Palestinians Lose Jobs as Israeli Firms Seek Foreign Replacements

Israel has sent back thousands of Palestinians to the besieged Gaza Strip - Reuters Photo
Israel has sent back thousands of Palestinians to the besieged Gaza Strip - Reuters Photo
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Palestinians Lose Jobs as Israeli Firms Seek Foreign Replacements

Israel has sent back thousands of Palestinians to the besieged Gaza Strip - Reuters Photo
Israel has sent back thousands of Palestinians to the besieged Gaza Strip - Reuters Photo

When Taha Amin-Ismail Khalifeh dialled into a conference call with his Israeli employer last month, the Palestinian hotel worker expected a briefing on how the Israel-Hamas war was affecting business. Instead, he and 40 others were laid off.

Khalifeh, who lives in the Israeli-occupied West Bank, had worked as a housekeeper in the hotel in East Jerusalem for more than 20 years.

About 160,000 Palestinians from the West Bank who were working in Israel and in Jewish settlements have lost or are at risk of losing their jobs because of the closure of border crossings from the West Bank into Israel and settlements, and restrictions on their access to Israel's job market, according to the UN's International Labour Organization (ILO).

Israel has also sent back thousands of Palestinians to the besieged Gaza Strip, Reuters report said.

It had previously issued 18,000 permits allowing Gazans to cross into Israel and the West Bank to take jobs in sectors like agriculture or construction that had salaries up to 10 times what a worker could earn in the blockaded enclave.

Many of the Palestinians worked as day laborers in Israel, or in Jewish settlements in the West Bank, and have been unable to travel to their jobs due to the closure of border crossings since Hamas's Oct. 7 assault on southern Israel.

Like many of them, Khalifeh had mixed feelings about working for an Israeli business, but it was his best option for a reliable pay cheque. Unemployment is running at about 46% in Gaza and 13% in the West Bank, and wages are much lower.

"There is nothing that would provide us with a living except working in Israel," Khalifeh told the Thomson Reuters Foundation by phone. "We have no other choice."

Now jobless for more than a month, he fears he may never be able to return as Israeli businesses urge the government to plug the labor gap left by the Palestinian workers from nations including India and Sri Lanka.

Israeli farms, buildings sites and hotels are among the sectors struggling with a shortage of workers since the war erupted, and some foreign migrant laborers have left, fearing for their safety.

The Israel Builders Association (ACB) has asked the government to seek to recruit at least 60,000 foreign laborers to fill the gap left by the Palestinians, Shay Pauzner, the ACB's deputy director-general, said in emailed comments.

Sri Lanka, desperate for dollars and remittances, plans to send 10,000 workers for the Israeli construction industry, part of a wider contingent of 20,000 workers also including farm laborers, a government minister told Reuters last month.

Israel's Foreign Ministry, the Population and Immigration Authority and COGAT, the government agency that oversees entry permits, did not respond to requests for comment.

- FRAGILE ECONOMY

Efforts to bring in replacements from overseas have raised fears that Palestinian workers' long-term employment prospects could be jeopardized, regardless of what happens in the current conflict.

"This is dangerous issue," Saeed Omran, head of media at the Palestine General Federation of Trade Unions, said by phone, though he added that it would take time for tens of thousands of foreigners to be hired.

"How are they going to get them so fast?" he said.

The long-term loss of Israeli jobs would deal another blow to the fragile Palestinian economy, which is dependent on foreign aid and vulnerable to Israeli travel restrictions in the West Bank.

According to the ILO, the Palestinian job losses since the start of the war equate to a daily income loss of $16 million. That raises concerns about how Palestinians will live and work in the months and years to come, especially in Gaza, said Miriam Marmur, the public advocacy director at Gisha, an Israeli nonprofit which campaigns for freedom of movement of Palestinians.

"It's hard to imagine that workers from Gaza will be given access to jobs. What's going to be the humanitarian and economic reality in the Strip? What's the situation of the Palestinian economy going to be coming out of this?" Marmur said.

For low-paid workers, the loss of income is already causing financial pain.

Construction worker Muthana Jamal Hassan, 33, who lives in the West Bank city of Jenin, had just finished a painting job in Tel Aviv when the war broke out.

He earned $140 a week and was his family's main breadwinner, but has had no income since the war began, and said he will soon be forced to get into debt to cover his family's basic needs.

Because of the border closures, he said he can not safely cross the border and fears being shot at or detained by Israeli security forces if he tries to do so.

"We used to work to eat and drink, not to buy villas and cars," he said by phone from his home. "We were living in a certain way and now it was taken away from us overnight."

- FOREIGN WORKERS

Israeli efforts to recruit foreign workers to replace Palestinians have drawn criticism from trade unionists in India, with the Construction Workers Federation of India calling the push "immoral", pointing to the death toll in Israel's bombardment and ground invasion of Hamas-ruled Gaza.

Palestinian health authorities deemed reliable by the United Nations say more than 15,000 Gazans have been confirmed killed.

Referring to the ACB's request for foreign laborers to be hired, a spokesperson for Israeli migrant rights labor group Kav LaOved said the mass recruitment of foreign workers at short notice during wartime might threaten their rights.

"They want to bring in so many people without being prepared," said spokesperson Assia Ladizhinskaya.

"We need Israel to enforce (workers') rights to check if they're being recruited normally, if the employer can communicate with them with translators, and do checks in the fields and the construction sites to see if the workers are being treated well," Ladizhinskaya added.

The group has been helping dozens of workers recover unpaid wages by contacting their employers, and has urged the Israeli government to let laid-off Palestinians withdraw funds from their pensions to help them cope with the earnings loss.

