Y-NEET in Palestine

Country Overview

Palestine has one of the most constrained Labour markets in the Southern neighbourhood countries. Ongoing political instability, repeated conflicts, mobility restrictions, and slow private-sector growth have greatly hindered job creation and disrupted the transition from education to employment. These issues are reflected in persistently high NEET rates, with widening gaps between Gaza and the West Bank. Gaza’s long-standing blockade, along with repeated infrastructure destruction and economic downturns, has created labour market conditions where nearly half of young people are disconnected from work or training. The West Bank, though relatively more stable, has experienced rising NEET rates due to mobility restrictions, fragmented markets, and few formal job openings. After the war in October 2023, the labour market worsened significantly in both areas, deepening existing gaps and increasing long-term unemployment risks. In response, national partners—including the Ministry of Labour and the Palestine Employment Fund—are working to improve employment services, expand activation programmes, and align policy reforms with the regional Youth NEET initiative.

Profile and Trends of NEETs

Youth NEET levels in Palestine remain among the highest in the region, showing significant disparities based on geography, gender, and age. In 2023, NEET rates reached 45.4% in Gaza and 31.7% in the West Bank. The gap has widened steadily since 2015, reflecting Gaza’s severe socio-economic challenges. The war in late 2023 further disrupted Labour markets: nearly all youth in Gaza became unemployed or inactive, while NEET rates in the West Bank rose to 39.0% in Q4 2023, up from 29.1% the previous year. Gender disparities are particularly notable. In Gaza, 52% of young women are NEET compared to 39% of young men; in the West Bank, the gap remains substantial at 43.1% for young women versus 20.7% for young men. Women’s NEET status is mainly driven by caregiving and household responsibilities, while men’s NEET status is predominantly due to unemployment. Married women experience extremely high NEET rates (73.8%), highlighting structural barriers to participation. Age-related trends reveal deep-seated transition failures. NEET rates increase sharply from 16.2% among youth aged 15–19 to 40.6% among those aged 20–24 and 58.5% among those aged 25–29, indicating ongoing difficulties in securing employment after leaving education. Education levels also influence outcomes. Youth with the lowest educational attainment (ISCED 0–2) have NEET rates of 52.5%, but even tertiary-educated youth (ISCED 5–8) face high NEET rates (44.7%), reflecting a severe mismatch between educational attainment and Labour-market demand. Highly educated youth are more prone to be unemployed NEETs than inactive, suggesting strong aspirations but limited skilled opportunities, particularly in Gaza. Long-term unemployment is widespread. 53.8% of male unemployed NEET youth and 81.1% of female unemployed NEET youth have no prior work experience. Unemployment durations range from 3.9 months for NEET males in the West Bank to 22.7 months for NEET females in Gaza, underscoring chronic exclusion.

Main Levers and Barriers

Leveraging Palestine’s institutional framework presents various opportunities. The Ministry of Labour and PEF manage employment programmes, entrepreneurship initiatives, and activation interventions that can be expanded to reach disadvantaged youth. Public employment service (PES) offices, despite resource constraints, provide a foundation for strengthening career guidance, job matching, and outreach. A strong civil society and private-sector ecosystems also support digital-skills projects, training programmes, and youth engagement platforms. The Youth NEET Programme boosts momentum by supporting NEET measurement and diagnostic work, and capacity-building for segmentation, profiling, and outreach. However, structural barriers and Labour-Demand constraints, especially in Gaza, remain significant and restrict activation opportunities. Skills mismatches continue, and many graduates lack practical experience or relevant market skills. Mobility restrictions, gender norms, and care duties greatly limit women’s participation. Gaps in institutional capacity within PES, limited integration of NEET data into national systems, and fragmented coordination mechanisms further impede targeted service delivery.