Gaza unemployment surges to 80% as financial system collapses, UN company says By Reuters

ZURICH (Reuters) – Unemployment in Gaza has soared to almost 80% because the Israel-Hamas battle erupted, with the devastated enclave’s financial system in virtually complete collapse, the Worldwide Labour Group mentioned on Thursday. 

Financial output has shrunk by 85% because the battle with Israel started a 12 months in the past, plunging virtually all the 2.3 million inhabitants into poverty, the United Nations company mentioned.

The battle has triggered “unprecedented and wide-ranging devastation on the labour market and the wider economy across the Occupied Palestinian Territory”, the ILO mentioned, referring to Gaza and the West Financial institution.

Within the West Financial institution, the unemployment fee averaged 34.9% between October 2023 and the tip of September 2024, whereas its financial system has contracted by 21.7% in contrast with the earlier 12 months, the ILO mentioned. 

Earlier than the disaster, the unemployment fee in Gaza was 45.3% and 14% within the West Financial institution, in line with the Geneva-based organisation. 

Gazans both misplaced their jobs solely or picked up casual and irregular work “primarily centred on the provision of essential goods and services,” the ILO mentioned.

Israel launched its offensive after Hamas-led gunmen attacked on Oct. 7, killing some 1,200 individuals and taking round 250 hostage, in line with Israeli tallies. 

Israel’s marketing campaign in response has killed greater than 42,000 individuals, in line with Gaza’s well being authorities.

Two-thirds of Gaza’s pre-war constructions – over 163,000 buildings – have been broken or flattened, in line with U.N. satellite tv for pc knowledge.

Israel says its operations are aimed toward rooting out Hamas militants hiding in tunnels and amongst Gaza’s civilian inhabitants.

The disaster has spilled into the West Financial institution, the place Israeli limitations to motion of individuals and items, coupled with broader commerce restrictions and supply-chain disruptions, have severely impacted the financial system, the ILO mentioned.

Israel says its actions within the West Financial institution have been essential to counter Iranian-backed militant teams and to forestall hurt to Israeli civilians.

“The impact of the war in the Gaza Strip has taken a toll far beyond loss of life, desperate humanitarian conditions and physical destruction,” mentioned ILO regional director for Arab states Ruba Jaradat.

“It has fundamentally altered the socio-economic landscape of Gaza, while also severely impacting the West Bank’s economy and labour market. The impact will be felt for generations to come.”