Tens of thousands of foreign workers are believed to be working in Israel without legal authorization, while enforcement agencies say they are struggling to keep up with a rapidly growing black market that includes criminal brokerage fees of up to $27,000 per worker, according to figures presented to Knesset lawmakers on Monday.
The Special Committee on Foreign Workers, chaired by MK Hava Eti Atiya, convened to address what officials described as a growing trend of foreign workers abandoning their legally contracted employers shortly after arriving in Israel, in some cases within hours of landing at Ben-Gurion Airport.
At the same time, officials warned of a parallel phenomenon: a large population of undocumented workers already in the country, many of whom remain outside tax and labor oversight systems, costing the state significant revenue while fueling an unregulated labor market in the construction, agriculture and caregiving sectors.
Under Israel’s foreign worker system, workers are generally brought to the country through approved recruitment channels and are permitted to work in specific sectors under regulated employment arrangements.
Since the Hamas massacre in southern Israel on Oct. 7, 2023, Israel has relied more heavily on foreign workers, particularly in construction and agriculture. Work permits for many Palestinian laborers were curtailed for security reasons, while the mobilization of reservists further reduced the labor pool.
“The phenomenon of worker abandonment has been increasing greatly in the last two years,” Atiya said.
According to her, some workers arrive with pre-planned arrangements to leave their official employers immediately.
“There are foreign workers who come to Israel with a pre-prepared escape plan, leaving their employers upon landing at Ben-Gurion Airport,” she said.
Officials described a system in which employers invest substantial resources to legally recruit foreign labor, only to see workers diverted to other jobs outside formal channels. Atiya said employers remain liable for fees even after workers leave.
Moshe Nakash, head of the Foreign Workers Administration at the Population and Immigration Authority, told the committee that there are currently 246,023 foreign workers in Israel, of whom 44,782 are in the country illegally.
“Eighteen percent of foreign workers in Israel are illegal,” he said, adding that unauthorized employment is spread across multiple sectors, including home care, construction and agriculture.
Enforcement officials painted a stark picture of a system being overwhelmed by intermediaries operating in a lucrative underground market.
“Criminal elements charge brokerage fees of $15,000 to $27,000 per worker,” said Shimon Zigzag, head of the Removal Branch at the Population Authority. According to Zigzag, many workers then abandon their employers in an effort to repay those debts through higher wages elsewhere.
He also warned that enforcement is being undermined by what he called the “normalization of illegal employment and the formation of informal networks that facilitate repeated violations.”
Moreover, enforcement capacity is far below what is needed.
“We are in a severe crisis, we are in survival mode,” Zigzag said, noting that just 150 inspectors are responsible for monitoring and enforcement involving tens of thousands of unauthorized workers.
He attributed the staffing shortage to poor salaries.
“No worker will come to work for a salary of 6,000 shekels [$2,060] per month. It is not possible to burden us with such a challenge,” Zigzag said.
Representatives from labor and industry groups said the situation is harming employers, workers and the broader economy.
Eyal Most of Daf Hadash, an employers’ association representing companies that recruit and manage foreign construction workers, said the phenomenon damages all parties while creating wider economic losses.
“The state loses billions as a result of illegal dealing,” Most said. He called for stronger enforcement measures, including joint efforts with the Population and Immigration Authority to locate unauthorized workers, and suggested restricting their ability to transfer money abroad.
Agricultural sector representative Gabi Bornstein proposed stricter penalties, including fines for workers who remain in Israel beyond their permitted stay.
The committee did not vote on any measures, but lawmakers indicated that additional policy proposals will be discussed.
