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OCHA-oPt Socio-Economic Fact Sheet April 2008 Socio-Economic Indicators Occupied Palestinian Territory Indicator (Click on Link) Demographics Table1: Population in the occupied Palestinian territory (oPt), West Bank, Gaza Strip, and by governorates Workforce Statistics Table 2: Unemployment in the oPt, West Bank and Gaza Strip (relaxed) Table3: Unemployment in the oPt, West Bank and Gaza Strip (ILO) Table 4: Unemployment by governorate in the West Bank Table 5: Unemployment by governorate in the Gaza Strip Table 6: Employment by economic activity Table 7: Employment by status Table 8: Employment by sector Poverty Table 9: Poverty in the oPt, West Bank and Gaza Strip (income) Table 10: Poverty in the oPt, West Bank and Gaza Strip (consumption) Table 11: Poverty by gender of head of household Table 12: Poverty by source of income Food Insecurity Food Insecurity Wages Table 13: Real and nominal wages in NIS Macroeconomics Table 14: Gross Domestic Product (GDP) Table 15: PA operating budget: Sources of income Page Number 3 4 5 8 9 10 11 12 OFFICE FOR THE COORDINATION OF HUMANITARIAN AFFAIRS P.O.Box 38712, East Jerusalem, Phone: (+972) 2-582 9962 / 582 5853, Fax: (+972) 2-582 5841 • ochaopt@un.org • www.ochaopt.org OCHA Socio-Economic Fact Sheet occupied Palestinian territor y Demographics Population in the oPt, divided into West Bank, Gaza Strip and the governorates Table Population Year Bethlehem 176,515 Hebron 551,130 Jenin 256,212 2007 West Bank occupied Palestinian territory Jericho 41,724 Jerusalem 2,345,107 362,521 Nablus 321,493 Qalqiliya Ramallah 91,046 278,018 3,761,646 Salfit 59,464 Tubas 48,771 496,410 Gaza North 1,416,539 158,213 Gaza Gaza Strip Tulkarm 270,245 Khan Yunis 137,577 Deir El-Balah 103,606 Rafah 87,465 Source: Palestinian Central Bureau of Statistics (PCBS) Population, housing and establishment Census-2007 Press Conference of the Preliminary findings February 2008 Back to Table of Contents OFFICE FOR THE COORDINATION OF HUMANITARIAN AFFAIRS P.O.Box 38712, East Jerusalem, Phone: (+972) 2-582 9962 / 582 5853, Fax: (+972) 2-582 5841 • ochaopt@un.org • www.ochaopt.org OCHA Socio-Economic Fact Sheet occupied Palestinian territor y Workforce statistics Unemployment definition: 1) According to International Labour Organization (ILO) standards: unemployment captures unemployed persons who are 15 years and above, not work at all, are not absent from a job and available for work, and are actively seeking a job in the week-long period, during which the survey is carried out 2) According to the relaxed definition: unemployment adds the total number of unemployed people to the number of people currently not engaged in active job search but willing to work (known as ‘the discouraged’) a) Unemployment in the oPt, West Bank and Gaza Strip Table Table Unemployment (relaxed definition) Unemployment (ILO definition) Year oPt West Bank Gaza Strip Year oPt West Bank Gaza Strip 1999 21.7% 19.9% 26.0% 1999 11.8% 9.5% 16.9% 2000 24.9% 21.6% 32.0% 2000 14.3% 12.3% 18.9% 2001 35.9% 30.4% 47.8% 2001 25.2% 21.5% 34.2% 2002 41.2% 38.1% 48.1% 2002 31.3% 28.2% 38.0% 2003 33.4% 32.0% 36.4% 2003 25.6% 23.8% 29.2% 2004 32.5% 29.2% 39.9% 2004 26.8% 23.0% 35.4% 2005 28.9% 26.1% 35.2% 2005 23.5% 20.3% 30.3% 2006 29.6% 25.0% 39.9% 2006 23.6% 18.6% 34.8% Q1 2007 27.9% 24.3% 35.4% Q1 2007 21.6% 17.3% 30.4% Q2 2007 25.7% 22.6% 32.3% Q2 2007 19.2% 15.8% 26.4% Q3 2007 29.1% 25.2% 37.6% Q3 2007 23.2% 18.6% 32.9% Q4 2007 28.8% 25.9% 35.3% Q4 2007 22.2% 19.2% 29.0% Source: Palestinian Central Bureau of Statistics (PCBS) Various labour force surveys (LFs) Figures in red indicate higher percentages of unemployment, chosen to exceed 