135,700 Israelis were employed in construction during the first quarter of 2006, 15.5% more than the 117,400 employed in the industry during the early 2000s. The construction industry employed 191,000 people altogether during the first quarter.
The Ministry of Housing and Construction believes that the increase in the number of Israeli construction workers is due to the prolonged closure of the Palestinian Authority, and a 6% rise in salaries in the industry since the beginning of the decade. The average salary of a foreign worker in construction is still 17% less than an Israeli worker, despite the rise in the latter’s wages, however.
These measures are part of government policies to reduce the number of foreign workers in Israel, and to give preference to Israeli workers. The government has also increased enforcement measures against foreign workers, including raids on construction sites, the detention of foreign workers, and fines against contractors using illegal foreign workers. Fees and taxes have also been levied against both contractors and workers.
Ministry of Housing figures indicate that the number of foreign construction workers is now 38,800, compared with 74,000 in 2001. The number of Palestinian construction workers has fallen to 16,300 from 64,700 in 1999.
The average salary of an Israeli construction worker is NIS 6,015, 1% less than the average salary in 2005, and the average salary of a foreign worker is NIS 5,280.
Published by Globes [online], Israel business news - www.globes.co.il - on June 4, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006