Two years after the War of Independence, in 1950, Lod had a population of 9,333 Jews and 1,040 Arabs. Despite this, there were no factories in the city.  Nearly two-thirds of Lod's population needed welfare assistance during those two years and were unable to pay municipal taxes. This burden weighed heavily on the municipal budget, which was unable to accelerate the city's recovery. For this reason, the development of Lod was delayed until the establishment of industrial plants. Only with the creation of the industrial plants was it possible to eradicate the unemployment that characterized the early 1950s.  The first immigrants who arrived in Lod were mainly employed in jobs initiated by the Military Government. With the establishment of the municipal committee, more jobs were added in clearing rubble, installing water pipes, renovating houses, and paving roads and sidewalks.

From: Vakar, Ora, 1977, Lod - Historical Geography, published by Goma and the Lod Municipality - Chrikover.

The residents of Lod were also employed in the rehabilitating the airport and the train station. The British dismantled many tracks and carriages from the area, and the tracks had to be repaired before Israeli trains could begin to run. The extensive work required to bring the railway station back into operation provided the residents who worked there with permanent jobs, and it was the first permanent workplace in Lod. The first fully employed residents also worked in agriculture. Immediately after Lod’s liberation, agricultural companies such as Hakal (HK”L) and Tnuva began to develop agricultural land in the vicinity of Lod, where many workers were employed during the busy seasons. Hakal restored part of the Hadar orchards near Lod, and by 1949, 200 residents were engaged in agriculture.

Employment issues troubled the city's leaders from the very beginning. Members of the first City Council (from all factions) spared no effort to bring the residents' plight to the attention of the Minister of Labor and the Minister of Welfare. The first Mayor, Pesach Lev, spared no effort to attract and encourage investors to establish factories in Lod, but these factories could not be built before the city was connected to the electricity grid.

From: Vakar, Ora, 1977, Lod - Historical Geography, published by Goma and the Lod Municipality - Cherikover.

The efforts and endeavors of the Municipality and the Histadrut bore fruit, and by 1955, several large factories had been established in Lod, which continue to provide a source of employment for hundreds and thousands of workers to this day. The first factory, which employed 50 workers from the outset, was the cigarette factory of the “HaHoma” company. This factory produced the “Knesset 6” cigarette, which was renowned throughout the country. Another factory, “Telrad,” a national factory for switchboards and telephones, employed over 60 workers. In addition, small factories were established, employing up to 10 workers, with minimal capital from some of the city's residents.

The desire to increase sources of income sometimes led not only to the establishment of short-lived factories, but also to future plans such as a tourist center.

From: Vakar, Ora, 1977, Lod - Historical Geography, published by Goma and the Municipality of Lod - Chrikover.