Over 500 thousand jobless individuals reside in the West Bank, as per union reports
Palestinian Workers Struggle Amidst Economic Crisis and Ongoing Conflict
Over the past 17 months, tens of thousands of Palestinians have been left jobless, while thousands more have tragically lost their lives trying to make a living in the occupied territories, according to the Palestinian General Federation of Trade Unions.
As International Workers' Day approaches, the union's Secretary-General, Shaher Saad, has sounded the alarm for a dramatic spike in unemployment within Palestinian society with an estimated 507,000 unemployed individuals. Saad criticizes the Israeli occupation army for unjustly arresting, torturing, and fining workers—without proper cause—simply for attempting to earn a living, particularly since October 2023.
To survive economically, many Palestinians have been forced to sell their personal belongings. An unfortunate fact Saad shares is that 89% of the workforce lacks access to social protection or pension funds, leaving them vulnerable to escalating unemployment, poverty, and hunger. He estimates the monthly financial loss faced by Palestinian workers to be around 1.35 billion shekels (approximately $372.5 million).
The statement also reports 18 Palestinian worker deaths since the start of 2025, including three who were killed by Israeli occupation forces while commuting to or from work, and another who fell from a building in Jerusalem while occupation forces stormed the workplace.
— READ: 100 Days of Israeli Offensives Cause Havoc in Palestinian Refugee Camps in the Occupied West Bank
Causes of Economic Struggles, Unemployment, and Worker Deaths in Palestinian Territories Since 2023:
- Large-scale Conflict and Destruction: The conflict sparked in late 2023, lasting through 2024, led to massive destruction in Gaza, causing a 83% contraction in economy, and 17% drop in West Bank.
- Suspension of Work Permits: Israel's suspension of about 100,000 work permits critically impacted local commerce and cut off a vital income source for workers in the West Bank.
- Banking and Fiscal Collapse: By August 2024, Gaza's banking system had collapsed, disrupting cash flows and salary payments leaving the population in poverty.
- Loss of Remittance and Tax Revenue: Israel's withholding of tax revenues (clearance revenues) and restrictions on the movement of goods and labor further strained the Palestinian economy.
- Displacement and Infrastructure Ruin: Physical damage to homes, businesses, and infrastructure forced thousands to become jobless and sent Gaza's poverty rate to near 100%.
Worker Deaths and Casualties:
- Military Operations: Worker deaths rose due to direct exposure to military operations, with many industries and workplaces being targeted or destroyed in Gaza.
- Health and Safety Failures: The breakdown of healthcare, lack of access to medical care, and unsafe working conditions contributed to increasing worker casualties.
Projected Economic and Social Outlook:
- Economic Stagnation: The Palestinian economy is estimated to grow by only 1.6% in 2025, with over $50 billion needed for Gaza's reconstruction. Recovery is expected to be gradual, with pre-conflict GDP levels unlikely to return soon.
- Long-Term Human Development Setbacks: The projected recovery timeline for human development in Palestine stretches over a century at current rates.
Proposed Solutions:
- Immediate Humanitarian Aid: International aid is vital to address immediate needs for food, shelter, and medical care.
- Restarting Economic Activity: Lifting restrictions, restoring work permits, and enabling commerce revitalizes local economies, particularly in the West Bank.
- Tax Revenue Transfers: Ensuring consistent transfer of withheld tax revenue aids the Palestinian Authority with much-needed liquidity.
- Infrastructure and Reconstruction Investment: International support for the rebuilding of essential infrastructure is essential to jumpstart economic activity and create job opportunities.
- Education and Skills Development: Investing in education and vocational training creates a skilled workforce, averting a "lost generation" due to prolonged unemployment and disrupted schooling.
- Social Protection Programs: Expanding social safety nets protects vulnerable populations from the continuing threat of poverty and hunger.
- Conflict Resolution and Peacebuilding: Addressing the root causes of conflict through political dialogue and international mediation creates a foundation for sustainable economic recovery and growth.
Summary Table: Key Figures and Trends:
| Indicator | Pre-Conflict (2023) | End-2024 | Projection (2025) ||---------------------------|---------------------|-------------|--------------------|| National Poverty Rate | 22.1% | 37.7% | >38% || Gaza Unemployment Rate | ~50% (pre-Oct 2023)| 79% | — || West Bank Unemployment | — | 29% | — || GDP Change (2023-2024) | — | Gaza: -83%
WB: -17%| 1.6% (projected, 2025) || Reconstruction Needs (Gaza)| — | >$50 billion | — |
Conclusion:
The intensification of conflict since 2023 has devastated the Palestinian economy, causing an unprecedented surge in unemployment, poverty, and a humanitarian crisis. A coordinated, long-term international effort, focused on immediate aid, economic reconstruction, and sustainable development, is essential to address these challenges [1][2][5].
- The Palestinian General Federation of Trade Unions reported that over the past 17 months, tens of thousands of Palestinians have been left jobless, and thousands more have lost their lives due to the Israeli occupation.
- The Secretary-General of the union, Shaher Saad, issued a statement warning of a dramatic spike in unemployment within Palestinian society, with an estimated 507,000 unemployed individuals.
- Saad attributed this to the Israeli occupation army unjustly arresting, torturing, and fining workers without proper cause, particularly since October 2023.
- To survive economically, many Palestinians have been forced to sell their personal belongings, with only 11% of the workforce having access to social protection or pension funds.
- The union's statement also reported 18 Palestinian worker deaths since the start of 2025, including three killed by Israeli occupation forces while commuting to or from work.
- The economic struggles and unemployment in Palestinian territories since 2023 can be attributed to large-scale conflict and destruction, suspension of work permits, banking and fiscal collapse, loss of remittance and tax revenue, displacement and infrastructure ruin, military operations, and health and safety failures.
- The projected economic and social outlook indicates economic stagnation, long-term human development setbacks, and a recovery timeline extending over a century.
- Proposed solutions include immediate humanitarian aid, restarting economic activity, tax revenue transfers, infrastructure and reconstruction investment, education and skills development, expanding social protection programs, and conflict resolution and peacebuilding.
- A summary table presents key figures and trends, showing an increase in national poverty rate, unemployment rate in Gaza and the West Bank, GDP change, and reconstruction needs for Gaza.
