The Palestinian Central Bureau of Statistics reported on Thursday that unemployment in the Gaza Strip has surged to 68 percent following Israel's military offensive launched in October 2023. This sharp increase comes alongside a dramatic decline in labor force participation, which fell to 25 percent from 40 percent before the war, according to the Wafa news agency.
Widespread Destruction in Gaza
According to United Nations figures, Israel has destroyed nearly 92 percent of buildings in Gaza, including hospitals, schools, homes, commercial towers, and other infrastructure. Numerous international organizations have accused Israel of committing genocide in the enclave, where over 70,000 people have been killed and hundreds of thousands injured.
In Gaza City, the largest urban area with a population of approximately 590,000, workforce participation dropped from 55 percent in 2023 to around 32 percent by late 2024. The statistics bureau did not release data for Gaza City for 2025.
West Bank Unemployment Rises
Unemployment in the West Bank increased to 28 percent in 2025, up from 13 percent in 2023. The number of employed Palestinians in the territory fell from 868,000 to 736,000, primarily due to reduced job opportunities in construction, mining, manufacturing, and transport sectors.
Following the Hamas attack on October 7, 2023, Israeli authorities barred thousands of Palestinian workers from obtaining permits to work in Israel. In 2023, approximately 172,000 Palestinians were employed inside Israel, but that number plummeted to 25,000 after the war began. By 2025, the figure rebounded to 51,000 as Israel resumed issuing more permits.
