Rising Unemployment Rates in Gaza and the West Bank During 2025

SadaNews Economy - The Central Bureau of Statistics reported that unemployment rates in the Gaza Strip rose to about 68% during the war, with the labor force participation rate dropping to around 25% compared to 40% before the war, while it increased in the West Bank to about 28% in the fourth quarter of 2025 compared to approximately 13% in the third quarter of 2023.

The "Statistics" statement issued on the occasion of International Workers' Day, which falls tomorrow, Friday, noted that the number of workers in the West Bank decreased from 868,000 workers in the third quarter of 2023 to about 736,000 workers in the fourth quarter of 2025, a decrease of 15%, due to the decline in job opportunities in several economic activities, most notably construction and building, followed by mining and manufacturing, then transport, storage, and communications.

In the Gaza Strip, it was clarified that the number of workers in the third quarter of 2023 was about 292,000 workers with a participation rate of 55%, which significantly dropped during the war to about 32% in the fourth quarter of 2024, due to the loss of job opportunities and the rise in the number of unemployed.

It added that the results of the labor force survey in the Gaza Strip during the war showed that about 74% of those who were employed became unemployed or out of the labor force, while the youth demographic (15-29 years) was particularly affected, with about 74% of young people being out of education, training, and the labor market, with a breakdown of 75% for males and 73% for females.

"Statistics" showed that the impact of the crisis was not limited to the Gaza Strip but also reflected in the West Bank, where the number of unemployed rose to about 280,000 in the fourth quarter of 2025 compared to approximately 129,000 in the third quarter of 2023.

Unemployment rates in the West Bank increased to about 28% in the fourth quarter of 2025 compared to 13% in the third quarter of 2023.

Regarding work within the occupied territories of 1948 and settlements, the results indicated that the number of workers from the West Bank decreased from about 172,000 workers in the third quarter of 2023 to 25,000 workers in the fourth quarter of the same year, before gradually increasing to reach 51,000 workers in the fourth quarter of 2025, with the largest drop occurring in the number of workers with work permits, declining from about 127,000 to 14,000, while the number of workers without permits decreased from 37,000 to 21,000, and the number of workers holding Israeli, Jerusalem, or foreign identity cards rose from about 8,000 to approximately 17,000 workers.

According to the statement, the percentage of informal employment reached about 60% in the West Bank in the fourth quarter of 2025 compared to 62% in the third quarter of 2023, while the percentage of workers in the informal sector was about 42% versus 46% during the same period.

Regarding wages, the real daily wage rate for wage earners in the private sector in the West Bank was around 120 shekels in the fourth quarter of 2025, compared to 126 shekels in the third quarter of 2023.

The transportation, storage, and communications sector recorded the highest daily wage rates at 169 shekels, followed by the construction and building sector at 141 shekels, while the agriculture sector recorded the lowest rate at 71 shekels.

"Statistics" indicated that 14.6% of wage earners in the private sector in the West Bank receive a monthly wage below the minimum wage (1,880 shekels), compared to 12% in the third quarter of 2023.

Data also showed that only about 40% of wage earners in the private sector receive their entitlements for vacations and end-of-service or retirement benefits, which is almost the same percentage as in the third quarter of 2023, while 47% of working women still receive paid maternity leave in the fourth quarter of 2025, compared to 51% in the previous period.