25% for easy reading 40% 35% 30% 25% 20% 15% 10% 5% Gaza Strip oPt West Bank 0% % Unemployment rate (ILO definition) 45% Unemployment (ILO definition) from 1999-Q4 2007 50% 45% 40% Gaza Strip oPt West Bank 35% 30% 25% 20% 15% 10% 5% 0% 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 Q 06 20 Q 07 20 Q 07 20 Q 07 20 07 50% 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 Q 06 20 Q 07 20 Q 07 20 Q 07 20 07 % Unemployment rate (relaxed definition) Unemployment (relaxed definition) from 1999-Q4 2007 Back to Table of Contents OFFICE FOR THE COORDINATION OF HUMANITARIAN AFFAIRS P.O.Box 38712, East Jerusalem, Phone: (+972) 2-582 9962 / 582 5853, Fax: (+972) 2-582 5841 • ochaopt@un.org • www.ochaopt.org OCHA Socio-Economic Fact Sheet occupied Palestinian territor y b) Unemployment by governorate (ILO definition) Unemployment in the West Ba Table Year Year Region West Bank* Q3 2000 Gaza Strip 16.2% oPt West Bank Q3 2007 Gaza Strip Q4 2007 Gaza Strip 12.3% 12.7% 16.1% 15.4% oPt 14.8% 3.7% 15.0% 15.3% 13.9% 5.5% 12.3% 4.4% 26.7% 20.6% 17.1%18.4% 19.7% 2004 18.7% 2005 11.6% 12.8% 13.9% 2002 13.2% 21.7% 2003 5.8% 15.1% 15.9% 15.9% 15.0% 12.7% oPt West Bank Bethlehem Hebron Jenin Jericho Jerusalem Nablus Q Employment by economic activity (out of total employed) 1999 12.0% 6.4% 12.5% 6.1% 9.8% 9.2% PA Agriculture, Services employees Commerce Transport / Forestry and Manufacturing Construction (including 7.3% 2000 9.7% 10.6% 16.6% PA 11.6% 11.2% / Hotels storage Fishing employees) 2001 11.5% 16.1% 37.2% 11.4% 15.2% 22.9% 11.3% 16.1% 24.2% 18.7% 5.1% 24.6% 12.8% 4.9% 22.3% 2006 20.0% 1.5% Q1 2007 19.0% 26.1% 5.8% 13.7% 5.0% 38.0% 45.1% 10.9% 28.5% 27.8% 29.5% 28.6% 35.5% 9.4% 17.4% 25.8% 22.3% 5.4% 28.6% 15.4% 21.1% 25.3% 28.7% 13.0% 22.8% 6.9% 52.2% 40.2% 13.5% 19.5% 25.3% 13.2% 35.2% 23.3%30.2% 23.2% 20.8% 16.8% 18.1% 22.3% 14.4%15.0% 13.2% 17.6% 7.9% 16.8% 16.3% 52.2% 23.5% 14.0% 41.1% 12.0% 17.6% 10.4% 200719.7% 22.1% 5.9% Q2 14.1% 36.4% 17.4% 8.3% 22.5% 13.0% 13.0% 15.9% 14.8% Source: PCBS Q3 2000, Q3&Q4 2007 labour force surveys * West Bank figures include East Jerusalem Q3 2007 16.0% 28.2% 9.9% 16.3% Source: PCBS Various labour force surveys Figures in red indicate higher percentages of unemployment, chosen to exceed 25% for easy reading Tables 2-5: Since the beginning of the second Intifada in late 2000, unemployment has fluctuated in all governorates, however, it has remained higher than before the Intifada The increase in unemployment rate in the oPt is mainly stimulated by the external and internal closure regime Israel has imposed on the oPt Table Year Unemployment in the Gaza Strip (ILO definition) Internal closures in the West Bank have caused an economic decline, contributing to an increase in unemployment rates The closures have forced transportation costs to go up and limited the access of workers to better jobs within the West Bank This has particularly affected marginalised and remote areas where unemployment is high In addition to closures, both Palestinian-Israeli violence and internal violence have created an environment discouraging investment and limiting the capacity of the local labour market to create jobs Gaza North Khan Yunis Middle Area Rafah 1999 13.3% 14.8% 19.4% 22.6% 19.2% 2000 17.5% 16.3% 20.6% 22.6% 19.5% 2001 32.4% 34.8% 36.6% 34.3% 34.5% 2002 36.1% 37.1% 38.5% 39.9% 41.2% 2003 27.8% 27.7% 32.1% 31.5% 28.2% 2004 External closures restrict the access of Palestinian workers to jobs in Israel They also cripple the economy by limiting the free flow of exports and imports, thus affecting the availablility of jobs Gaza 32.8% 36.6% 38.2% 36.9% 35.2% 2005 26.8% 33.6% 31.2% 35.1% 29.0% 2006 33.3% 39.0% 36.1% 35.0% 30.2% Q1 2007 37.9% 