THE Palestinian Central Bureau of Statistics (PCBS) said unemployment in the Gaza Strip surged to around 68% during the ongoing Israeli war, accompanied by a sharp drop in labour force participation to about 25%, compared to 40% before the war.
Palestinian news agency (WAFA) reported the bureau, in a statement issued ahead of International Workers’ Day, observed on May 1, said unemployment in the West Bank also rose significantly, reaching approximately 28% in the fourth quarter of 2025, up from about 13% in the third quarter of 2023.
The PCBS reported that the number of employed persons in the West Bank declined from 868,000 in Q3 2023 to around 736,000 in Q4 2025—a 15% decrease—mainly due to reduced job opportunities in key sectors such as construction, mining, manufacturing, and transport.
In Gaza, the number of employed workers dropped sharply from about 292,000 in Q3 2023, when labour force participation stood at 55%, to roughly 32% participation in Q4 2024, reflecting widespread job losses during the war.
The data further showed that approximately 74% of those who had been employed in Gaza are now unemployed or outside the labour force. Youth have been particularly affected, with around 74% of individuals aged 15 to 29 not engaged in education, training, or employment.
The impact has extended to the West Bank, where the number of unemployed rose to about 280,000 in Q4 2025, compared to roughly 129,000 in Q3 2023, according to WAFA.
Regarding employment inside Israel, the number of West Bank workers fell dramatically from around 172,000 in Q3 2023 to 25,000 in Q4 2023, before gradually rising to 51,000 by Q4 2025.
The sharpest decline was among permit holders, whose numbers dropped from about 127,000 to 14,000, while workers without permits decreased from 37,000 to 21,000.
Meanwhile, the number of workers holding Israeli, Jerusalem, or foreign IDs increased from about 8,000 to approximately 17,000. ‒ Focus Malaysia
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