Press Release on Labour Force Survey Results
(April – June, 2002) Round
366,000 Unemployed persons during the 2^nd quarter 2002

This report is based on the Labour Force quarterly Survey. Data was collected for the 25^rd round from 03/04/2002 to 04/07/2002, representing the second quarter of 2002.

The survey sample of this round is based on the 1997 census, 7,559 households were selected to represent the Palestinian society of which 4,508 households were completed because of Israeli closure and incursion of the Palestinian Territory.

Economically Active:

According to the ILO standards, the number of participants in labour force decreased by 55 thousand persons between the 3^rd quarter 2000 and the 2^nd quarter 2002. Where it decreased from 735 thousand in the 3^rd quarter 2000 to 705 thousand in the 1^st quarter 2002, to 680 thousand in the 2^nd quarter 2002.

Number of persons who do not work and do not seek job for being discouraged increased by 47.3% between the 3^rdquarter 2000 and the 2^nd quarter 2002; (44 thousand persons). They were 93 thousand in the 3^rd quarter 2000, increased to 111 thousand in the 1^st quarter 2002, to reach 137 thousand in the 2^nd quarter 2002.

Unemployed Persons:

Number of persons who don't work nevertheless seeking or not seeking job, increased from 170 thousand in the 3rd quarter 2000 to 315 thousand in the 1st quarter 2002, to reach 366 thousand in the 2nd quarter 2002. This represents 44.7% of the total labour force, according to the relaxed definition of unemployment.

While those who don't work, but seeking job, in the 2nd quarter 2002 reached 229 thousand which represent 33.6% of the total labour force according to the ILO standards, compared with 28.9% in the 1st quarter 2002 and 10.0% in the 3rd quarter 2000 (before the beginning of Al-Aqsa Intifada).

Employed Persons:

The results showed sharp increase in the percentage of persons who are absent from their work, 12.6% in the 2nd quarter 2002 compared with 2.6% in the 2nd quarter 2000, (before the beginning of Al-Aqsa Intifada), the major reasons for the high percentage (93.2%) of being absent were the Israeli closure and the curfew which was imposed on the Palestinian Territory during this quarter.

There is an increase of those working in services and other branches (37.9% in the2nd quarter 2002 compared with 35.1% in the 1st quarter 2002, and 28.6% in the 3rd quarter 2000). The results showed a sharp increase in the percentage of those working in services and other branches[1] in Gaza Strip, (38.0% in the 3rd quarter 2000 to 49.9% in the 2nd quarter 2002 compared with 45.2% in the 1st quarter 2002), also it increased in the West Bank from 24.6% in the 3rd quarter 2000 to 32.7% in the 2nd quarter 2002, compared with 31.4% in the 1st quarter 2001.

Employment in construction[2] dropped sharply in Gaza Strip from 15.9% in the 3rd quarter 2000 to 4.8% in the 1st quarter 2002, to decreased further to 3.4% in the 2nd quarter 2002. Whereas it decreased in the West Bank from 24.2% in the 3rd quarter 2000 to 10.7% in the 2nd quarter 2002, while the percentage was 13.6% in the 1st quarter 2002.

The results showed a decrease in the percentage of wage employees in the West Bank (66.2% in the 3rd quarter 2000 to 58.6% in the 1st quarter 2002 to reach 56.4% in the 2nd quarter 2002). Also, in Gaza Strip, it decreased from 71.0% in the 3rd quarter 2000 to reach 61.8% in the 2nd quarter 2002 compared with 60.3% in 1st quarter 2002 .

Working Hours:

Before the beginning of Alaqsa intifada and during the school time working hours for all employed persons was 9.1 million working hours per month (2nd quarter 2000), working hours increased in the Summer holiday (3rd quarter 2000) to reach 9.3. While it decreased to 6.2 million in the 4th quarter 2000 (1st quarter of Al-Aqsa intifada), then increased slightly in the first quarter 2002 to reached 6.6 million in per month, then decreased to 5.1 million working hours in the 2nd quarter 2002. That is to say; the per month working hours decreased by 45.5%.

Wages:

The average value of the nominal daily net wage of the employees in Gaza Strip increased from 50.4 NIS in the 3rd quarter of 2000 to 54.9 NIS in the 2nd quarter 2002, compared with 52.8 NIS in the 1st quarter 2002. The Average daily net wage for those working in Israel and settlements increased 110.8 NIS in the 3rd quarter 2000 to 112.8 NIS in the 2nd quarter 2002, while it was 114.0 NIS in the 1st quarter 2002.

