Palestine Economy Portal

The number of employed persons (excluded workers abroad) increased from about 994 thousand in the 1st quarter of 2021 to about 1.016 thousand in the 2nd  quarter of 2021, by 2% compared to the 1st quarter of 2021. It increased in the West Bank by 1% compared to the 1st quarter 2021, increased by 6% in Gaza Strip for the same period.

The largest increase reported among wage employees, as this number increased by 9 thousands employed persons, also the number increased between the two quarters mentioned by 11 thousand for own account workers (employers and self employed), also it increased by one thousand for unpaid family workers.

An increase in the number of employed persons in the local market between the 1st and 2nd  quarters of 2021

The number of employed persons in the local market increased from 856 thousand employed person in the 1st quarter of 2021 to 869 thousand employed persons in the 2nd  quarter of 2021, where it increased by 6% in Gaza Strip while it decreased by 0.1% in the West Bank for the same period.

The results showed that most of the activities witnessed an increase in the number of employed persons during the 2nd  quarter of 2021 are those employed in commerce and hotels, then agriculture and other services[1],  while constructions, Manufacturing, transport and storage activities witnessed a notice decrease in the number of employed persons.

The average weekly working hours for wage employees in the West Bank was 43.1 hours per week compared to 37.0 hours in Gaza Strip. The average monthly working days was 23.0 working days in the West Bank compared to 22.6 working days in Gaza Strip.

An increase in the number of employed persons in Israel by 8 thousands between the 1st and 2nd  quarters of 2021

The number of employed persons in Israel increased from about 138 thousand employed person in the 1st quarter of 2021 to about 146 thousand employed person in the 2nd  quarter of 2021; where the highest increase was in the number of workers in constructions by about 11 thousand, then commerce and hotels  by about 3 thousands and the agriculture activity remained at the same level, while the number of employed in other services decreased by about 3 thousand, and the number decreased by about 2 thousands in manufacturing and transport activities. The number of employed persons in Israeli settlements decreased from about 21 thousand in the 1st quarter 2021 to about 19 thousand employed person in the 2nd  quarter 2021.

The average daily wage for the wage employees in Israel and Israeli settlements remains at the same level it reached 265 NIS  in the 2nd quarter 2021compared to 264 NIS.

7 out of 10 employed persons are wage employees

71% of employed persons are wage employees, 24% of employed persons are self-employed and employers, and 5% are unpaid family members.

More than half of the wage employees in the private sector were hired without any contract.

53% of wage employees in the private sector were hired without any contract, and 30% of wage employees receive a contribution to a pension fund/end of service compensation. Moreover, about half of wage female employees (49%) have a paid maternity leave.

29% of wage employees in the private sector receive less than the minimum wage (1,450 NIS) in Palestine

The percentage of wage employees in the private sector who receive less than the minimum wage in the West Bank increased slightly from 7% to 8% between the 1st quarter 2021 and the 2nd quarter 2021, (The number remained at the same level about 18 thousand), the percentage increased slightly from 79% to about 80% in Gaza Strip (The number decreased from 85 thousand to 82 thousand) during the same period.

The monthly minimum wage in Gaza Strip was (655 NIS) compared with (1,142 NIS) in the West Bank.

A decrease in the labour force participation in Gaza Strip

The participation rate in the labour force remained at the same level between the 1st quarter and the 2nd  quarter 2021 about 43%, Also, data indicated that this percentage remained at the same level about 46% in the West Bank, while it decreased in Gaza Strip from 39% to 38% during the same period.

The male participation rate in the labour force decreased from 69% to 68% between the 1st quarter of 2021 and the 2nd quarter 2021, While the female participation rate increased from 16% to about 17% during the same period.

The unemployment rate among labour force participants (15 years and over) in the 2nd  quarter was about 26%, while the total underutilization of labour was about 34%, according to the revised International Labour Organization standards (ICLS-19th).

The number of unemployed persons reached 366 thousands in the 2nd  quarter of 2021; of which 212 thousand persons in Gaza Strip and 154 thousand person in the West Bank. Hence, the disparity remains large in the unemployment rate between the West Bank and Gaza Strip, as this rate reached 45% in Gaza Strip compared to 17% in the West Bank. As for the sex level, the unemployment rate for males in Palestine reached 23% compared to 42% for females.

Within the same context, the total underutilisation reached 521 thousand person, as this number includes 76 thousand discouraged job seekers and 23 thousand in time-related underemployment