Unemployment and poverty in Gaza reach unprecedented levels

1 May 2024

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This International Workers Day, poverty and unemployment in Gaza have reached unprecedented levels as crisis leaves people with no source of income.

As well as losing loved ones, their homes and any semblance of safety and normality, hundreds of thousands of people in Gaza have also lost their livelihoods over the last six and half months and are now struggling to survive as the prices of essentials soar.  
 
As International Workers Day is marked around the world, poverty and unemployment in Gaza have reached unprecedented levels. Since October 7, at least 201,000 jobs have been lost, accounting for two thirds of total employment in Gaza, according to the International Labour Organisation. At the same time, the price of food and other essentials – when available – has skyrocketed, with reports of a bag of flour costing as much as £324 and one kilogram of sugar as much as £17, making them unaffordable for most of the population.  
 
Shirhan,
a displaced mother of six including a 13-month-old baby, told ActionAid: “There isn’t work for us to get money, we live one day at a time. Nappies are very expensive, and so is baby formula. We don’t have anything; I go around tents asking people for help. An individual nappy costs me 5 shekels [£1.09]. That is a lot of money for one nappy. And even if it were cheaper, we don’t have money to buy them. I use old pieces of cloth in place of nappies.” 


Almost all economic activity in Gaza has ground to a halt. With more than 85% of people displaced from their homes, and food and water scarce, most people are focused solely on their immediate survival, trying to find safe shelter and enough food for their families.  
 
Buthaina Subeh, director of Wefaq, Society for Women and Child Care, ActionAid Palestine’s partner in Gaza, said newly widowed women were struggling after becoming the main breadwinners for their families overnight. Buthaina said: “Looking at the growing number of people killed, most of who were married and had families, many women have had to become the sole provider for their families...This is a great burden on their shoulders. [It’s] a psychological, financial, and sociological burden that drains these women.” 
 
She said projects previously set up by Wefaq to support women in gaining their own income had been forced to close. Buthaina said: ‘We had over 120 micro projects throughout the past few years; projects for women who had been abused to help them support themselves and to help them be financially independent. Sadly...none of these projects are operational anymore.  
 
“It is very difficult to keep the businesses running in the current circumstances. Because raw materials are either expensive or unavailable. Business owners are also unable to purchase products due to the high prices and the instability of prices going up and down which causes [them] to fear the future. Two women came for a consultation regarding the unstable prices, saying they fear buying materials and keeping them in stock. There is this fear of paying extra then losing the money due to a sudden price drop. There is a major financial risk for them. They had to cease their work and projects; and they lost their source of income.” 
 
Even before October 7, hundreds of thousands of people in Gaza were deprived of a livelihood, their employment opportunities severely limited after more than 17 years living under Israel’s illegal blockade. Two thirds of the population lived in poverty, according to UNCTAD, and 45% of the workforce was unemployed – with women disproportionately affected.  
 
Now, close to seven months of bombardment has left much of Gaza in ruins. Between 50% and 61% of Gaza’s buildings – including homes, shops, businesses, universities, schools and hospitals – are believed to have been damaged or destroyed, along with 92% of primary roads. The total cost of damage to critical infrastructure is estimated at around $18.5 billion, according to the World Bank.  
 
In the West Bank, employment has also been severely impacted since October 7. At least 306,000 jobs – or more than one third of total employment – have been lost, according to the ILO. Permits allowing Palestinians to work in Israel have been revoked, while dozens of new checkpoints have been put up between towns and cities in the West Bank, preventing people from accessing their workplace.  
 
Riham Jafari, Advocacy and Communications Coordinator at ActionAid Palestine said:
“Being robbed of the opportunity to work and provide for their families is another way in which the dignity and rights of Palestinian people have been eroded after close to seven months of horror and trauma.  
 
“Women were already disproportionately affected by poverty and unemployment but since October 7, the pressure on them has increased. Women whose husbands have been killed or detained have become singlehandedly responsible for providing for their families, at the same time as any available sources of income have disappeared. Financial hardships in many households may exacerbate the risk of violence against women.  
 
“In Gaza, most of the population is unable to afford food and other essentials, and with aid still not entering the territory at anything like the scale required, people are being pushed closer to famine. There must be an immediate and permanent ceasefire if there is to be any hope of averting further deaths from malnutrition and disease. It is the only way to stop the killing, and to get enough aid to those who need it.” 

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Riham Jafari is available as a spokesperson, please contact the press office to arrange.