Full Breakdown
West Bank Employment Rises in Q2 2026 Amid Ongoing Economic Strain
8/13/2026, 8:12:30 AM
Core Employment Gains
The Palestinian Central Bureau of Statistics (PCBS) reported that total employment in the West Bank increased by 4.6 % in the second quarter of 2026, bringing the labor force to 733,000 workers. The rise reflects an addition of roughly 27,000 jobs compared with the first quarter and is driven primarily by the commerce, restaurant and hotel sectors.
Context of Decline and Recovery
Tourism to the West Bank collapsed after the Hamas attack on October 7 2023, a shock that had already been amplified by the COVID-19 pandemic. A 2024 UN Trade and Development report noted that 96 % of businesses reported reduced activity following the October 7 massacre, and 42.1 % cut staff, resulting in the loss of about 306,000 jobs and pushing unemployment to 32 %. The same report added that 140,000 Palestinian workers who held permits to work in Israel saw those permits revoked after the attack.
Labor-Market Statistics
- Unemployment among persons aged 15 and over stood at 27.9 % in Q2 2026, equivalent to roughly 284,000 people; total labor underutilization was about 29.9 %.
- Male unemployment was 27.2 % versus 30.5 % for women, per International Labour Organization standards.
- Average daily wages for West Bank workers were NIS 134.3, just over half of Israel’s minimum daily wage of NIS 257.75.
- Approximately 53,000 Palestinians worked in Israel or Israeli settlements during the quarter, an increase of about 5,000 from Q1, with 35,000 employed inside Israel.
- The average daily wage for wage employees in Israel and settlements fell to NIS 263.4 from NIS 287.1 in the prior quarter.
- Workers logged an average of 41.6 hours per week and 22.4 days per month.
Working Conditions and Benefits
PCBS data show that 66.1 % of employed persons were wage employees, while 4 % were self-employed, 6 % employers and 4.5 % unpaid family members. Among private-sector wage employees, 42.1 % were hired without a formal employment contract, and only 35.5 % received pension contributions or severance pay. Female wage employees received paid maternity leave at a rate of 49.8 %, despite a legal entitlement to 10 weeks and protection from termination during leave.
Implications
While the modest employment growth signals a partial rebound, persistently low wages, limited contract security and inadequate maternity benefits suggest that many workers continue to face economic vulnerability. The contrast between West Bank earnings and Israeli minimum wages underscores broader regional disparities that may shape labor mobility and policy discussions in the months ahead.
