The Future of Palestinian Employment in the Israeli Labor Market in light of Political and Economic Realities

During the past decade, Israel has repeatedly increased the number of permits granted to Palestinian workers to work in its market, especially in the construction and agricultural sectors. This is in addition to the leniency and disregard for the entry of workers without permits through the gaps in the Wall, especially during the period of the COVID-19 pandemic. Recently, Israel decided to grant 500 permits to Palestinians to work in the field of information technology, in an indication that it has begun to expand its exploitation of Palestinian labor to now include skilled and educated workers. Many researchers believe that Israel may exploit Palestinian economic dependence on it to impose certain economic and political proposals, which may include sustaining its military occupation and advancing its annexation plans in the West Bank.

This Policy Brief by hbs’ partner organization the Palestine Economic Policy Research Institute (MAS) discusses the current Israeli trends in managing the issue of Palestinian workers in Israel and its relationship to annexation plans. As for the internal Palestinian level, the Policy Brief discusses the various directions of the Palestinian Authority between economic disengagement from Israel and confidence-building measures with its population, the impact on the number of workers in Israel and consequently the situation of the local economy. Overall, the Policy Brief examines Israeli policies and recent trends in managing the issue of Palestinian workers in Israel and the internal Palestinian policy towards these workers. It also looks at the impact these policies have on the number of workers in Israel and on the local Palestinian economy and discusses future implications based on current trends.