ILO: Gaza faces economic devastation as War enters 2nd year
Gaza is facing devastating economic repercussions as the war enters its second year, according to the latest bulletin by the International Labour Organisation (ILO) on Thursday.
The overall economy of the Occupied Palestinian Territories (OPT) has seen a staggering decline, with real GDP plunging by 32.2 per cent. The West Bank contracted by 21.7 per cent, while Gaza experienced a catastrophic drop of 84.7 per cent.
Severe Sector Declines
Key sectors have been severely impacted, with value added in construction falling by 47.3 per cent and manufacturing, mining, water, and electricity decreasing by 35.4 per cent. Even the usually resilient information and communication services sector saw an 18.5 per cent decline, driven by ongoing restrictions on labour and material movement.
Deteriorating Living Standards
This economic downturn has led to a sharp decline in living standards, with real GDP per capita across the OPT decreasing by 33.4 per cent. In Gaza, per capita GDP has plunged by 84.9 per cent, now accounting for just 5.2 per cent of that in the West Bank.
Surging Unemployment Rates
The labour market has been hit hard, with unemployment soaring to 51.1 per cent across the OPT, reaching 34.9 per cent in the West Bank and a staggering 79.7 per cent in Gaza. Over the past year, total unemployment averaged 734,685, marking a rise of 363,213 compared to the previous year. Labour force participation has also fallen from 45.2 per cent to 43.5 per cent.
Disproportionate Impact on Men
In the West Bank, men have suffered the most, with employment plummeting by over 28 per cent, tripling unemployment rates, and increasing inactivity levels by 12.3 per cent, largely due to the loss of over 150,000 jobs in Israel.
Challenges Faced by Women in the Workforce
While women have faced fewer job losses, concerns remain regarding their low employment rates and the challenges they face in reintegrating into the labor market.
Declining Wages and Persistent Pay Gap
Real daily wages in the West Bank have also decreased, with men experiencing a more significant decline. Despite these challenges, a persistent gender pay gap remains, with women earning 19 per cent less than men.
Call for Sustainable Recovery and Infrastructure Development
Experts emphasize the urgent need for an end to hostilities to enable a sustainable recovery, advocating for a “building forward better” approach that prioritizes infrastructure development, decent job creation, and inclusive economic support.
Subediting: Y.Yasser
Attribution: A Year of War in Gaza-Bulletin 5-October 2024-FINAL(en)
