The recent Hamas massacre has resulted in a near-total halt of Palestinian workers on Israel’s construction sites, posing a significant threat to the country’s economy. With barely any workers present on these sites, such as the one outside Beit Shemesh, the industry is eerily quiet. The freeze on work permits for Palestinian workers is the cause of this standstill, which is now a ticking time bomb for the Israeli economy and a looming disaster for the West Bank.

Aharon Galili, a construction contractor, shares his experience with how the absence of Palestinian workers has affected his projects. His usual workforce of 120 West Bank workers has not been able to come since the freeze on work permits. Galili emphasizes how important Palestinian labor is in Israel’s construction sector, where nearly 200,000 Palestinians were employed before the conflict.

The halt in Palestinian workers returning to Israel is not only impacting individual contractors like Galili but also affecting the entire Israeli economy. With a growing population, Israel needs to build around 60,000 housing units annually to meet demand. The construction sector accounts for about 10 percent of Israel’s total economic activity.

Despite calls from economists and contractors like Galili to bring back Palestinian labor, there are political obstacles that make it difficult. Right-wing extremist politicians like Finance Minister Bezalel Smotrich are opposed to allowing Palestinian workers back into Israel. Smotrich prefers recruiting workers from other countries such as India and China instead.

However, this plan is not economically or practically viable. Construction contractors like Galili believe that bringing back Palestinian labor is essential to overcome the crisis in the sector and prevent an impending economic catastrophe.

The crisis in Israel’s construction sector impacts not only its economy but also that of the West Bank, where unemployment rates have soared since Palestinians stopped going there for work. Economists warn that if this issue remains unaddressed soon, it could lead to a crisis in both countries’ housing markets and broader economies.

Therefore, finding a solution quickly is crucial for preventing further social and economic distress on both sides of Israel-Palestine border.