Gaza poverty and unemployment surge following Israeli conflict

January 4, 2026 • Al Jazeera

Gaza poverty and unemployment surge following Israeli conflict

Gaza City Residents Struggle Amid Economic Crisis

A family of nine has been forced to take shelter at a United Nations-run school in central Gaza City due to the loss of their home during Israel’s recent conflict. Alaa Alzanin, 41, and his wife are among thousands of Gazans who have lost their jobs as unemployment rates soared to 50% across Palestine and 80% in the Gaza Strip.

Alzanin, a former day laborer, has been unable to find work due to his unemployment status. His family relies on financial aid from the Ministry of Development and charity to survive. Similarly, Majed Hamouda, a 53-year-old man with polio, has had his aid payment suspended since the war began.

The Gaza Strip’s economy has suffered significantly, with its GDP plummeting by 83% in 2024 compared to the previous year. The enclave’s GDP per capita dropped to $16, down from levels seen in 2003. The Palestinian Central Bureau of Statistics reported that there are 550,000 unemployed people across Palestine.

The World Food Programme has stated that supplies entering the besieged enclave are not meeting the nutritional needs of those living there. Only two crossings into the Palestinian territory are open, and Israel’s restrictions on deliveries have limited the amount of aid available. The UN Conference on Trade and Development reported that the Palestinian gross domestic product (GDP) had regressed to its 2010 level by the end of last year.

The situation has left many Gazans struggling to access basic necessities, with some families relying on makeshift means such as collecting plastics and rubbish to sell in order to support themselves. The economic crisis has also taken a toll on education, with one family’s son having to collect materials instead of attending school due to the lack of resources.

Source: Al Jazeera