The International Labour Organization (ILO) has issued a stark warning about the economic impact of the Israel-Hamas war on Gaza, stating that the territory has lost a staggering 61 percent of its jobs since the conflict began. This translates to approximately 182,000 jobs, according to the UN agency. The ILO also noted that the economic fallout will have long-lasting effects for “many years to come.”
Ruba Jaradat, the ILO’s Regional Director for Arab States, expressed deep concern over the current crisis, stating that the ongoing hostilities have not only resulted in a humanitarian catastrophe but also a severe social and economic crisis. Businesses and job sectors have been severely damaged, and the repercussions of this will be felt long after the conflict ends.
The occupied West Bank has also been affected, with an estimated 24 percent loss of employment, equivalent to 208,000 jobs, due to spillover effects from the war. The combined job losses in Gaza and the West Bank result in daily income losses of around $16 million, further exacerbating the economic distress in the region.
Jaradat emphasized the urgent need for unimpeded access to humanitarian aid for Gaza residents. The ILO is working tirelessly with various stakeholders, including governments, workers, employers, and other UN agencies, to provide immediate assistance to impacted workers and businesses. Additionally, the agency aims to gather essential labor market information, aid in job recovery efforts, and implement social protection initiatives to the fullest extent of its mandate.
Gaza, which has been under an Israeli blockade since 2005, already faced severe economic deprivation prior to the current conflict. With an unemployment rate of 46.4 percent in the second quarter of 2023, one of the highest in the world, over 80 percent of the population lives below the poverty line, according to the UN. The situation has worsened with shortages of food, water, and medical supplies since the tightening of the blockade and Israel’s bombardment of the enclave.
Since Hamas’s attacks on Israeli communities on October 7, which resulted in the deaths of at least 1,405 people, mostly civilians, Israel’s bombardment has claimed the lives of over 10,022 Palestinians, according to officials in the Hamas-governed enclave.
The ILO’s assessment underscores the urgent need for international attention and support to address the dire economic situation in Gaza and the West Bank. Immediate humanitarian aid, job recovery initiatives, and social protection measures are crucial to mitigate the long-term economic fallout and provide relief to the affected population.