36.0% 40.9% 39.1% 37.3% Q2 2007 20.2% 27.5% 30.4% 33.4% 24.0% Q3 2007 28.6% 36.4% 37.8% 32.0% 31.5% Q4 2007 23.0% 32.0% 34.2% 30.8% 29.6% Source: PCBS Various labour force surveys Figures in red indicate higher percentages of unemployment, chosen to exceed 25% for easy reading Back to Table of Contents OFFICE FOR THE COORDINATION OF HUMANITARIAN AFFAIRS P.O.Box 38712, East Jerusalem, Phone: (+972) 2-582 9962 / 582 5853, Fax: (+972) 2-582 5841 • ochaopt@un.org • www.ochaopt.org OCHA Socio-Economic Fact Sheet occupied Palestinian territor y c) Employment distributed by economic activity ank (ILO definition) Table Ramallah 13.5% 5.9% Year 13.9% 11.1%Forestry and Manufacturing Construction Commerce Transport / 13.8% Region 17.7% 9.6% 18.1% 32.9% 26.2% Q3 2000 Gaza 40.7%Strip 30.9% 27.0% 25.9% oPt 29.1% 39.5% 22.7% 20.5% 23.2% 24.8% 21.9% Q3 2007 Salfit Tubas Employment by economic activity (out of total employed) Tulkarm Qalqiliya Agriculture, 16.0% West Bank* West Bank 16.1% 16.2% 20.9% 16.1% 24.9% 18.9% 20.9% 15.8% 21.3% 20.1% 21.9% West Bank 15.9% 16.5% 15.6% 16.0% 18.8% Q4 2007 Gaza Strip 16.3% 17.6% 16.2% 21.5% 19.5% 15.4% 15.1% 15.0% 13.9% 21.9% oPt 15.3% 23.2% 19.7% 20.0% 10.4% 5.0% 7.9% 19.7% 5.9% 17.4% 15.4% 52.2% 5.8% 19.0% 28.5% 28.6% 28.6% 6.9% 19.5% 1.5% 12.3% 5.4% PA employees 12.8% 38.0% 4.9% 18.7% 11.6% 13.9% 5.5% 24.6% 4.4% 17.1% 3.7% 12.8% 5.1% 13.2% 21.7% 14.8% 5.8% 22.4% 18.7% 15.9% 15.0% 12.7% 19.8% 24.2% 12.3% 12.7% 23.6% 22.2% oPt storage 16.7% 11.3% Gaza Strip / Hotels Fishing Services (including PA employees) 40.2% 35.2% 30.2% 22.3% 15.0% 52.2% 36.4% 41.1% 22.5% 22.7% Source: PCBS Q3 2000, Q3&Q4 2007 labour force surveys * West Bank figures include East Jerusalem 17.0% 19.9% 16.9% 22.3% Table 6: The most significant trend since the beginning of the second intifada has been the decrease in 15.0% 20.4% 22.5% 15.9% employment in the construction sector and the increase in employment in the service sector, particularly in the governmental sector In addition, there has been a slight drop in employment in manufacturing and an increase in employment in the agricultural and commerce sectors In the West Bank, workers have increasingly reverted to agriculture as fewer jobs are available in other sectors Family members in particular tend to engage in the olive harvest in the third quarter of each year The increase in employment in the Palestinian governmental sector is part of the PA’s policy aimed at reducing unemployment d) Employment distributed by status Table Employment by status in the oPt Wage employees (including private and public sector) Employer Unpaid family members Self-employed Q3 2000 67.6% 4.4% 9.9% 18.1% Q3 2007 59.6% 4.2% 12.7% 23.5% Q4 2007 60.5% 4.3% 11.9% 23.3% Year Source: PCBS Various labour force surveys Table 7: The reason for the main trend in the distribution of employment by status is that the number of employers and paid employees is decreasing whilst the number of self-employed and unpaid family members is increasing.This trend seems to be characterised by an increase in more traditional, family-based, low-skilled and less capital-intensive activities, such as agriculture and commerce However, this comes at the expense of higher capital-intensive activities such as industrial work Back to Table of Contents OFFICE FOR THE COORDINATION OF HUMANITARIAN AFFAIRS P.O.Box 38712, East Jerusalem, Phone: (+972) 2-582 9962 / 582 5853, Fax: (+972) 2-582 5841 • ochaopt@un.org • www.ochaopt.org OCHA Socio-Economic Fact Sheet occupied Palestinian territor y e) Employment distributed by economic sector Table Employment by sector (out of total employed) Year Region West Bank 1999 Public 12.7% Gaza Strip West Bank 2000 13.9% oPt 2001 