Construction worker Ahmad Mohammad Abu Sbay used to be paid 3,800 shekels ($1,023) per month, which he said was just enough to cover the family's needs, but he has not worked since the war began.

"I don't know how I'm going to feed my family," the 37-year-old father-of-four said by phone from his home in the West Bank city of Bethlehem.

"I feel the mental pressure every minute and every hour."



What Would Lifting US Sanctions on Syria Mean to the War-Torn Country?

People walk past a billboard displaying Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister, and US President Donald Trump with a slogan thanking Saudi Arabia and the United States, in Damascus on May 14, 2025. (AFP)
People walk past a billboard displaying Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister, and US President Donald Trump with a slogan thanking Saudi Arabia and the United States, in Damascus on May 14, 2025. (AFP)
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What Would Lifting US Sanctions on Syria Mean to the War-Torn Country?

People walk past a billboard displaying Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister, and US President Donald Trump with a slogan thanking Saudi Arabia and the United States, in Damascus on May 14, 2025. (AFP)
People walk past a billboard displaying Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister, and US President Donald Trump with a slogan thanking Saudi Arabia and the United States, in Damascus on May 14, 2025. (AFP)

President Donald Trump’s announcement that the US will ease sanctions on Syria could eventually facilitate the country’s recovery from years of civil war and transform the lives of everyday Syrians.

But experts say it will take time, and the process for lifting the sanctions — some of which were first introduced 47 years ago — is unclear.

“I think people view sanctions as a switch that you turn on and off,” said Karam Shaar, a Syrian economist who runs the consultancy firm Karam Shaar Advisory Limited. “Far from it.”

Still, the move could bring much-needed investment to the country, which is emerging from decades of autocratic rule by the Assad family as well as the war. It needs tens of billions of dollars to restore its battered infrastructure and pull an estimated 90% of the population out of poverty.

And Trump’s pledge has already had an effect: Syrians celebrated in streets across the country, and Arab leaders in neighboring nations that host millions of refugees who fled Syria’s war praised the announcement.

What are the US sanctions on Syria? Washington has imposed three sanctions programs on Syria. In 1979, the country was designated a “state sponsor of terrorism” because its military was involved in neighboring Lebanon's civil war and had backed armed groups there, and eventually developed strong ties with the Iran-backed Hezbollah group.

In 2003, then-President George W. Bush signed the Syria Accountability Act into law, as his administration faced off with Iran and Tehran-backed governments and groups in the Middle East. The legislation focused heavily on Syria's support of designated terror groups, its military presence in Lebanon, its alleged development of weapons of mass destruction, as well as oil smuggling and the backing of armed groups in Iraq after the US-led invasion.

In 2019, during Trump's first term, he signed the Caesar Act, sanctioning Syrian troops and others responsible for atrocities committed during the civil war.

Caesar is the code name for a Syrian photographer who took thousands of photographs of victims of torture and other abuses and smuggled them out of the country. The images, taken between 2011 and 2013, were turned over to human rights advocates, exposing the scale of the Syrian government’s brutal crackdown on political opponents and dissidents during countrywide protests.

What has been the impact of US sanctions on Syria? The sanctions — along with similar measures by other countries — have touched every part of the Syrian economy and everyday life in the country.

They have led to shortages of goods from fuel to medicine, and made it difficult for humanitarian agencies responding to receive funding and operate fully.

Companies around the world struggle to export to Syria, and Syrians struggle to import goods of any kind because nearly all financial transactions with the country are banned. That has led to a blossoming black market of smuggled goods.

Simple tasks like updating smartphones are difficult, if not impossible, and many people resort to virtual private networks, or VPNs, which mask online activity, to access the internet because many websites block users with Syrian IP addresses.

The impact was especially stark after a devastating 7.8 magnitude earthquake hit Türkiye and northern Syria in February 2023, compounding the destruction and misery that the war had already brought.

Though the US Treasury issued a six-month exemption on all financial transactions related to disaster relief, the measures had limited effect since banks and companies were nervous to take the risk, a phenomenon known as over-compliance.

Interim Syrian President Ahmed al-Sharaa — who led the insurgency that ousted President Bashar al-Assad — has argued the sanctions have outlived their purpose and are now only harming the Syrian people and ultimately preventing the country from any prospect of recovery.

Trump and Sharaa met Wednesday.

Washington eased some restrictions temporarily in January but did not lift the sanctions. Britain and the European Union have eased some of their measures.

What could lifting the sanctions mean for Syria? After Trump’s announcement, Syria's currency gained 60% on Tuesday night — a signal of how transformational the removal of sanctions could be.

Still, it will take time to see any tangible impact on Syria's economy, experts say, but removing all three sanctions regimes could bring major changes to the lives of Syrians, given how all-encompassing the measures are.

It could mean banks could return to the international financial system or car repair shops could import spare parts from abroad. If the economy improves and reconstruction projects take off, many Syrian refugees who live in crowded tented encampments relying on aid to survive could decide to return home.

“If the situation stabilized and there were reforms, we will then see Syrians returning to their country if they were given opportunities as we expect,” says Lebanese economist Mounis Younes.

The easing of sanctions also has an important symbolic weight because it would signal that Syria is no longer a pariah, said Shaar.

Mathieu Rouquette, Mercy Corps’ country director for Syria, said the move “marks a potentially transformative moment for millions of Syrians who have endured more than 13 years of economic hardship, conflict, and displacement.”

But it all depends on how Washington goes about it.

“Unless enough layers of sanctions are peeled off, you cannot expect the positive impacts on Syria to start to appear,” said Shaar. “Even if you remove some of the top ones, the impact economically would still be nonexistent.”