Conflict between Israel and Hamas disrupts labor market for Palestinians and Israelis

The ongoing conflict between Israel and Hamas has led to the suspension of work permits for Palestinians, causing disruptions in the construction industry and impacting both Israeli employers and Palestinian workers. With the absence of Palestinian workers, the construction industry in Israel is operating at only 15% of its prewar capacity. This has resulted in financial hardships for Palestinian workers who are unable to provide for their families, while Israeli employers are facing significant economic challenges. The permit cutoff has also affected the West Bank's economy, with businesses experiencing a rise in credit purchases and a decline in income due to the lack of workers. The situation remains uncertain, with no clear timeline for the workers' return.