Economic crisis and impaired services

The West Bank is in the grip of a severe economic crisis, with the situation continuing to spiral due to Israeli policies: Israel’s refusal to release billions of dollars of tax and duty revenues belonging to the Palestinian Authority, the continued ban on the entry of tens of thousands of Palestinians who previously worked in Israel, and harsh travel restrictions that prevent or delay access to workplaces and agricultural land and thereby reduce output.

According to International Labour Organization data, unemployment in the West Bank stood at 28.7% in 2025. Even now, more than 100,000 Palestinians who had Israeli work permits in October 2023 are still barred from returning. With no available alternatives, some workers risk their lives to cross into Israel without a permit, whether by jumping off the Separation Barrier or taking the risk of being gunned down by Israeli security forces. According to a UN report, from October 7, 2023, to May 11, 2026, 17 Palestinians were killed and 290 injured while attempting to cross into Israel. In a high-profile incident in April 2026, 68 Palestinian job seekers who attempted to cross into Israel crammed inside a garbage truck were caught and arrested.

Israel is withholding about 14 billion ILS, or roughly 4.8 billion USD, in tax and duty revenues collected on behalf of the Palestinian Authority, at the direction of the Cabinet and the Minister of Finance Bezalel Smotrich. Without this income, the Palestinian Authority is unable to pay full salaries to about 170,000 public sector employees, which has exacerbated the public’s plight and hurt essential services, including healthcare and education. Since October 2023, Palestinian Authority public schools have been open only three days a week, instead of five. As this situation continues into the third year, the impact on children and their families is becoming increasingly serious.

Israel plays a direct and decisive role in the economic crisis in the West Bank. It is another way in which Israeli policy leads to violations of the basic human rights of West Bank Palestinians, such as the right to education, the right to health, and the right to a dignified standard of living.