The Reality and Future of the Labor Market in Palestine

Author: المهندس طارق جلال التميمي

Palestine, during the war on Gaza, Iran, and other countries, is suffering from a very difficult economic reality that directly affects the labor market, especially among women, youth, individuals with disabilities, and new graduates. While the number of university graduates increases annually, traditional employment opportunities decline, creating a significant gap that greatly impacts the future of an entire generation. The latest reports from the World Bank and the International Labour Organization indicate an unprecedented crisis, with unemployment rates reaching record levels, especially in the Gaza Strip, which suffers from the repercussions of war and economic restrictions. Not to mention the West Bank, burdened by siege, closures, and disruptions in value chains and financial flows due to the constraints of occupation.

This situation should not be the end of the road, but rather a motivating point for thinking outside the box. This extremely difficult phase requires the upcoming high school graduates, who are about to choose their specializations, as well as university and institute graduates taking their first steps into the labor market, to understand the labor market and study a strategy for their future. I am writing not to enumerate the problems, but to provide analysis and advice based on experience and a realistic analysis, to help Palestinian youth make successful choices.

To understand the magnitude of the problem, reviewing the statistics is essential. The ILO report issued in June 2024 presents a grim picture, showing that the unemployment rate in the Gaza Strip has jumped to nearly 80%, while it has reached 32% in the West Bank, raising the overall rate for Palestine to 52%. These figures not only reflect an economic crisis but also a clear crisis in the labor market. The World Bank report highlights the sharp contraction in Palestine's GDP, affirming that the Palestinian private sector, vulnerable in its strength and resilience against shocks, and considered the main driver of employment, is suffering from enormous pressures limiting its ability to create new job opportunities.

The main challenges highlighted by these reports are:

• Graduate unemployment: There is a surplus of graduates in some theoretical specializations that are not demanded by the market.
• Skills gap: Misalignment between the academic skills provided by universities and the practical and technical skills needed by companies.
• Shrinkage of traditional jobs: The declining capacity of the public sector and large companies to absorb more employees.
To the high school students: "Your decision today determines your future tomorrow."
• Choosing a university major is the most important investment in your future. To avoid being among the unemployed, your decision should be based on a strategic vision rather than on emotions or social conventions.
• Overcome crowded specializations: Before enrolling in any major, research the unemployment rates among graduates of that major. There are some unions and associations urging students not to study these specializations due to oversaturation with graduates, especially those requiring professional practice such as pharmacy and law.
• Choose future jobs: The world is moving towards digital transformation and artificial intelligence. Specializations such as Software Engineering, Artificial Intelligence, Data Science, Cybersecurity, and Digital Marketing have become the language of the era and the foundation of the new labor market both internally in Palestine and remotely.
• Vocational and Technical Education (TVET): The Palestinian market urgently needs skilled professionals and craftsmen in various fields such as hybrid vehicle maintenance, smart device maintenance, renewable energy, and digital manufacturing, among others. These pathways provide real job opportunities and stable income and can serve as a gateway to entrepreneurship. Their study is available in vocational training centers under the Ministry of Labor or centers affiliated with universities or associations.

New graduates: "A degree alone is not enough"

The university or college stage is over, and the journey of job searching has begun. In a labor market that is not easy, distinction here is the key to success. A degree alone is not sufficient; invest in acquiring skills that are in high demand by the market:
• Digital skills: Using remote work tools, analytical software, and the basics of digital marketing.
• Soft Skills: Problem-solving ability, critical thinking, effective communication, and teamwork.
• English language: It is no longer an additional advantage but a basic requirement to reach job opportunities in major companies and global freelance work.
• Practical experience: Do not wait for the perfect job. Engage in internships, volunteer work, and freelance projects, even if they pay very little initially. These experiences build your CV and expand your network.
• On-the-job training: The Palestinian Employment Fund, the operational arm of the Ministry of Labor, provides a distinctive model in offering paid training opportunities for graduates in various companies and institutions. http://e.pef.ps
• Job searching: Use digital platforms such as the Palestinian Employment Fund pef.ps, Jobs.ps, Foras.ps, and other Palestinian websites.
• Build a brand: Create an account on LinkedIn and build a portfolio showcasing your projects and achievements. Make your digital presence professionally attractive to employers.

Entrepreneurship and Freelancing

In light of high unemployment and few job opportunities, freelancing and entrepreneurship emerge as the best solutions available for Palestinian youth. The internet has eliminated geographical boundaries, allowing any Palestinian youth with a required skill to work with clients from all over the world from home with minimal resources and achieve a stable monthly income.

Global platforms like Khamsat, Upwork, and Fiverr offer job opportunities in services such as programming, engineering, design, translation, writing, and social media management. This model not only provides a distinctive financial income but also grants youth freedom and continuously develops their skills, and there are many Palestinian success stories worldwide.

Overcoming the labor market crisis and unemployment in Palestine cannot rely solely on solutions from governments or institutions, but must begin with a change in the mindset of the youth and graduates themselves. There must be a transition from a "job-seeking" mentality to a "value-creation" mentality and building a brand. Whether this is through acquiring distinctive certifications and skills, launching a project or entrepreneurial idea, or providing services to the world online.

The future and employment belong to those who board the train first, those who possess the ability to keep learning continuously and adapting to the rapid changes in Palestine in particular and the world in general. Through planning, training, and using digital solutions and artificial intelligence, Palestinian youth can turn challenges into opportunities.