Unemployment Crisis in Gaza

ZURICH (Reuters) – Unemployment in Gaza has soared to nearly 80% since the Israel-Hamas war erupted, with the devastated enclave's economy in almost total collapse, the International Labour Organization (ILO) said on Thursday.

Economic output has shrunk by 85% since the conflict with Israel began a year ago, plunging nearly the entire 2.3 million population into poverty, according to the United Nations agency.

The conflict has caused "unprecedented and wide-ranging devastation on the labour market and the wider economy across the Occupied Palestinian Territory," the ILO stated, referring to Gaza and the West Bank.

In the West Bank, the unemployment rate averaged 34.9% between October 2023 and the end of September 2024, while its economy has contracted by 21.7% compared to the previous 12 months, as reported by the ILO.

Before the crisis, the unemployment rate in Gaza was 45.3% and 14% in the West Bank, according to the Geneva-based organization.

Gazans have either completely lost their jobs or have taken informal and irregular work, which is "primarily centred on the provision of essential goods and services," the ILO noted.

Israel launched its offensive after Hamas-led gunmen attacked on October 7, killing approximately 1,200 people and taking around 250 hostage, according to Israeli statistics.

In response, Israel's campaign has resulted in the deaths of over 42,000 people, according to health authorities in Gaza.

Two-thirds of Gaza's pre-war structures—over 163,000 buildings—have been damaged or flattened, according to U.N. satellite data.

Israel asserts that its operations target Hamas militants hiding in tunnels and among Gaza's civilian population.

The crisis has extended into the West Bank, where Israeli restrictions on the movement of personnel and goods, as well as broader trade restrictions and supply-chain disruptions, have severely affected the economy, the ILO stated.

Israel maintains that its actions in the West Bank are necessary to counter Iranian-backed militant groups and to protect Israeli civilians.

Ruba Jaradat, ILO regional director for Arab states, remarked, "The impact of the war in the Gaza Strip has taken a toll far beyond loss of life, desperate humanitarian conditions, and physical destruction. It has fundamentally altered the socio-economic landscape of Gaza, while also severely impacting the West Bank’s economy and labour market. The impact will be felt for generations to come."