The Palestinian situation continues to be characterized by a stalled peace process, increased political instability and a protracted fiscal crisis. The lack of economic prospects, particularly in Gaza, as well as heightened political and security tension, strain the livelihoods of hundreds of thousands of Palestinians, limiting their access to economic opportunities and decent work. Unemployment rates are among the highest in the region, particularly among women and youth.

Against this backdrop, numerous employment/job creation programmes have been, and continue to be, pursued in the OPT to help alleviate the strains that emerge from these difficult economic and labour market conditions. Their impact has however been quite limited in lifting and keeping people out of poverty, as well in terms of helping the school-to-work transition of young people towards more sustainable jobs.

This employment diagnostic study provides an analysis of recent labour market trends and a detailed assessment of the effectiveness of the existing employment services and programmes, including the identification of their weaknesses and shortfalls. The study concludes with a set of recommendations that focus on priorities that are believed to be key for inducing job-rich growth in the short term, while laying the foundations for effective implementation of the broader long-term policy orientations.