15.7% 41.5% oPt West Bank 2002 17.4% Gaza Strip oPt West Bank 2003 15.4% Gaza Strip oPt West Bank 2004 16.0% Gaza Strip 37.1% oPt West Bank 2005 Gaza Strip oPt West Bank 2006 16.1% Gaza Strip oPt West Bank 2007 Q1 16.5% Gaza Strip 38.7% oPt West Bank 2007 Q2 16.2% Gaza Strip oPt West Bank 2007 Q3 15.4% Gaza Strip oPt West Bank 2007 Q4 15.0% Gaza Strip 41.1% oPt 22.5% 3.4% 6.1% 9.9% 13.0% 50.9% 4.2% 3.7% 0.1% 63.0% 7.4% 9.6% 13.8% 53.7% 4.7% 3.8% 0.0% 62.4% 7.6% 9.8% 11.9% 56.0% 4.9% 3.8% 0.0% 64.6% 7.9% 8.5% 12.9% 51.8% 5.0% 3.7% 0.0% 63.5% 67.2% 4.4% 0.4% 63.7% 22.3% 6.1% 13.7% 68.0% 40.2% 3.8% 8.7% 55.5% 21.9% 4.4% 1.1% 65.1% 68.0% 36.1% 4.9% 9.7% 55.7% 22.9% 4.2% 11.5% 65.9% 4.9% 3.1% 65.9% 22.8% 6.4% 12.5% 67.2% 41.5% 4.3% 10.3% 61.3% 22.2% 4.2% 2.5% 62.0% 66.9% 38.0% 6.7% 13.8% 54.3% 21.8% 15.9% 3.4% 13.3% 68.7% 3.4% 1.9% 59.7% 20.1% 4.9% 17.9% 67.9% 30.6% 2.8% 19.5% 50.0% 22.8% 3.4% 12.7% 58.2% 64.9% 36.8% 4.5% 22.9% 51.0% 22.3% 3.0% 22.2% 63.0% Other sectors 15.7% 56.8% 18.9% Gaza Strip 25.8% 61.1% 31.4% Israel and the settlements 52.5% 16.9% Gaza Strip West Bank 58.5% 27.3% oPt Private 8.0% 9.3% 14.1% 53.2% 63.2% 4.9% 3.7% 0.0% 5.7% 4.3% 10.0% Source: PCBS Various labour force surveys * All West Bank figures include East Jerusalem Back to Table of Contents OFFICE FOR THE COORDINATION OF HUMANITARIAN AFFAIRS P.O.Box 38712, East Jerusalem, Phone: (+972) 2-582 9962 / 582 5853, Fax: (+972) 2-582 5841 • ochaopt@un.org • www.ochaopt.org OCHA Socio-Economic Fact Sheet 100% Private Employment by sector in the Gaza Strip (out of total employed) 90% Israel and the settlements Public Privatesectors Other Israel and the settlements 100% 80% Employment by sector in the Gaza Strip (out of total employed) 90% 70% Public 80% 60% 100% Other sectors Private Employment by sector in the Gaza Strip (out of total employed) 70% 50% 90% Israel and the settlements Public 60% 40% 80% Other sectors 50% 30% 70% 40% 20% 60% 30% 10% 50% 90% 0% Q 20 07 Q Q 20 07 Q Israel and the settlements (incl East Jerusalem) (out of total employed) Employment by sector in the West Bank Q 20 07 20 07 Q Q 20 07 Q 20 07 20 06 20 05 20 04 20 03 Public 20 02 Israel and the settlements (out of total employed) 60% 40% 80% Other sectors Private (incl East Jerusalem) 70% 50% 90% Public Employment by sector in the West Bank 80% 60% 100% 20 01 (incl East Jerusalem) (out of total employed) 90% 70% Public Privatesectors Other Israel and the settlements 20 00 100% 80% 20 07 Private Employment sector in the West Bank Employment by economic by sector in the WestBank from 1999-Q4 2007 20 07 Q 20 07 20 06 20 06 Q 20 05 20 05 Q 20 04 20 04 20 07 20 03 20 03 20 07 20 02 20 02 100% 10% Q 20 01 20 01 0% 20% 20 07 20 00 20 00 10% 30% 19 99 20% 0% 40% 19 99 Private employment in the West Bank has surged, which is mainly due to the increase in employment in the agricultural sector Private employment in the Gaza Strip hardly increased due to the severity of the external closures imposed on imports and exports, which have tightened further since June 2007 Employment by economic sector in the Gaza Strip from 1999-Q4 2007 19 99 Table 8: Since the beginning of the second Intifada, the percentage of those employed in the public and private sectors has increased, out of those total employed in the oPt, whilst the percentage of those employed in Israel and the settlements has dropped substantially occupied Palestinian territor y Other sectors 50% 30% 70% 40% 20% 60% 30% 10% 50% 80% 60% 100% 60% 40% 80% Q 20 07 Q Q 20 07 20 07 20 07 Q Q Q 20 06 20 06 20 07 20 05 20 05 Private Q 20 07 Q Q Public Privatesectors Other Israel and the settlements 20 07 1999-Q4 2007 20 07 Q 20 07 20 06 20 05 Israel and the settlements Public Other