Israel: New Quota Plan to Address Labor Shortages

Israel’s government has released a plan to address labor shortages in the country, which are most notable in the construction sector. Critically, up to 3.3% of the total population in Israel (approximately 330,000 foreign workers) can now be comprised of foreign workers, which is a significant increase from the previous quota of 130,000 foreign workers (excluding 80,000 health care aides). The 3.3% will include foreign health care aides. Employment in all sectors will require a permit, with the quota set at up to 3.3% of the population in Israel according to Central Bureau of Statistics data as of January 1 each year.  This number was increased after it was found that other special quotas, which were recently implemented, were insufficient to fill labor gaps. The new quota allows foreign workers to enter Israel outside of labor provisions in bilateral agreements. Further, the government plans to establish a committee of CEOs to provide private sector input on streamlining regulations, expediting decision-making processes, allocating foreign workers across different sectors and reducing government fees to help alleviate labor deficits and promote greater efficiency in the labor market.  Moreover, a regulatory regime is expected to be introduced in order to help safeguard the rights of foreign workers to ensure they are recruited and employed under safe working conditions.