The Gaza Strip has experienced a devastating blow to its economy, as new data from the International Labour Organization (ILO) and the Palestinian Central Bureau of Statistics (PCBS) reveals that nearly 66 percent of jobs have been lost since the start of the war between Israel and Hamas on October 7. The impact of this conflict has also spilled over into the occupied West Bank, where one-third of employment, equivalent to 276,000 jobs, has been reduced.
The dire conditions in the blockaded territory of Gaza have been further exacerbated by the loss of jobs, rendering it essentially uninhabitable, according to the report. Even before the current conflict, Palestinians in Gaza faced persistently high rates of poverty and vulnerability, with one of the highest unemployment rates in the world. Now, the unemployment rate in Gaza exceeds three-quarters of the labor force, while around a third of the West Bank’s labor force is unemployed, reaching the highest level of unemployment in decades.
The consequences of this “humanitarian catastrophe of epic proportions” will have long-lasting impacts on the population, leaving them dependent on international aid for their basic needs. Peter Rademaker, the ILO’s deputy regional director for Arab states, warns that Palestinians in Gaza will face poverty for many months and years to come due to Israel’s war on the enclave. With no income or wages, the people of Palestine will increasingly rely on international assistance, creating a state of dependency and competition for limited global aid resources.
Unfortunately, the authorities in Palestine lack public financing to provide social assistance, making international aid crucial. However, the chances of Palestine receiving the necessary aid are uncertain due to the multitude of crises occurring worldwide. The report highlights that the ongoing conflict has caused significant damage to the Gaza Strip, with nearly 40,000 buildings, or 18 percent of all pre-conflict structures, being damaged or destroyed.
The labor market in both the occupied West Bank and Gaza was already under significant strain before the war, and now the situation has escalated to unimaginable levels. The impact on the job market will result in lifelong hardship for the population, deepening their vulnerability and exacerbating existing poverty rates.
It is essential for the international community to recognize the urgency of the situation and provide the necessary support to alleviate the suffering of the Palestinian people. The road to recovery for Gaza and the West Bank will be long and challenging, requiring sustained assistance and investment in rebuilding infrastructure and creating sustainable employment opportunities.
As the world faces multiple crises, the plight of Palestine should not be overlooked. The international community must prioritize and mobilize resources to address this urgent humanitarian crisis and work towards a just and lasting resolution to bring peace and stability to the region.