Dependency Ratio and Poverty:

The economic dependency ratio[3] increased in the Palestinian Territory from 4.8 in the 3rd quarter 2000 to 7.6 in the 2nd quarter 2002 (the change rate is 58.3%). Whereas, it increased in the West Bank from 4.3 to 6.9 (the change rate is 60.5%) and in Gaza Strip increased from 6.0 to 9.4 (the change rate is 56.7%). The ratio in the West Bank reached 6.0 compared with 8.8 in Gaza Strip in the 1st quarter 2002.

The percentage of employees whose monthly wages below poverty line equivalent for the year 2001 (1642 NIS, for household composed of two adults and 4 children) increased from 43.5% in the 3rd quarter 2000 to 54.2% in the 1st quarter 2002 (the change rate is 36.1%). Compared with the 2nd quarter 2002, the results showed an increase of 59.2%.

[1] Workers in Israel and Settlements are not included.

[2] Workers in Israel and Settlements are excluded.

[3] The economic dependency ratio: Number of population divided by Number of employed persons.

Main Findings
According to the Relaxed Definition of Unemployment
(April - June, 2002) Round

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The Distribution of Persons Aged 15 Years and Over in the Palestinian Territory by Labour Force Components and Region (Relaxed Definition) is as follows:

Region	Labour Force		Outside Labour Force		Total
Region	Number	Percent	Number	Percent	Number	Percent
West Bank	552,000	45.5	661,000	54.5	1,213,000	100
Gaza Strip	265,000	42.0	366,000	58.0	631,000	100
Palestinian Territory	817,000	44.3	1,027,000	55.7	1,844,000	100

The Distribution of Labour Force Participants Aged 15 Years and Over in the Palestinian Territory by Labour Force Components and Region (Relaxed Definition) is as follows:

Region	Full Employment		Underemployment		Unemployment		Total
Region	Number	(%)	Number	(%)	Number	(%)	Number	(%)
North West Bank	87,000	52.8	8,000	4.7	70,000	42.5	165,000	100
Center West Bank	100,000	56.7	2,000	1.3	74,000	42.0	176,000	100
South West Bank	115,000	54.4	6,000	3.1	90,000	42.5	211,000	100
West Bank	302,000	54.6	16,000	3.0	234,000	42.4	552,000	100
Gaza Strip	126,000	47.7	7,000	2.7	132,000	49.6	265,000	100
Palestinian Territory	428,000	52.4	23,000	2.9	366,000	44.7	817,000	100

Main Findings: According to the ILO Standards

(April - June, 2002) Round

3-1 Population aged 15 years and over

The percentage of the population aged 15 years and over is 53.4% at the 2^nd Quarter of 2002.

The Distribution of Persons Aged 15 Years and Over in the Palestinian Territory by Labour Force Components and Region (ILO Standards) is as follows:

Region	Labour Force		Outside Labour Force		Total
Region	Number	Percent	Number	Percent	Number	Percent
West Bank	452,000	37.3	761,000	62.7	1,213,000	100
Gaza Strip	228,000	36.2	403,000	63.8	631,000	100
Palestinian Territory	680,000	36.9	1,164,000	63.1	1,844,000	100

3-2 Labour Force (According to the ILO Standards):

The labour force participation rate reached 36.9% in the Palestinian Territory, 37.3 % in the West Bank and 36.2% in Gaza Strip.

The Distribution of Labour Force Participants Aged 15 Years and Over in the Palestinian Territory by Labour Force Components and Region (ILO Standards) is as follows (%):

Region	Full Employment	Underemployment	Unemployment	Total
West Bank	66.7	3.6	29.7	100
Gaza Strip	55.5	3.1	41.4	100
Palestinian Territory	62.9	3.5	33.6	100

3-3 Employment (According to the ILO Standards):

Employed Persons Aged 15 Years and Over in the Palestinian Territory are Distributed by Employment Status (ILO Standards) as follows (%):

Employment Status	West Bank	Gaza Strip	Palestinian Territory
Employer	3.6	2.6	3.3
Self Employed	29.1	23.1	27.3
Wage Employee	56.4	61.8	58.0
Unpaid Family Member	10.9	12.5	11.4
Total	100	100	100

Employed Persons Aged 15 Years and Over in the Palestinian Territory are Distributed by Economic Activity and Place of work (ILO Standards) as Follows (%):

