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Israel-Hamas conflict agonizes Palestinian workers, Israeli labor market

JERUSALEM | Xinhua |  Mohamed Ghraib, a Palestinian taxi driver, is waiting for his business at the Israeli side of the Qalandia checkpoint 15 km away from Jerusalem, but not much luck has come to him so far.

“Before the Israel-Hamas conflict, at this time of the day and this place, you’d see a large number of Palestinians flock to the checkpoint to cross into Jerusalem for work,” Ghraib told Xinhua, adding “but now, there are very few.”

Residing in East Jerusalem and holding an identity card, Ghraib has the freedom to travel within the Israeli territory. In contrast, most other Palestinians seeking better-paid job opportunities in Israel must obtain entry permits issued by the Israeli authorities before going through the Israeli military-equipped checkpoint.

However, the huge convenience could not help brighten Ghraib’s gloomy picture he was facing now due to the ongoing deadly conflict.

“I almost have nothing to do,” he said. “During the first week of the conflict, I kept sending foreigners to the airport every day, and then there was not much business.”

Since the conflict broke out on Oct. 7, the Israeli government has banned tens of thousands of Palestinians living in the West Bank from entering Israel for work.

About 13 percent of all employed Palestinians worked in Israel or Israeli settlements before the conflict, mainly in construction, agriculture and service sectors, according to the International Monetary Fund.

An editorial of the Israeli newspaper Haaretz noted that the concern behind the labor ban is understandable, but it “doesn’t justify the continuation of a policy that is liable to cause a severe economic crisis in the West Bank, followed by a deterioration in the security situation.”

Raja Elkhaldi, a Palestinian economist, was cited in a video published by Al Jazeera that “we had a low GDP relatively in the West Bank. If this labor stoppage continues for 12 months, we will see about 25 percent loss in GDP alone because of this effect.”

There is currently a shortfall of 28,000 workers in Israel, according to data released by its security cabinet. Israel’s construction industry is only running at 15 percent of its pre-conflict capacity due to a lack of Palestinian workers and the fact that many foreign workers have fled Israel, said the Israel Builders Association.

“It’s a very big problem for the Israeli economy,” Shay Pauzner, the association’s deputy director-general, was quoted as saying by NPR, stressing “this is one of the places where every Israeli feels the impact of the conflict: in his pocket.”

To fill the labor gap, the Israeli government is considering resuming the return of Palestinians from the West Bank, but the plan has sparked fierce controversy within the cabinet, with far-rightists arguing that “labor permits cannot be exchanged for peace.”

“Bringing workers from the Palestinian Authority into Israel now is the continuation of the concept and understanding that we did not understand anything from Oct. 7!” Far-right National Security Minister Itamar Ben-Gvir wrote in a post on social media platform X.

Nonetheless, Israeli Defense Forces and Shin Bet, the country’s security agency, back permitting workers into Israel from the West Bank with stricter than usual criteria.

Israeli Defense Minister Yoav Gallant said on Monday that it’s important to differentiate between the “terrorists” and the other “99 percent,” who should be treated “properly.” ■

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