sectors Private Employment by sector in the occupied Palestinian territory (out of total employed) 70% 50% 90% 20 07 20 04 20 04 20 04 Q 20 03 20 03 20 03 20 07 20 02 20 02 Q 20 01 20 01 20 02 Employment 90% 70% Employment by sector in the occupied Palestinian territory (out of total employed) Employment by economic by sector the oPt from sector in in the occupied Palestinian territory (out of total employed) 20 01 100% 80% 19 99 90% 0% 20 00 100% 10% 19 99 0% 20% 20 07 20 00 20 00 10% 30% 19 99 20% 0% 40% Israel and the settlements Public Other sectors 50% 30% 70% 40% 20% 60% 30% 10% 50% Q Q 20 07 Q 20 07 Q 20 07 20 07 Q 20 06 20 06 20 07 20 05 20 05 Q 20 04 20 04 20 07 20 03 20 03 Q 20 02 20 02 20 07 20 01 20 01 Q 20 00 20 00 10% 19 99 19 99 0% 20% 20 07 20 06 20 05 20 04 20 03 20 02 20 01 20 00 10% 30% 19 99 20% 0% 40% Q 20 07 Q 20 07 Q 20 07 20 07 Q 0% Back to Table of Contents OFFICE FOR THE COORDINATION OF HUMANITARIAN AFFAIRS P.O.Box 38712, East Jerusalem, Phone: (+972) 2-582 9962 / 582 5853, Fax: (+972) 2-582 5841 • ochaopt@un.org • www.ochaopt.org OCHA Socio-Economic Fact Sheet occupied Palestinian territor y Poverty Poverty definition: The PCBS has developed two poverty lines according to the actual spending patterns of a Palestinian average household of six individuals The first line is the “absolute (deep) poverty line” that reflects a budget for food, clothing and housing The second line is the “relative poverty line” that adds other necessities such as health care, education, transportation, personal care (i.e cosmetics, hairdresser and other hygiene personal items) and housekeeping supplies (i.e hygiene domestic items and cooking utensils) In 2006, the relative poverty line and the absolute poverty line for the average household in the oPt stood at a monthly income of less than 2,300 NIS (USD 518) and 1,837 NIS (USD 414) respectively a) Poverty rates in the oPt, West Bank and Gaza Strip Table rates 3-Poverty Poverty (income-based) Area Type of poverty Poverty West Bank West BankNorth West BankMiddle West BankSouth Deep poverty Poverty Deep poverty Poverty Deep poverty Poverty Deep poverty Poverty Gaza Strip Deep poverty Poverty oPt Deep poverty 2001 2004 35.5% 48.0% 28.8% 43.4% 20.6% 41.8% 33.6% 64.7% 45.0% 37.9% 28.6% 36.4% n/a n/a n/a 24.7% 56.5% n/a n/a 41.1% 63.1% 53.9% 53.7% 49.1% 37.6% 51.8% 65.0% 56.5% 51.6% 23.1% 59.3% 2006 34.5% 44.3% 29.6% 16.3% 45.7% 39.7% 54.6% 35.8% 2005 51.6% 51.5% 44.4% 40.2% n/a 79.3% 66.7% 56.8% 44.1% Source: PCBS, Poverty data, sent by PCBS upon request from OCHA Table 10 Poverty (consumption-based) Area Type of poverty Poverty West Bank West BankNorth West BankMiddle West BankSouth Poverty 8.4% 18.3% Deep poverty Poverty Deep poverty Poverty Deep poverty Deep poverty Poverty oPt 14.5% Deep poverty Poverty Gaza Strip 1998 Deep poverty 9.9% 6.9% 2001 16.2% 14.5% 18.4% 18.3% 9.3% 4.6% 20.4% 12.2% 33.0% 21.6% 20.3% 12.5% 2004 30.9% 20.3% 22.2% 11.7% 6.7% 6.9% 23.5% 20.4% 41.9% 33.0% 23.6% 20.3% 19.8% 31.2% 20.6% 44.7% 32.2% 35.5% 24.3% 2006 24.0% 11.6% 22.5% 13.0% n/a 12.4% 11.0% 3.7% Source: PCBS, Poverty data, sent by PCBS upon OCHA's request 2005 n/a n/a 6.7% 34.9% n/a n/a 21.4% 37.2% 26.0% 25.6% 16.4% n/a 50.7% 34.8% 36.9% 18.5% Back to Table of Contents OFFICE FOR THE COORDINATION OF HUMANITARIAN AFFAIRS P.O.Box 38712, East Jerusalem, Phone: (+972) 2-582 9962 / 582 5853, Fax: (+972) 2-582 5841 • ochaopt@un.org • www.ochaopt.org OCHA Socio-Economic Fact Sheet C- Poverty and female-headed households (2006): Female-headed households 65.2% 7.8% occupied Palestinian territor y Source: PCBS Poverty in the oPt, 2006 Main findings reports August 2006 Female-headed households constitute about 7.8% of the Palestinian