Gaza's Economic Collapse: 80% Unemployment Leaves Residents Struggling for Cash
Gaza's 80% Unemployment Crisis Leaves Residents Struggling

Gaza's Devastating Jobs Crisis Leaves Population Dependent on Scarce Cash

In the Nuseirat refugee camp near Deir al-Balah, market stalls display fresh fruit and other goods, but few can afford them. This scene encapsulates Gaza's profound economic crisis, where unemployment has reached an estimated 80% and the economy has shrunk to just 13% of its pre-war size.

From Fisherman to Job Seeker: Mansour Mohammad Bakr's Struggle

Every morning, 23-year-old Mansour Mohammad Bakr leaves the small room in Gaza City he shares with his pregnant wife and two young daughters. He walks past the Mediterranean port where he once worked as a fisherman, sharing equipment with his father and brothers. Today, his brothers are dead, his father is too old, and all their fishing gear was destroyed during the conflict.

"Money is the main means of survival in Gaza... without it, a person cannot do anything," Bakr says. "The limited aid that reaches us doesn't replace our need for money in any way and doesn't cover even the most basic living requirements."

Bakr represents hundreds of thousands across Gaza who desperately need employment. His dream of returning to fishing faces impossible obstacles: even if he could find a boat, Israeli restrictions at sea would prevent him from working.

Aid Increases but Falls Short of Needs

Humanitarian organizations have expanded distributions since October's ceasefire agreement, which led Israel to ease some restrictions on aid delivery within Gaza. In January, UN agencies and partners reached approximately 1.6 million people with household-level food assistance. World Central Kitchen now serves 1 million hot meals daily.

Yet this assistance remains vastly insufficient, covering only basic necessities. For everything else—transportation, haircuts, mobile phone charging, and additional food—Palestinians need cash.

"There has been a huge increase in commercial supplies... but it is all very expensive," says Kate Charlton, a Médecins Sans Frontières medical coordinator in Gaza City.

Former Trader Mohammed al-Far's Desperate Search

Mohammed al-Far, a 55-year-old former trader living with his family in al-Mawasi's crowded tent encampments, receives only one meal daily from aid organizations: "either rice, lentils or beans, and once or twice a week, some meat."

"Life requires cash to go on," al-Far explains. "We can get enough to eat... but transportation, haircuts, charging mobile phones and buying vegetables and fruit all require money."

Al-Far has attempted to launch falafel and sweets businesses without success, accumulating substantial debts. His age makes finding work particularly difficult: "My health is still good, and I'm ready to do anything, but employers are looking for younger workers. I have been searching for months and months... I walk around the market looking for work, but without success."

Economic Collapse of Historic Proportions

The unemployment crisis stems from Gaza's catastrophic economic collapse. Pedro Manuel Moreno, deputy secretary general of the UN's trade and development agency, stated in November that the war had "wiped out decades of progress" and that Gaza was experiencing "the fastest and most damaging economic collapse ever recorded."

UN data reveals Gaza's GDP per capita fell to just $161 annually in 2024—among the world's lowest figures. The Israeli offensive destroyed:

  • Sanitation systems
  • Transport infrastructure
  • Power networks
  • Healthcare facilities
  • Agricultural fields and greenhouses
  • The fishing industry that once employed thousands

Educated Professionals Face Equal Hardship

Even those with advanced qualifications struggle amid the ruins. Bisan Mohammad graduated with a degree in medical laboratory sciences just months before the war began. Her husband, a security guard, was killed early in the conflict, leaving her alone to provide for their daughter. She now lives in a tent with her parents in Nuseirat.

"I began looking for any available job but without success... everything needs money; even water, food and bedding all require cash," says the 23-year-old. "Sometimes I feel that even breathing needs money."

Mohammad describes how the so-called ceasefire has worsened conditions: "The media has stopped talking about the ongoing killing... while the bombardment continues... prices keep rising, and even basic necessities, when available, such as water and food, are barely sufficient."

Reconstruction Stalled Amid Political Deadlock

The October ceasefire agreement was supposed to initiate swift reconstruction, but progress has largely stalled. While some elements have advanced—including hostage returns and limited reopening of the Rafah crossing—political obstacles remain substantial.

Hamas controls most of the coastal area where Gaza's 2.3 million residents now live and remains reluctant to fully disarm. Israel appears unwilling to relinquish control over more than half the territory and has blocked the technocratic administration intended to govern Gaza under previous peace plans.

Violence has continued despite the ceasefire, with Israel launching more attacks in January than in any month since October, according to the independent conflict monitor Acled. Gaza health authorities report 586 Palestinians killed since the truce took effect, bringing the war's overall death toll to more than 72,000, mostly civilians.

Uncertain Future for Gaza's Population

For residents like Bisan Mohammad, the future appears terrifyingly uncertain: "I don't think about the future and I don't try to; thinking about it is exhausting and frightening, and the future is unclear. I don't know what will happen to me or my daughter if this situation continues without work or income."

Meanwhile, Mansour Bakr clings to his fading dream: "I dream of returning to the sea and to the profession of fishing, and of being able one day to buy a fishing boat like the one I used to own, so I can provide my family with food, drink, clothing and medicine."

As market stalls in Gaza display goods few can purchase, the territory's economic devastation continues to deepen, leaving an entire population dependent on aid that cannot replace the cash essential for daily survival.