The job crisis, exacerbated by long-standing geopolitical tensions, poor infrastructure, and severe restrictions on movement, has been particularly severe in Gaza, where a population already living under a blockade has little access to basic resources and job opportunities. Gaza’s overwhelming unemployment rate can be attributed to the collapse of its industrial and manufacturing sectors, which once employed thousands of workers. These industries have been decimated by intermittent conflicts and restrictions on imports and exports, leaving many families without income sources.
In contrast, while the West Bank fares somewhat better in comparison, the economic conditions there remain precarious. The region's unemployment rate, though significantly lower than Gaza’s, reflects deep-rooted structural problems such as limited market access, reliance on Israel for employment, and a lack of industrial diversification. Many West Bank residents depend on work permits to be employed in Israel or in settlements, a system that has long faced criticism for its precariousness and unequal pay scales compared to Israeli workers.
This sharp rise in unemployment has also been accompanied by growing frustration among the youth, particularly in Gaza, where an estimated two-thirds of the population is under the age of 30. Many young people see no viable future in their homeland, leading to a wave of emigration attempts, often risking their lives on dangerous migration routes. Those who remain face the harsh reality of an education system that fails to equip them for a competitive job market, further compounding the unemployment issue.
Economic hardship is not limited to the unemployed but affects even those in low-paying, unstable jobs. The ILO report highlights that wages in both Gaza and the West Bank have stagnated, with many workers unable to meet the cost of living. The deteriorating economic situation in the territories has also led to an increase in poverty rates, creating a cycle of deprivation that is difficult to break. Families who once relied on agricultural income have been displaced by land seizures or restricted access to farmlands, further shrinking the job market.
Humanitarian organizations, including the United Nations, have expressed deep concern over the worsening situation. The World Bank has previously emphasized that the territories are becoming increasingly dependent on external aid, which is unsustainable in the long term. The lack of investment in infrastructure and human capital, coupled with the unpredictability of aid flows, creates a fragile economic environment. Additionally, the COVID-19 pandemic exacerbated existing vulnerabilities, as lockdowns and border closures disrupted both local economies and the vital income from workers employed abroad.
Efforts to address the unemployment crisis have been largely stymied by political stagnation. International actors have attempted to mediate between Palestinian authorities and Israel to ease restrictions and boost economic activity, but tangible improvements have yet to materialize. Economic cooperation agreements, including those signed under the Oslo Accords, have failed to deliver substantial economic relief to Palestinians. With the ongoing occupation, the security situation remains volatile, and businesses are reluctant to invest in an area with such high instability.
The international community has increasingly recognized that without a stable economic base, the possibility of peace in the region remains bleak. Calls for lifting the blockade on Gaza and providing freer access to global markets are becoming louder, but political realities on the ground have made such actions difficult. Meanwhile, NGOs and local organizations continue to push for job creation initiatives, particularly in sectors such as renewable energy and IT, which could provide a glimmer of hope for young people looking for work.