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!
!!
remained significantly below those of
SUMMARY non-refugees on average.
A summary of trends in the West Bank
Contrary to media reports of a labour market as a whole, and for
flourishing West Bank economy, refugees and non-refugees separately,
evidence from the second half of 2010 is provided below. Section 1 provides
shows deteriorating labour market overall findings regarding labour force
conditions, with falling employment participation, employment by sector
growth, accelerating unemployment and activity, unemployment, and
and lower real wages. These trends wages in the West Bank. Section 2
disproportionately affected refugees. presents results for refugees, and
Section 3 discusses non-refugees.
In second-half 2010 (H2 2010), non-
refugees deepened their labour The reference period is the second
market activity while refugees half of 2010. Sequential changes
! withdrew further, continuing the compare second-half 2010 with first-
shrinkage in the West Bank refugee half (H1) 2010 and can include
! labour force. In the context of overall significant seasonal fluctuations. In
! robust labour force growth, both tables, sequential changes appear
! employment levels and unemployment under the column “+/- (Seq.)”. Parallel
changes compare second-half 2010
! levels increased in the reporting
with second-half (H2) 2009 for a year-
period. Non-refugees accounted for all
! on-year comparison. This largely
net employment gains as refugee
! employment receded. At the same eliminates seasonal fluctuations in the
! time, non-refugees accounted for all data. Parallel changes in tables
! the growth in unemployment. Reduced appear under the heading “+/- (Par.)”.
! refugee labour force participation
! resulted in a decline in the number of LABOUR MARKET
unemployed refugees.
!
! In the year-on-year period, the private CONDITIONS
! sector dominated employment growth,
This section describes general labour
but the public sector and employment
! market conditions for the entire West
in Israel and the settlements also
! contributed to job creation. Refugee Bank population, including refugees
! employment gains were confined to and non-refugees.
! the public sector. Real wages
POPULATION AND
! continued to deteriorate under the
! volume and persistence of LABOUR FORCE
unemployment and consumer price
! inflation. The data further indicate a
The average working-age population
! deceleration in the rate of employment
(15 years of age or older) in the West
Bank (including East Jerusalem) is
! growth and an increase in the rate of estimated to have grown by about 1.8
! unemployment growth. percent between second-half 2010
UNRWA Unemployment rates increased for and first-half 2010. The broad labour
PO Box 19149 refugees and non-refugees alike, with force participation rate, that is the
Sheikh Jarrah refugee unemployment rates proportion of the working-age
East Jerusalem remaining significantly above those for population that was either employed,
+97225890400 non-refugees. Real wages declined actively seeking employment or willing
across the board as refugee wages to work, rose from 46.8 to 47.5 percent
1 Comparing second-half 2010 with
in second-half 2010. The labour
In H2 2010, second-half 2009 indicates total
force—calculated as the product of the
unemployment employment growth of about 14,000,
working age population and the labour
or 2.6 percent. There were
in the West force participation rate—increased 3.3
employment gains in all sectors, with
Bank stood at percent to an estimated 730,930
the private sector accounting for about
persons. There were about 5,500
25 percent 63 percent of the growth, or about
fewer persons employed in second-
! half 2010, a decline of about 1 percent
9,800 positions. The public sector and
! relative to first-half 2010. The broad
employment in Israel and the
settlements each accounted for about
! unemployment rate rose about 3.3
18 percent of total job growth in the
! percent, to 25 percent, and the
parallel comparison, each adding
! number of unemployed grew 19.1
about 2,800 jobs. The generally lower
percent, affecting an estimated
! 2 rates of job growth in the sequential
183,000 persons in the West Bank.
! period comparison suggest a
! On a year-on-year basis, the broad deceleration in job creation in second-
labour force grew by an estimated 4.6 half 2010.
! percent, or about 32,000 persons.
! Employment grew by roughly 2.6 PRIVATE SECTOR
! percent, while the number of EMPLOYMENT
! unemployed increased by 11 percent,
Private sector employment shrank by
! or more than 19,000 persons. The
an average of 1.6 percent in the
! unemployment rate in second-half
sequential period, or about 6,350 jobs.
2010—25 percent—was about 1.5
! percent higher than in second-half Construction employment declined by
Labour force 2009. about 5,000 positions, accounting for
participation 35 percent of private sector job losses.
reached 47.5% EMPLOYMENT BY SECTOR Manufacturing lost 4,275 positions,
accounting for another 30 percent of
in H2 2010, The decline in broad employment in losses. Agriculture and transport and
1.5% higher the second half of 2010 was communications each accounted for
composed of a 3.6 percent reduction
than in H1 about 17 percent of total job losses,
in employment in Israel and the
! settlements and a 1.6 percent drop in
about 2,500 each, in the sequential
comparison. Only commerce
! private sector employment relative to (wholesale and retail trade) added
! first-half 2010. These developments jobs, with commerce responsible for
! were partly offset by a 3.5 percent about 83 percent of the gains.
! increase in public sector employment.
