ILO Bulletin No. 4 – Impact of the war in Gaza on the labour market and livelihoods in the Occupied Palestinian Territory

The ongoing war in Gaza continues to underscore the vulnerability of the economy in the OPT, with profound labour market implications, not only in the Gaza Strip but also in the West Bank.

Immediate and long-term support is crucial, encompassing financial assistance for reconstruction, business recovery support, social protection measures and income generation schemes, among others. As we look towards the recovery of the Palestinian economy and labour market, structural reforms are essential to reduce dependence on external factors, including primarily the Israeli economy. Instead, fostering a diversified economy with fair and decent wages is imperative. This calls for governmental commitment and reforms, including a comprehensive suite of policies that not only build upon but also adapt the current Palestinian National Employment Strategy to reflect the changing realities in the OPT. Efforts on both the demand and supply sides are vital, entailing measures to promote market diversification, retain workers, and invest in skills development to meet evolving market demands, boost productivity and create a more resilient labour market. Given the constraints of limited financial resources within the Palestinian economy, external support is of critical importance in driving recovery efforts, emphasizing clear and targeted policies to assist employers, workers (including the self-employed), and those grappling with unemployment or job insecurity.

Above all, the Gaza Strip urgently requires a ceasefire, alongside a significant scale-up in humanitarian assistance. As recovery and eventual reconstruction efforts commence in due course, it becomes imperative to prioritize safe working conditions guided by the principles of occupational safety and health. Another factor of critical importance is the establishment of a fair wage system based on the principles of decent work, which would need to be applied throughout the reconstruction process and beyond. Emphasizing an employment-intensive approach to the recovery and reconstruction of the Strip is also critical. This would not only facilitate economic recovery but also generate much needed employment opportunities for the local labour force.  Engaging Palestinian small and medium-sized enterprises to the fullest extent possible and offering targeted short-term skills training to individuals are essential aspects of such efforts.