One Fifth of Israelis Displaced by Gaza War Remain Unemployed

New research findings indicate that about one fifth of Israeli citizens who were forced to leave their homes following the attack by the extremist group Hamas on October 7 of last year have lost their jobs and remain unemployed. The study conducted by the Israel Democracy Institute, which took place in December and January, and whose results were published on Tuesday, March 7, adds that slightly more than one third, approximately 39 percent, of the displaced individuals from northern Israel have been able to return to their homes, while most of these areas, which were targeted by rocket and missile attacks from Hezbollah in Lebanon for months, remain uninhabited. Following the Hamas attack, which the United States and the European Union classify as a terrorist organization, several thousand Israelis living in settlements and villages near the Gaza Strip and along the border with Lebanon were evacuated. Shortly thereafter, with the onset of rocket attacks from Hezbollah in Lebanon on northern Israel, tens of thousands of residents in these areas were also forced to leave their homes. The Israel Democracy Institute's research notes that during the census conducted in December and January, about 19 percent of individuals who were employed before the war are still unemployed. About three percent of those who were employed prior to the war have been called up for military service. The staggering costs of Israel's wars and the future ahead. The results of this research outline part of the economic costs of the 15-month war in Gaza and southern Lebanon for Israel, which has an average growth rate of only one percent in 2024. According to statistics from this research, which were collected about two months ago, the income of about one third of Israeli households has decreased since the start of the war. The reduction in household income in northern Israel, where economic activities, tourism, and agriculture have been severely affected by the war, is about 44 percent. The Bank of Israel announced in October that the significant decline in economic activity in the northern regions of the country due to the war with Hezbollah is increasing pressure on the Israeli economy, which is facing serious challenges due to increased military budgets and a labor shortage in key areas such as construction. Due to the closure of border crossings between Israel and Palestinian areas in the West Bank after the start of the war, tens of thousands of Palestinian workers who used to work in Israel have become unemployed. The unemployment of Palestinian workers has intensified financial pressure on the Palestinian Authority, which has lost part of its tax revenue since the war began.