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At Least 66% of Jobs Lost in Gaza, More Losses Possible, ILO Says 

Smoke rises following an Israeli air strike on Khan Yunis, in the southern Gaza Strip, 20 December 2023. (EPA)
Smoke rises following an Israeli air strike on Khan Yunis, in the southern Gaza Strip, 20 December 2023. (EPA)
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At Least 66% of Jobs Lost in Gaza, More Losses Possible, ILO Says 

Smoke rises following an Israeli air strike on Khan Yunis, in the southern Gaza Strip, 20 December 2023. (EPA)
Smoke rises following an Israeli air strike on Khan Yunis, in the southern Gaza Strip, 20 December 2023. (EPA)

At least 66% of jobs have been lost in Gaza since the Israel-Hamas conflict erupted in October, the International Labor (ILO) said on Wednesday, warning that employment losses could continue to increase in the enclave.

The losses amount to a total of 192,000 jobs in the small Palestinian territory, the ILO said in its second assessment of the impact of Israeli ground and air strikes on Gaza which began after a deadly cross-border incursion by Hamas gunmen on Oct. 7.

In a first assessment released in early November, ILO estimated that 182,000 jobs had been lost in Gaza, a figure representing more than 60% of employment.

"Today hardly anybody in Gaza is able to earn income from work," said Peter Rademaker, ILO deputy regional director for the Arab states.

"It's clearly a still growing curve," he said of employment loss. "It might even get worse."

Jobs are also being lost on a large scale in the Israeli-occupied West Bank, where the United Nations has recorded an uptick in violence against Palestinians since the outbreak of the conflict.

ILO estimated that around 32% of employment has been lost since Oct. 7, equivalent to 276,000 jobs.

Even before the war and the tightening of Israel's economic blockade of the Gaza Strip, around half of the narrow coastal enclave's 2.3 million people lived below the poverty line.

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Inflation Rose to 2.3% in Europe. That Won't Stop the Central Bank from Cutting Interest Rates

A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
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Inflation Rose to 2.3% in Europe. That Won't Stop the Central Bank from Cutting Interest Rates

A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq

Inflation in the 20 countries that use the euro currency rose in November — but that likely won’t stop the European Central Bank from cutting interest rates as the prospect of new US tariffs from the incoming Trump administration adds to the gloom over weak growth.
The European Union’s harmonized index of consumer prices stood up 2.3% in the year to November, up from 2.0% in October, the EU statistics agency Eurostat reported Friday.
Energy prices fell 1.9% from a year ago, but that was offset by price increases of 3.9% in the services sector, a broad category including haircuts, medical treatment, hotels and restaurants, and sports and entertainment, The Associated Press reported.
Inflation has come down a long way from the peak of 10.6% in October 2022 as the ECB quickly raised rates to cool off price rises. It then started cutting them in June as worries about growth came into sharper focus.
High central bank benchmark rates combat inflation by influencing borrowing costs throughout the economy. Higher rates make buying things on credit — whether a car, a house or a new factory — more expensive and thus reduce demand for goods and take pressure off prices. However, higher rates can also dampen growth.
Growth worries got new emphasis after surveys of purchasing managers compiled by S&P Global showed the eurozone economy was contracting in October. On top of that come concerns about how US trade policy under incoming President Donald Trump, including possible new tariffs, or import taxes on imported goods, might affect Europe’s export-dependent economy. Trump takes office Jan. 20.
The eurozone’s economic output is expected to grow 0.8% for all of this year and 1.3% next year, according to the European Commission’s most recent forecast.
All that has meant the discussion about the Dec. 12 ECB meeting has focused not on whether the Frankfurt-based bank’s rate council will cut rates, but by how much. Market discussion has included the possibility of a larger than usual half-point cut in the benchmark rate, currently 3.25%.
Inflation in Germany, the eurozone’s largest economy, held steady at 2.4%. That “will strengthen opposition against a 50 basis point cut,” said Carsten Brzeski, global chief of macro at ING bank, using financial jargon for a half-percentage-point cut.
The ECB sets interest rate policy for the European Union member countries that have joined the euro currency.