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Economy Minister: 'No more Palestinian workers, we will dismantle the PA'

Summary by Arutz Sheva
Economy Minister Nir Barkat said the government will work to increase the quota for foreign workers and expressed firm opposition to returning to the use of Palestinian workers.

2 Articles

Nir Barkat Declares End to Palestinian Labor in Israel, Vows to Dismantle PA

Economy and Industry Minister Nir Barkat says Israel will not return to relying on Palestinian labor, pledging instead to dramatically expand the country’s foreign workforce while declaring that the Palestinian Authority must ultimately be dismantled. Speaking at a conference in Yerushalayim, Barkat recounted hosting soldiers from the IDF’s Force 100 prison unit at his home, where they described the emotional and personal toll of months spent on the battlefield. “Some lost their homes, others left the fighting with very difficult experiences. These are people who carried the security of the State of Israel on their shoulders,” he said. Barkat also took aim at media reports scrutinizing Israeli soldiers, arguing that those serving in combat have been unfairly singled out. He pointed to a legal defense fund established under the leadership of Prof. Moshe Cohen-Eliya to represent IDF soldiers facing legal action overseas because of their military service. “The fund will stand by every soldier who finds himself in legal proceedings as a result of his military service. This is our duty toward those who defend the State of Israel,” he said. Turning to Israel’s labor force, Barkat reaffirmed that he opposes allowing Palestinian workers back into the country. Instead, he said the government has focused on bringing in workers from nations that maintain peaceful relations with Israel. According to the minister, approximately 52,000 foreign workers are now employed across the country, replacing about 24,000 Palestinian laborers who had been working in Israel before the war. He added that the government is preparing to authorize the arrival of thousands more foreign workers to address ongoing labor shortages. Barkat also highlighted what he described as the strength of Israel’s economy despite the prolonged conflict. He said Israeli exports totaled roughly $169 billion in 2025 and projected economic growth of about five percent. He added that Israel is expanding its commercial relationships throughout Asia, including negotiations on a free trade agreement with India, while advancing regulatory reforms aimed at boosting competition, increasing imports, and lowering the cost of living. The minister argued that Israel’s military successes have enhanced the country’s global reputation, leading more governments to seek partnerships with Israel in areas such as security, innovation, high-tech, agriculture, and food technology. “Never has the State of Israel been stronger and more in demand,” Barkat said. “When I meet economy ministers around the world, they tell me they cannot understand the Israeli phenomenon-while in other countries citizens flee during wartime, Israelis have asked to return home even under fire.” {Matzav.com}

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Arutz Sheva broke the news in Israel on Friday, July 31, 2026.
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