b) Poverty HH Although this group is head of the household1 rates by gender of the one of the highest recipients of public support and assistance, the following table shows that the female-headed HHs are more likely to be poor than 11 Tablethe male-headed ones: Poverty (by gender of household head) in 2006 Type of household Poverty rate Male-headed households 56.0% Female-headed households 65.2% % of total households Households that depend on public salaries are less likely to suffer 12 Table poverty compared to the other HH (2006) Poverty (by source household income) in 2006 Source of income Poverty rate 92.2% Agriculture 7.8% Source: PCBS Poverty in the oPt, 2006 Main findings reports August 2006 D- Poverty and main source income: Table 11: Female-headedofhouseholds constitute 7.8% of Households that depend on public salaries this group is all Palestinian households Althoughare less likely to one of suffer poverty compared to the other HH (2006) the highest recipients of public support and assistance, Poverty among these households is higher than among poverty (by source household income) in 2006 households headed by a male This phenomenon is linked to Source of that in female-headed households, there is only the fact Poverty rate income one parent and the care of children is usually carried out at the expense of income generation Agriculture c) Poverty ratesmainmain source of income2 D- Poverty and by source of income: 77.6% Table 12: Households that depend on public salaries are Salaries from 40.7% among those less likely to suffer from poverty than other Israel households Salaries from public sector 52.1% Salaries from private sector 62.1% Income from transfers/aid 74.4% Other HH business 47.7% Other resources 39.6% Source: PCBS Poverty in the oPt, 2006 Main findings reports August 2006 47.7% Other resources Salaries from public sector 74.4% Other HH business 40.7% 62.1% Income from transfers/aid Salaries from Israel 52.1% Salaries from private sector 77.6% 39.6% Foodreports August 2006 findings insecurity Source: PCBS Poverty in the oPt, 2006 Main Food security definition: Food security means having access to sufficient, safe and nutritious food to meet dietary needs and lead an active and healthy life at all times In 2006, an estimated 34%, or about 1,300,000, of the Palestinian population, was reported to be food insecure An additional 12% were estimated to be vulnerable to becoming food insecure Back to Table of Contents OFFICE FOR THE COORDINATION OF HUMANITARIAN AFFAIRS P.O.Box 38712, East Jerusalem, Phone: (+972) 2-582 9962 / 582 5853, Fax: (+972) 2-582 5841 • ochaopt@un.org • www.ochaopt.org OCHA Socio-Economic Fact Sheet occupied Palestinian territor y Wages Real and nominal wages definition: Real wages are wages adjusted for inflation and show the monetary value of wages in a certain year known as the base year (Base Year: 1996) Nominal wages are the money value of wages in different years Table 13 Wages and income in NIS Year Area West Bank* Q3 2000 Average daily nominal wage 70 Gaza Strip 1708 50 Israel and the settlements West Bank* Q3 2007 Average monthly nominal wage 57 1194 111 77 Gaza Strip Israel and the settlements Average daily real wage 2249 828 90 49 1436 132 1367 41 1696 64 Average monthly real wage 975 44 2678 1807 877 84 1682 Source: PCBS Various labour force surveys Real wages are calculated by OCHA * West Bank figures include East Jerusalem Table 13: Although there has been an increase in nominal wages since the beginning of the second intifada, it was actually offset by the price increases, which have taken place since the beginning of the Intifada and surged in 2007 For this reason, real daily wages have decreased Wages in