The Palestinian labor force has witnessed many structural changes; most of them are not to the benefit of workers mainly women. It is characterized by a lack of security, low women participation, gender inequality, low wages, and absence of benefits. This study aims to identify the Palestinian policies adopted to increase women’s participation in labor force and the reality of such participation on the ground. It also aims to explore obstacles (political, legal, social, and economic) that limit their participation in the labor market using a descriptive-analytical approach based on the most recent statistics and surveys. The study results show that although women’s participation is increasing, it is still below worldwide levels due to social, economic, legal, and political impediments. The researcher recommends the necessity of raising society awareness of women’s employment, and that more jobs are to be provided for women by the private and public sectors.