A total of 306,000 jobs have been lost, pushing the West Bank’s unemployment rate from 12.9% before the current Gaza conflict to 32%.
UN Trade and Development (UNCTAD) has released a comprehensive report detailing the profound economic destruction that has gripped the Occupied Palestinian Territory in the aftermath of the Israeli military operation in Gaza that followed the 7 October 2023 attacks by Hamas.
The report highlights the staggering scale of economic devastation and unprecedented decline in economic activity, far surpassing the impact of all previous military confrontations in 2008, 2012, 2014 and 2021. Inflationary pressures combined with soaring unemployment and collapsing incomes, have severely impoverished Palestinian households.
The military operation led to unprecedented loss of life, displacement, and widespread destruction of infrastructure. Meanwhile, the West Bank experienced a surge in violence, demolition of Palestinian assets, confiscations, and settlement expansions. The combined impact of the military operation in Gaza and its repercussions in the West Bank delivered an unparalleled shock that overwhelmed the Palestinian economy across the Occupied Territory, including East Jerusalem.
Massive job losses have worsened poverty and humanitarian crises
Labor market conditions in the West Bank have deteriorated significantly, with 96% of businesses reporting decreased activity and 42.1% reducing their workforce. A total of 306,000 jobs have been lost, pushing West Bank’s unemployment rates from 12.9% before the conflict to 32%. These job losses have resulted in an estimated daily labor income loss of $25.5 million, severely eroding the economic resilience of Palestinian households and exacerbating social hardships.
The situation in Gaza is particularly dire, with two-thirds of pre-war jobs—approximately 201,000 positions— lost by January 2024. This has further worsened the already critical economic and humanitarian crisis in the Gaza Strip.
Poverty has been widespread and growing in recent years. By 2022, one-third of the Palestinian population (1.84 million people) was food insecure (lacking consistent access to sufficient and nutritious food), or severely food insecure, and 31.1 per cent lived in poverty. Before October 2023, 80% of Gaza’s population depended on international assistance. Currently, poverty affects nearly the entire population of Gaza and is rising rapidly in the West Bank.
Call for immediate international intervention to stabilize the economy and support peace efforts
UNCTAD stresses that prolonged occupation remains the main obstacle to sustainable economic development. Persistent restrictions on investment, labor mobility and trade have systematically undermined economic potential, exacerbating poverty and instability.
The report offers a comprehensive analysis of the severe economic challenges facing the Occupied Palestinian Territory. It calls for immediate and substantial intervention by the international community to halt the economic freefall, address the humanitarian crisis, and lay the groundwork for lasting peace and development. This includes considering a comprehensive recovery plan for the Occupied Palestinian Territory, increased international aid and support, release of withheld revenues and lifting the blockade on Gaza.