the Gaza Strip are lower than those of the West Bank due to: a) high participation rate of population in labour market as a result of the high population growth rate and the loss of jobs in Israel, b) limited capacity of the Gazan labour market to create new jobs due to closures Back to Table of Contents OFFICE FOR THE COORDINATION OF HUMANITARIAN AFFAIRS P.O.Box 38712, East Jerusalem, Phone: (+972) 2-582 9962 / 582 5853, Fax: (+972) 2-582 5841 • ochaopt@un.org • www.ochaopt.org 10 OCHA Socio-Economic Fact Sheet occupied Palestinian territor y Macroeconomics Real Gross Domestic Product (GDP) definition: The real GDP, which uses constant prices,4 measures the value of goods and services produced in a certain year 7- Macroeconomic data: A- Gross Domestic Product (GDP): Table 14 GDP of the oPt in constant prices [USD million] Real GDP growth GDP per capita in USD Real GDP per capita growth 1999 4,896 8.9% 7- Macroeconomic1,622 data: A- Gross Domestic Product (GDP): -5.5% 1,469 4.4% 2000 4,627 2001 3,906 2002 3,540 2003 3,744 5.8% 1999 1,065 4,896 2.1% 2004 3,970 6.0% 2000 1,091 4,627 2.5% 2005 4,210 6.0% 2001 1,119 3,906 2006 3,873 -8.0% 2002 n.a 3,540 -10.9% -9.4% -9.4% -15.6% 1,193 GDP of the oPt in constant prices [USD million] -9.4% 1,043 -18.8% 2005 8.9% 1,622 4.4% -5.5% 1,469 -9.4% 1,193 -18.8% 1,043 -12.6% 5.8% 1,065 2.1% 6.0% 1,091 2.5% 1,119 2.5% 6,000 Real GDP [$ million] 3,970 8.9% 6.0% 3,744 2004 Real GDP growth 0.15 0.1 2003 Real GDP per capita growth 2.5% -15.6% Source: Figures obtained upon request from IMF.(International Monetary Fund) 0.2 GDP per capita in USD Real GDP growth -12.6% 5,000 4,210 6.0% 6.0% -10.9% -0.2 1999 2000 2001 2002 2003 2004 Real GDP per capita declined by 40% in -0.05 2006 compared The real GDP per capita growth rates arePCBS rates Preliminary annual growth -0.1 Note: to 1999 results show that the economy recovered slightly in the second half of 2007, however, -0.15 GDP per capita declined by about 5% in 2007 -0.2 compared with 2006 1999 GDP of the oPt in constant prices [$ million] 2005 6,000 Real GDP [$ million] Real GDP growth 2006 3,873 4,000 -8.0% Table 14:The Gross Domestic Product (GDP) Real GDP in $million and real GDP growth 1999-2006 n.a 0.05 has decreased since the beginning of the 5.8% 0.2 3,000 second Intifada, with GDP levels remaining well below the pre-intifada ones The GDP is 0.15 -0.05 -5.5% 2,000 estimated at $4,107 million in 2006 compared -8.0% 0.1 8.9% -9.4% 6.0% -0.1 to $4,511.7 million in 1999 A significant 1,000 decline took place in 2001 and 2002, however, 0.05 5.8% -0.15 it improved in the subsequent-15.6% years 5,000 6.0% 4,000 3,000 2006 Real GDP growth -5.5% 2,000 -8.0% -9.4% 1,000 -15.6% 2000 2001 2002 GDP of the oPt in constant prices [$ million] 2003 2004 2005 2006 Real GDP growth The decline in GDP was influenced by the Note: The real GDP per capita growth rates are annual growth rates following: the reduction in the expenditure of Palestinian households, the lack of investment and security due to closures, the reduced government expenditure including the non-payment of PA salaries and the prolonged domination of imports over exports in the Palestinian economy Back to Table of Contents OFFICE FOR THE COORDINATION OF HUMANITARIAN AFFAIRS P.O.Box 38712, East Jerusalem, Phone: (+972) 2-582 9962 / 582 5853, Fax: (+972) 2-582 5841 • ochaopt@un.org • www.ochaopt.org 11 OCHA Socio-Economic Fact Sheet occupied Palestinian territor y PA operating budget The PA operating budget in total and percentages Table 15 PA operating Budget Year USD million Year 2005 USD million USD million % USD million USD million 2005 2006 Clearance revenues collected by GoI Clearance 894 revenues collected by GoI 40.71% 