The October 2023 Gaza war has significantly disrupted Palestine's labour market, exacerbating the legal, institutional, and political barriers to implementing labour law reforms across both Gaza and the West Bank. Even before the conflict, the labour market faced substantial challenges, with unemployment rates at 25% in the West Bank and 47% in Gaza, while youth unemployment exceeded 63% in Gaza and 41% in the West Bank. Following the war, these figures have surged as widespread destruction of infrastructure and businesses has displaced thousands, with over 80% of housing units in Gaza destroyed and major economic activities halted. Informal workers, constituting more than 50% of the Palestinian labour force, are particularly vulnerable as they lack job security, social protections, or access to stable incomes. The West Bank, although less affected physically, has seen economic stagnation due to heightened political instability, increased Israeli incursions, and restricted access to resources. The Palestinian Labour Law No. 7 of 2000, which inadequately addresses the realities of informal workers, women, and youth, is ill-equipped to handle these growing challenges. Institutional weaknesses, including insufficient labour inspection mechanisms and outdated enforcement structures, hinder reform efforts. In Gaza, the collapse of judicial and administrative institutions has made enforcing labour laws virtually impossible, while in the West Bank, bureaucratic inefficiencies and political divisions between the Palestinian Authority and Hamas further complicate reform initiatives. Gender disparities have also widened, with female labour force participation falling below 19%, as many women have been forced out of the workforce due to caregiving responsibilities or displacement. This research aims to identify and analyze the institutional, and political barriers hindering labour law reforms in Palestine, with a specific focus on the post-war context. The study seeks to provide actionable insights into creating an equitable and inclusive labour market that accommodates all workers, including those in the informal economy. A mixed-methods approach will be employed, combining qualitative and quantitative data to capture the multidimensional challenges. Quantitative data will involve analyzing labour market statistics, including unemployment rates, wage trends, and sector-specific impacts post-conflict. Simultaneously, qualitative data will be gathered through interviews and focus groups with key stakeholders, including policymakers, labour unions, employers, and informal workers, to explore institutional and political roadblocks in depth. The findings highlight the urgent need for rebuilding institutional capacity, strengthening enforcement mechanisms, and integrating inclusive labour policies to address post-war vulnerabilities in Palestine's labour market. Prioritizing social protection for informal workers, fostering public-private partnerships, and enhancing regional cooperation are essential for sustainable recovery. Policy reforms must target gender equity, institutional resilience, and job creation to ensure long-term labour market stability.
