Economists have estimated the unemployment rate in the Gaza Strip at 52 per cent and found a sharp drop in the average wage in the private sector where the minimum wage is 1450 shekels ($ 1 = 3.5 shekels) according to the Palestinian Labor Code.
The average daily wage has fallen sharply because of the number of unemployed persons who are 300,000 and because of the disrespect of the Labor Code which has allowed some employers to exploit workers by lowering wages and increasing working hours.
In this context, 'Al-Araby Al-Jadeed' reported, citing official sources, that workers are at an average wage ranging from 10 to 20 shekels or about 750 shekels per month. These same workers prefer not to resort to justice so as not to risk losing their jobs, especially with the high unemployment rates. Compensation for government contracts at the level of the Gaza Strip varies between 750 and 1200 shekels per month for graduates, which is contrary to the Labor Code, which sets the sum of 1450 shekels as the minimum wage.
Economists have explained that the average wage has declined by at least 7% due to the crisis in the sector and said that this fall is also due to the strong labor supply in the labor market faced with minimal demand because of the encirclement imposed on Gaza by the Zionist occupation.