894 2006 USD million 2007 Budget collected taxes 21.68% 26.34% 50.73% 738 349 2,196 1,435 15.89% -1.74% 51.43% -25 336 23.97% 477 21.72% 378 1280 % -25 21.68% 23.97% 344 % Total other fincancing, incl 477 349External finance for Palestinian Investment 2,196 TOTAL budgetary support Fund Dividend 21.72% 15.89% 378 40.71% % USD million 476 Locally- 476 344 % LocallyTotal other fincancing, incl External finance for collected Palestinian Investment TOTAL budgetary support PA taxes operating Budget Fund Dividend 738 26.34% 1,435 907 -1.74% 13.32% 0.00% 51.43% 2,523 35.95% USD million million USD USD million 1280 336 907 2007 Source: IMF Mid-Term Macroeconomic and Fiscal Framework for the West Bank and Gaza Strip Report for the Donors' Conference December Budget 17, 2007 % 50.73% 13.32% 0.00% 35.95% 2,523 3000 Source: IMF Mid-Term Macroeconomic and Fiscal Framework for the West Bank and Gaza Strip Report for the Donors' Conference December 17, 2007 PA operating budget 2005-2007 3000 2500 2500 2000 2000 1500 1500 1000 1000 500 500 02005 2006 2005 External finance for budgetary support 2007 Budget 2006 External finance for budgetary support Total other fincancing, incl Palestinian Investment Fund Dividend Total other fincancing, incl Palestinian Investment Fund Dividend 2007 Budget Clearance revenues collected by GoI Clearance revenues collected by GoI Locally-collected taxes Locally-collected taxes Table 15: Compared to previous years the PA budget dropped significantly in 2006, as a result of the financial sanctions Israel and the international donor community imposed on the Hamas-led government following the January 2006 elections The clearance revenues (including VAT and customs) budget item collected monthly by the Government of Israel on behalf of the PA, constitute the largest component in the PA budget, making about 50% of the budget, when transferred monthly Back to Table of Contents OFFICE FOR THE COORDINATION OF HUMANITARIAN AFFAIRS P.O.Box 38712, East Jerusalem, Phone: (+972) 2-582 9962 / 582 5853, Fax: (+972) 2-582 5841 • ochaopt@un.org • www.ochaopt.org 12 OCHA Socio-Economic Fact Sheet occupied Palestinian territor y End Notes Figures are available only for 2006 Figures are available only for 2006 For more information, please visit the following webpage which includes a report prepared by WFP and FAO on the Comprehensive Food Security and Vulnerability Assessment (CFSVA) in 2006: http://www.wfp.org/policies/Introduction/other/Documents/pdf/CJFSVA_21_Feb.pdf Constant prices are prices fixed for a specific year, called the “base year”, against which other years are compared For the oPt, PCBS determined the constant prices in 1997 International Monetary Fund (IMF) Fiscal performance in 2006 March 2007 External finance for budgetary support includes aid from Arab countries and other countries to the PA to finance recurrent expenditures- staff wages and operating costs Back to Table of Contents OFFICE FOR THE COORDINATION OF HUMANITARIAN AFFAIRS P.O.Box 38712, East Jerusalem, Phone: (+972) 2-582 9962 / 582 5853, Fax: (+972) 2-582 5841 • ochaopt@un.org • www.ochaopt.org 13 ... OCHA Socio-Economic Fact Sheet occupied Palestinian territor y c) Employment distributed by economic activity ank (ILO definition) Table Ramallah 13.5% 5.9% Year 13.9% 11.1%Forestry and Manufacturing... 2-582 9962 / 582 5853, Fax: (+972) 2-582 5841 • ochaopt@un.org • www.ochaopt.org OCHA Socio-Economic Fact Sheet occupied Palestinian territor y Workforce statistics Unemployment definition: 1)... 2-582 9962 / 582 5853, Fax: (+972) 2-582 5841 • ochaopt@un.org • www.ochaopt.org OCHA Socio-Economic Fact Sheet occupied Palestinian territor y b) Unemployment by governorate (ILO definition)