Israeli economy an estimated $600 million per week, equivalent to about 6% of its weekly GDP.
Prior to the outbreak of hostilities on October 7, 2023, around 100,000 Palestinians from the West Bank held permits to work in Israel, primarily in construction and agriculture. However, shortly after the initial Hamas attacks, Israel restricted entry for these Palestinian employees.
To fill the gaps, Israel has recruited workers from India and Sri Lanka, but the labor shortages have still taken a major toll. In Q4 2023, the Israeli economy contracted by 19.4% compared to the same period in 2022, the biggest drop in nearly four years. Private…