Policy Roundtables

Systematic Demographic Devastation and Labour Market Dynamics in the Gaza Strip: Implications in the Context of the October 2023 War

author: Palestine Economic Policy Research Institute - MAS
year: 2025

 

“Communal Coping”

The ongoing war on the Gaza Strip, waged by Israeli military forces since 7 October 2023, stands as one of the most devastating and deadliest in modern history. This escalation has inflicted unprecedented levels of devastation on the civilian population and critical infrastructure, leading to widespread displacement and loss of life. It has resulted not only in a humanitarian catastrophe but also in a systematic breakdown of the Palestinian labour economy. Even prior to this period, the Gaza Strip was grappling with long-standing vulnerabilities stemming from a prolonged blockade and conditions that have severely undermined its socio-economic resilience.1. Most economic activities in the Strip remain in total paralysis, hence, labour market dynamics have undergone profound structural distortions.2. 

The catastrophic devastation inflicted on the Gaza Strip in the aftermath of October 7th, has profoundly disfigured the population structure and shattered the labour force composition. This has manifested in a dramatic collapse in labour force participation, a severe demographic imbalance between the working-age population and dependents, and driven marginalized groups especially women, youth, and the forcibly displaced persons to the brink of survival. 

Against this backdrop, this paper seeks to examine the multifaceted repercussions of the systemic demographic collapse in the Gaza Strip marked by mass displacement, population loss, and the disintegration of family structures on labour market functionality. The analysis spans the period from October 7, 2023, to mid-May 2025, a timeline that includes the renewed escalation of hostilities in March 2025, with the toll of death and casualties escalating by the day. The study further explores how Gazans have adapted to this protracted crisis through resilience strategies and coping mechanisms, including the rise of new informal and crisis-driven professions born out of necessity and survival. Ultimately, the paper aims to offer a comprehensive understanding of how war-induced demographic devastation reverberates through the employment system in conflict-affected regions. Today, Gaza’s post-war labour market is gripped by unprecedented demographic pressures that severely complicate any path to recovery and demand urgent, focused policy intervention; an issue that constitutes the central focus of this paper.

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Systematic Demographic Devastation and Labour Market Dynamics in the Gaza Strip: Implications in the Context of the October 2023 War 2025