New UN research challenges conventional view of the West Bank economy

(JERUSALEM 06/08/2011) -- New research by the United Nations Agency for Palestine Refugees, UNRWA, released today, challenges the conventional picture of a flourishing West Bank economy. Contrary to media and other reports, the research shows that in the second half of 2010 unemployment grew much faster than employment, and the purchasing power of average working people’s wages continued to decline in the face of persistently high unemployment rates and consumer price inflation. According to the indicators, results for refugees were worse than for non-refugees in the West Bank.

(JERUSALEM 06/08/2011) -- New research by the United Nations Agency for Palestine Refugees, UNRWA, released today, challenges the conventional picture of a flourishing West Bank economy. Contrary to media and other reports, the research shows that in the second half of 2010 unemployment grew much faster than employment, and the purchasing power of average working people’s wages continued to decline in the face of persistently high unemployment rates and consumer price inflation. According to the indicators, results for refugees were worse than for non-refugees in the West Bank.

 “While there was modest employment growth, such growth was on the wane in 2010 while the number of unemployed accelerated in the second half of the year. Refugee labour force participation continued to recede, perhaps due to discouragement about job prospects, as refugee employment declined in this period,” said researcher, Salem Ajluni, author of the new research. “The average broad refugee unemployment rate rose by more than a percentage point to 27.9 pe rcent relative to first-half 2009 as compared to 24.1 per cent rate for non-refugees.” Both employed refugees and non-refugees lost an average of about 3 per cent in real value of their wages.

 “The implications of these results are profound for the refugees served by UNRWA,” said Agency spokesman, Chris Gunness. “The economic good news that the media have made much of in recent months overlooks deeper processes underway. Refugee labour market conditions in particular regressed. The occupation and its related infrastructure such as settlements and settler-only roads that encroach on and divide Palestinian land, settler violence and the West Bank Barrier have diminished prospects for Palestinians in general and especially for refugees. This is likely to raise the rate of aid dependency among refugees, placing ever greater pressures on UNRWA.

 The full report can be downloaded here.

UNRWA provides assistance, protection and advocacy for some 4.8 million registered Palestine refugees in Jordan, Lebanon, Syria and the occupied Palestinian territory, pending a solution to their plight. The Agency’s services encompass education, health care, social safety-net, camp infrastructure and improvement, community support, microfinance and emergency response, including in times of armed conflict.