In absolute terms, there were 6,300 In the parallel period comparison there
! were about 9,800 more jobs, a growth
fewer private sector jobs; 2,900 fewer
! Palestinians working in Israel and the rate of 2.6 percent. Commerce and
! settlements; and about 3,150 more construction led the gains, each
! public sector jobs in the sequential adding more than 5,000 jobs. Private
! period. services (which include employment in
!
! TABLE 1 BROAD LABOUR MARKET AGGREGATES (WEST BANK)
! 2009 H2 2010 H1 2010 H2 + / - (Seq.) + / - (Par.)
! Working-age popʼn 1,482,258 1,509,273 1,536,510 1.80% 3.66%
! Labour force (%) 47.1% 46.8% 47.5% 1.52% 0.91%
! Labour force (#) 698,774 707,255 730,933 3.35% 4.60%
Employment (#) 533,901 553,588 547,919 -1.02% 2.63%
Employment in Unemployment (#) 164,873 153,667 183,014 19.10% 11.00%
the private Unemployment (%) 23.6% 21.7% 25.0% 15.34% 6.25%
sector and in
Israel and the TABLE 2 EMPLOYMENT BY SECTOR (WEST BANK)
settlements 2009 H2 2010 H1 2010 H2 + / - (Seq.) + / - (Par.)
Public sector 88,688 88,342 91,498 3.57% 3.17%
declined in H2 Private sector 368,562 384,703 378,359 -1.65% 2.66%
2010 Israel and settlements 73,790 79,619 76,723 -3.64% 3.97%
TOTAL 533,901 553,588 547,919 -1.02% 2.63%
! UNRWA and NGOs) added about
incomes.
Of six major 2,300 positions, accounting for roughly In the parallel period, nominal daily
private sector 16 percent of gains, while agriculture wages rose 1.2 percent, with the
activities, only added about 1,725 jobs, or 12 percent average monthly wage rising 0.9
of private sector employment growth in percent relative to second-half 2009.
two recorded
parallel comparison. Manufacturing Year-on-year consumer inflation of 3.6
employment and transportation and communication percent resulted in a 2.6 percent
gains during detracted from employment, each decline in the purchasing power of the
H2 2010 losing more than 2,250 jobs in the average West Bank monthly wage.
! year-on-year period. Negative private Despite a 2.6 percent increase in
! sector employment growth in the employment and slightly higher
sequential period (second-half 2010 nominal wages in the year-on-year
! relative to first-half 2010), as period, real wages continued to
! compared to the parallel period deteriorate. Despite growth in the
! (second-half 2010 relative to second- number of Palestinians working in
! half 2009), suggests a deceleration of relatively high-wage jobs in Israel,
! private sector job growth. persistently high levels of
! unemployment, and low private sector
WAGE RATES AND wages continued to depress average
! MONTHLY WAGES real wages in the West Bank.
!
! Significant levels of long-term
! unemployment in the West Bank REFUGEE LABOUR
MARKET IN THE
continued to undermine wages in both
! period comparisons. The average
!
Significant long-
nominal daily wage in the West Bank
grew by only 0.9 percent in second-
WEST BANK
term unemploy- half 2010 relative to first-half 2010, to
NIS 102.5 (about USD 27.6). The This section describes labour market
ment continued conditions facing refugees in the West
employed in the West Bank worked an
to undermine average of 21.9 days per month, up 1 Bank in second-half 2010. It provides
wages in the percent relative to the first-half 2010. sequential and parallel comparisons
West Bank The combined effect of a slightly with H1 2010 and H2 2009.
! higher daily wage and days worked REFUGEE POPULATION
! per month was a 1.9 percent increase
AND LABOUR FORCE
in the average nominal monthly wage
!
to NIS 2,245 (about USD 605.7). Among refugees, the estimated
! Consumer price inflation of 2.3 percent working-age population in the West
! in second-half 2010 eroded the Bank was 443,000 persons in second-
! average real monthly wage by 0.3 3
half 2010. The broad refugee labour
! percent relative to first-half 2010. force participation rate was virtually
! There was therefore a further slide in
the purchasing power of wage
!
!
TABLE 3 PRIVATE SECTOR EMPLOYMENT (WEST BANK)
! 2009 H2 2010 H1 2010 H2 + / - (Seq.) + / - (Par.)
! Agriculture, fishing 63,865 68,073 65,593 -3.64% 2.71%
! Manufacturing, mining 65,675 67,566 63,290 -6.33% -3.63%
! Construction 46,013 56,157 51,148 -8.92% 11.16%
! Commerce, tourism 94,793 93,407 100,036 7.10% 5.53%
Transport, communicʼn 27,608 27,908 25,371 -9.09% -8.10%
! Private services 70,608 71,591 72,921 1.86% 3.28%
Consumer TOTAL 368,562 384,703 378,359 -1.65% 2.66%
inflation of 3.6%
contributed to a TABLE 4 WEST BANK AVERAGE WAGES (IN NIS)
