Palestinian unemployment soars amid bleak economic trends: ILO report

The average Palestinian unemployment rate reached 27 percent in 2014, up from 23.4 percent a year prior, an International Labour Organization (ILO) report said Thursday.

The report, which has been published on an annual basis since 1980, indicates that as many as 338,300 Palestinians were out of work last year, compared to 270,000 in 2013.

Representing a 25.2 percent increase, the statistics highlight the negative impacts the stalled peace process, tensions and last year's war in Gaza have had on the territories.

ILO furthermore indicates that Palestinian gross domestic product (GDP) experienced its first year-on-year decline since 2006, and that in Gaza, real GDP per capita was close to 30 percent lower than in 1999.

According to the figures, Gaza's unemployment rate (43.9 percent) was more than double that of the West Bank (17.7) last year.

Obstacles to economic growth have contributed to these negative trends as stringent restrictions on the import of raw materials essential for agricultural and industrial development continue to be applied.

"Pesticides, for example, are considered dual-use products which pose a security threat, negatively impacting Palestinian agriculture," said ILO Senior Employment Policy Specialist Tariq Haq.

According to ILO, consumer imports continue to substantially outweigh Palestinian exports, further hampering economic development within the territories.

Haq told Xinhua that despite initial predictions that the situation could improve, revised forecasts have painted a far less positive outlook than originally expected. Endit