Economic Activity	West Bank	Gaza Strip	Israel and Settlements	Total
Agriculture, fishing and forestry	14.9	21.8	13.1	16.7
Mining, quarrying and manufacturing	14.2	5.7	19.6	12.1
Construction	7.9	3.0	36.3	8.5
Commerce, restaurants and hotels	20.7	14.0	17.8	18.6
Transportation, storage and communication	7.3	5.0	1.4	6.2
Services and other branches	35.0	50.5	11.8	37.9
Total	100	100	100	100

Employed Persons Aged 15 Years and Over in the Palestinian Territory are Distributed by Place of Work and Region (ILO Standards) as follows (%):

Place of Work West Bank
Gaza Strip
Total

Number

(1000

(%)

Number

(1000

(%)

Number

(1000

(%)

Palestinian Territory
287,000
90.4 131,000 98.3 418,000
92.7

Israel and Settlements (Person who have Palestinian Identity)

16,000
5.0 2,000 1.7 18,000
4.0

Israel and Settlements (Person who have Israeli Identity or foreign passport)

15,000
4.6 - - 15,000
3.3

Total

318,000
100 133,000 100 451,000
100

Note: (-) means there are no enough observations in this section.
Work days, hours and wages

The average weekly work hours, average monthly work days and average daily wage per employee aged 15 years and over according to Place of Work are as follows:

Indicator

West Bank

Gaza Strip

Israel and Settlements

Average weekly work hours

41.7

39.6

45.1

Average monthly work days*

22.5

24.4

21.8

Median daily net wage in NIS

57.7

50.0

100.0

Average daily net wage in NIS

68.7

54.9

112.8

*: Including paid days that have been not worked
Unemployment (According to the ILO Standards):
Unemployment rate for persons aged 15 years and over in the Palestinian Territory reached 33.6%; 29.7% in the West Bank and 41.4% in Gaza Strip. Unemployment Rate for Persons Aged 15 Years and Over in the Palestinian Territory by Age and Sex (ILO Standards) (%):

Age

Males

Females

Total

15-19

50.7

32.7

50.3

20-24

42.7

29.8

40.7

25-29

37.1

20.8

34.5

30-34

37.3

15.0

34.5

35-39

36.5

10.0

33.0

40-44

32.6

2.5

28.9

45-49

31.5

5.5

28.0

50+

22.9

1.9

19.8

Overall Average

36.5

15.1

33.6

Unemployment Rate for Persons Aged 15 Years and Over in the Palestinian Territory by Age and Region (ILO Standards) (%):

Age

West Bank

Gaza Strip

Total

15-19

46.6

58.8

50.3

20-24

35.8

49.9

40.7

25-29

30.9

41.6

34.5

30-34

32.2

39.0

34.5

35-39

26.5

44.5

33.0

40-44

25.3

35.9

28.9

45-49

24.0

35.9

28.0

50+

17.1

25.8

19.8

Overall Average

29.7

41.4

33.6

Unemployment Rate for Persons Aged 15 Years and Over in the Palestinian Territory by Years of Schooling and Sex (ILO Standards) (%):

Years of Schooling

Males

Females

Total

0

27.5

-

15.6

1-6

44.2

4.8

40.5

7-9

44.0

6.8

41.8

10-12

36.5

9.8

34.4

13+

20.2

24.2

21.3

Overall Average

36.5

15.1

33.6

Note: (-) means there are no enough observations in this section.
Unemployment Rate for Persons Aged 15 Years and Over in the Palestinian Territory by Years of Schooling and Region (ILO Standards) (%):

Years of schooling

West Bank

Gaza Strip

Total

0

11.0

26.0

15.6

1-6

33.5

53.7

40.5

7-9

38.6

49.9

41.8

10-12

31.8

39.4

34.4

13+

15.9

30.2

21.3

Overall Average

29.7

41.4

33.6

3-5 Persons outside the labour force (ILO Standards):

The percentage of persons aged 15 years and over outside the labour force in the Palestinian Territory reached 63.1%; 62.7% in the West Bank and 63.8% in Gaza Strip.