2009 H2 2010 H1 2010 H2 + / - (Seq.) + / - (Par.)
2.6% drop in
Daily wage 101.2 101.5 102.5 0.90% 1.28%
the purchasing Monthly days 22.0 21.7 21.9 1.07% -0.31%
power of the Monthly wage 2,224 2,202 2,245 1.98% 0.96%
monthly wage Deflator (2004 = 1.00) 1.24 1.25 1.28 2.36% 3.67%
Real monthly wage 1,799 1,759 1,752 -0.37% -2.61%
unchanged relative to first-half 2010. REFUGEE EMPLOYMENT
Employment of This resulted in a 1.1 percent increase BY SECTOR
refugees fell by in the refugee labour force to 177,480
persons, about 2,000 more than in the Refugee employment declined by
2.1% in H2 first half of the year. While about 2.1 percent, or 2,800 jobs, in
2010 – over employment in the West Bank second-half 2010 relative to first-half
twice as high as declined about 1 percent in second- 2010. About 83 percent of these lost
half 2010, refugee employment fell 2.1 positions were accounted for by
the 1% drop for employment declines in Israel and the
the entire area percent, or about 2,800 positions. At
the same time, refugee unemployment settlements, with the remainder
in broad terms increased by 10.5 accounted for by falls in public sector
percent or 4,700 persons—less rapidly employment. There was a small
! than for the labour force as a whole increase in refugee employment in the
! (see above). The average broad private sector in the sequential period.
! refugee unemployment rate rose by Refugee employment declined even
! about 2.4 percent, to 27.9 percent – more in the parallel period
! higher than the West Bank as a whole. comparison, by 6.5 percent or nearly
! The year-on-year data indicate a 5 9,000 jobs. About 54.4 percent of the
losses were from employment in Israel
! percent decline in the refugee labour
and the settlements, while the private
! force relative to second-half 2009. In
sector accounted for 45.5 percent of
! absolute terms, roughly 11,400 fewer
refugees were economically engaged the decline. Employment in Israel and
! in second-half 2010 relative to the the settlements declined by an
! parallel period in 2009. This consisted estimated 29.5 percent. Refugee
! of a decline of 11,000 employed public sector employment increased
refugees and about 400 fewer marginally in the parallel period
Refugee
unemployed refugees (those seeking comparison. The drop in refugee
employment employment stands in contrast to the
work or willing to work but not actively
was 6.5% lower searching). This constitutes a general increase in employment,
in H2 2010 than significant net withdrawal of refugees particularly that in the domestic private
in H2 2009 4
from the labour force. Unlike non- sector (see above).
! refugees, refugees withdrew from the
REFUGEE PRIVATE
! West Bank labour force in the year-on-
SECTOR EMPLOYMENT
year period and did not share in the
!
employment growth during this period.
! Fewer unemployed refugees in
Refugee private sector employment
rose slightly, about 350 jobs in the
! absolute terms, however, did not sequential period comparison. There
! translate into a lower unemployment were declines in employment in four of
! rate. Even after withdrawal from the six activities, including agriculture,
! labour force, refugees experienced a manufacturing, construction, and
slightly higher unemployment rate.
! private services (including UNRWA
! ! and NGOs). These declines were
offset by rapid growth in jobs in
!
!
! TABLE 5 REFUGEE BROAD LABOUR MARKET AGGREGATES (WEST BANK)
! 2009 H2 2010 H1 2010 H2 + / - (Seq.) + / - (Par.)
Working-age people (#) 427,350 435,139 442,991 1.80% 3.66%
! Labour force (%) 43.7% 40.3% 40.0% -0.69% -8.37%
! Labour force (#) 186,863 175,547 177,482 1.10% -5.02%
Refugee Employment (#) 136,873 130,683 127,898 -2.13% -6.56%
employment in Unemployment (#) 49,990 44,864 49,584 10.52% -0.81%
Unemployment (%) 26.7% 25.5% 27.9% 9.34% 4.47%
Israel and
settlements
TABLE 6 REFUGEE EMPLOYMENT BY SECTOR (WEST BANK)
dropped almost 2009 H2 2010 H1 2010 H2 + / - (Seq.) + / - (Par.)
30% in H2 2010 Public sector 24,394 25,278 24,769 -2.01% 1.54%
compared to H2 Private sector 95,660 91,317 91,667 0.38% -4.17%
Israel and settlements 16,167 13,969 11,394 -18.44% -29.52%
2009 TOTAL 136,873 130,683 127,898 -2.13% -6.56%
After the effects of inflation, however,
commerce and restaurants, as well as
real monthly wages were down 3
Average daily transport and communications.
percent. Non-refugees suffered a
wages for In the parallel period comparison, job similar decline, but their real average
refugees in H2 losses outpaced job creation, with monthly wages were about 11.2
2010 were over refugees losing about 4,000 jobs in the percent higher than those of refugees
private sector, a decline of 4.1 in second-half 2010.
12% lower than
percent. Manufacturing accounted for
non-refugees nearly 54 percent of the net losses,
while private services made up almost NON-REFUGEE
!
40 percent of the decline. Construction
led the way in job growth for refugees,
LABOUR MARKET
! with about 950 new jobs relative to
This section examines labour market
second-half 2009.
conditions facing non-refugees in the