Palestinian labor crisis: Unemployment hits 49% amid economic contraction

At the 52nd Arab Labour Conference, the Palestinian Minister of Labour reported unprecedented economic and social crises facing the Palestinian people. The Minister highlighted that unemployment rates have reached 49% across Palestine, driven by ongoing aggression and movement restrictions.

In the Gaza Strip, the Minister noted catastrophic humanitarian and economic impacts since October 7, 2023, citing approximately 74,000 martyrs and over 174,000 wounded. In the West Bank, economic contraction reached approximately 8% in 2026 due to raids, demolitions, settlement expansion, and road closures that disrupt the movement of goods and citizens.

Regarding the labor market, more than 200,000 Palestinian workers are currently deprived of work within the Green Line. Additionally, hundreds of thousands of workers have lost jobs in the local market, and many workers from Gaza remain stranded in the West Bank. The Minister called for an Arab initiative to support employment and economic resilience in Palestine.