Persons Aged 15 Years and Over Outside the Labour Force in the Palestinian Territory are Distributed by Reason and Region (ILO Standards) as follows (%):

Reason

West Bank

Gaza Strip

Palestinian Territory

Old/illness

8.2

8.3

8.2

Housekeeping

51.7

52.1

51.8

Studying or training

27.1

30.3

28.2

Others

13.0

9.3

11.8

Total

100

100

100

3-6 Labour Force Status: Further details (ILO Standards):

Persons aged (15 years and over) are distributed according to ILO standards of labour force by sex, region and labour force status as follows:

Region and

Sex
Employed

(%)
Under-employed

(%)
Unemployed

(%)
Total

(%)
Labour

Force

(%)
Outside

Labour Force

(%)

West Bank

Males

62.9

4.0

33.1

100

63.6

36.4

Females

89.3

1.6

9.1

100

10.6

89.4

Total

66.7

3.6

29.7

100

37.3

62.7

Gaza Strip

Males

53.7

3.3

43.0

100

63.5

36.5

Females

68.3

2.2

29.5

100

8.6

91.4

Total

55.5

3.1

41.4

100

36.2

63.8

3-7 Children 10-14 years (According to the ILO Standards):

The Distribution of Children 10-14 Years in the Palestinian Territory by Labour Force Components and Region (ILO Standards) is as follows (%):

Region
Labour

Force
Outside

Labour Force

Total

Number

Percent

Number

Percent

Number

Percent

West Bank

922

0.3

271,862

99.7

272,784

100

Gaza Strip

304

0.2

172,510

99.8

172,814

100

Palestinian Territory

1,226

0.3

444,372

99.7

445,598

100

Population 15 Years and Over by Region and Labor Force Status

April- June, 2002 (ILO Standards):

Labour Force Status
West Bank

(%)
Gaza Strip

(%)
Palestinian Territory

(%)

Both Sexes

Population aged 15 years and over ( Man Power)

55.3

50.1

53.4

        Full employment (working full time: 35 hours and over)

24.9

20.1

23.2

        Working less than usual (lack of employment)

0.6

0.5

0.6

        Working in poor conditor for insufficient income

0.8

0.7

0.7

        Did not work and seeking job

11.1

15.0

12.4

        Did not work and did not seek job due to discouragement

8.2

5.9

7.4

        Did not work – Old or illness

5.1

5.3

5.2

        Did not work – Home duties

32.4

33.3

32.7

        Did not work – Students

17.0

19.3

17.8

Population less than 15 years

44.7

49.9

46.6

Total Population

100

100

100

Males

Population aged 15 years and over ( Man Power)

55.1

50.0

53.2

        Full employment (working full time: 35 hours and over)

46.5

34.1

40.0

        Working less than usual (lack of employment)

1.2

0.8

1.1

        Working in poor conditions or for insufficient income

1.8

1.3

1.4

        Did not work and seeking job

19.5

27.3

21.0

        Did not work and did not seek job due to discouragement

14.9

10.6

13.4

        Did not work – Old or illness

5.7

5.0

5.4

        Did not work – Home duties

0.3

0.3

0.3

        Did not work – Students

14.9

19.8

16.6

Population less than 15 years

44.9

50.0

46.8

Total Population

100

100

100

The following table presents the estimated absolute number of population in the working age by activity status.
Population 15 Years and Over by Region and Labour Force Status

April- June, 2002 (ILO Standards):

Labour Force Status
West Bank

#
Gaza Strip

#
Palestinian Territory

#

Both Sexes

Population aged 15 years and over ( Man Power)

1,213,000

631,000

1,844,000

          Full employment (working full time: 35 hours and over)

302,000

126,000

428,000

          Working less than usual (lack of employment)

7,000

3,000

10,000

          Working in poor conditions or for insufficient income

9,000

4,000

13,000

          Did not work and seeking job

134,000

95,000

229,000

          Did not work and did not seek job due to discouragement

100,000

37,000

137,000

          Did not work – Old or illness

62,000

34,000

96,000

          Did not work – Home duties

393,000

210,000

603,000

          Did not work – Students

206,000

122,000

328,000

Population less than 15 years

977,000

623,000

1,600,000

Total Population

2,190,000

1,254,000

3,444,000

Males

Population aged 15 years and over ( Man Power)

611,000

317,000

928,000

          Full employment (working full time: 35 hours and over)

284,000

108,000

392,000

          Working less than usual (lack of employment)

7,000

3,000

10,000

          Working in poor conditions or for insufficient income

11,000

4,000

15,000

          Did not work and seeking job

119,0000

87,000

206,000

          Did not work and did not seek job due to discouragement

62,000

34,000

96,000

          Did not work – Old or illness

35,000

16,000

51,000

          Did not work – Home duties

2,000

2,000

4,000

          Did not work – Students

91,000

63,000

154,000

Population less than 15 years

497,000

316,000

813,000

Total Population

1,108,000

633,000

1,741,000