Nearly half of Gazans unemployed - UNRWA report

In the Gaza Strip at the end of 2007, over half the population was living below the official poverty line, and unemployment, in real adjusted terms, stood at an "unprecedented high" of about 45 percent, a new UN study released on 24 July said.

Most of the poor were extremely destitute, with 35 percent of Gazans living below the deep poverty line set at US$457 per month for a family of six.

Overall, the unemployment rate in the occupied Palestinian territory (oPt) in 2007 remained "amongst the highest in the world" at 29.5 percent, with refugees being hit slightly harder.

The socio-economic report for 2007 by the UN agency for Palestinian refugees (UNRWA) said the oPt "continued to have the worst performing economy in the Middle East-North Africa sub-region".

The study was based largely on data from the Palestinian Central Bureau of Statistics.

West Bank

In the West Bank there was some improvement, especially in the second half of 2007, leaving only about 20 percent below the monthly consumption poverty line of $572 for a six-member household, largely due to the lifting of sanctions on that territory, which seemed to be the route for economic recovery in Gaza as well.

"How better to prevent despair and economic misery taking hold of a whole generation than to re-open Gaza's borders?" said Christopher Gunness, an UNRWA spokesman. The report noted that the younger segment of the workforce was the most likely to be affected by unemployment.

The donor dependent Palestinian Authority was placed under economic sanctions in early 2006, following the Islamist Hamas movement's election victory. The boycott of the West Bank ended after Hamas took over Gaza, and President Mahmoud Abbas formed a new West Bank government without Hamas members.

Israeli sanctions on Gaza have been very tight, though there has been evidence of a slight relaxation following a recent ceasefire deal.

Tunnels

The public sector, long since considered inflated, remained a cornerstone of the economy and the major employer, particularly in Gaza. Most new jobs for Gazans were created, the report said, either by activities related to the tunnels used for smuggling goods from Sinai (Egypt) or by job creation programmes run by the Hamas administration in the enclave.

Photo: Shabtai Gold/IRIN

Palestinians wait at the Qalandia checkpoint outside Ramallah during a closure in the West Bank

The report warned that public and private sector investment was needed to improve the economy.

In May 2008, outside the reporting period for this study, the first ever Palestinian Investment Conference took place and its organisers said they hoped it would provide an economic boost.

Israeli-imposed restrictions on movement remained a key impediment to economic growth, which has been slipping in the past eight years since the outbreak of violence in September 2000, the report said.

Israel says it needs the matrix of checkpoints, barriers and roadblocks to ensure the safety of its citizens.

Meanwhile, UNRWA's director in the enclave, John Ging, said on 23 July that his agency, using funds donated by the European Commission, would give out $6 million in financial aid to some 93,000 refugees considered to be "the most disadvantaged people in the Gaza Strip".

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