Some 150 people were demonstrating in the northern city of Kiryat Shmona on Wednesday morning against defense cuts which have taken a toll on local weapons manufacturing factories.
The city was experiencing traffic jams as demonstrating workers blocked Route 90 at the entrance to the city.
The demonstration comes after the Defense Ministry canceled orders for tank and armored personnel carrier parts due to budget cuts, Israel Radio reported.
Some 100 employees of six weapons manufacturing factories in the city have been fired in recent months, with several dozen more expected in the future, according to Israel Radio.
Police were on the scene monitoring the situation.