Economic Hardship Weighs on Jerusalem Families as Unemployment Rates Soar and Poverty Rises

Once she became the sole provider for her family, Umm Mahmoud, a 35-year-old Jerusalemite, was forced to work as a domestic helper in homes that care for the elderly. Her husband is no longer able to work due to illness, and her 21-year-old son is unemployed, with no prospects for finding work in a worsening economic and political climate in Jerusalem.

“It’s not easy for me to leave my house every morning and take care of the elderly in more than one home in Jerusalem,” Umm Mahmoud told Jerusalem Story.1 “But the situation is extremely difficult. We’ve reached a state of hunger, and my son, like others his age, is unemployed.” She paused for a moment, unable to continue speaking, as tears welled in her eyes. She explained that she felt ashamed talking about it and about what she is forced to do to make ends meet. She quietly stood up and left.

In Jerusalem, it is rare for mothers to leave their own homes and work in those of others to earn a living. As in many traditional, patriarchal societies, men are typically the primary providers, while women take more supportive roles and manage the home front. But at a time when Jerusalemites are struggling to feed themselves and their families, every member of the family is feeling the pressure.

The unemployment crisis is particularly tough on youth. Some young men work a day or two in Israeli facilities such as bakeries, as Rami, 21, told Jerusalem Story: “I work in a bakery in West Jerusalem. The large bakeries there hire Arab employees in the days leading up to Shabbat, from Thursday until dawn on Friday,” he explained, as it is uncommon these days for Israeli businesses to employ Palestinians full-time.2 “I spend the rest of the week unemployed, sitting at home staring at the walls, wondering when I’ll ever be able to even think about starting my own family.”

Like many his age, Rami’s prospects for marriage are connected to his economic standing. “This dream seems impossible under the current circumstances,” he shared.

Umm Mahmoud and Rami are not unique in their struggles. The phenomenon of women forced into work due to rampant youth unemployment is on the rise due to worsening economic strain in Jerusalem, a city known for its exorbitant cost of living, and a city that is also the second poorest in the country, with 38.6 percent of its overall population living in poverty in 2024, according to the National Insurance Institute.3

As Umm Mustafa, a mother of six, explained while sitting amid a pile of vegetables in an alley of the Old City: “One breadwinner is no longer enough to support a family.”4 National data confirm this.5 Umm Mustafa believes that Israel deliberately created the soaring unemployment and poverty crises afflicting Palestinian families in Jerusalem “to force us to leave.” “But what Israel doesn’t understand,” she continued, “is that we have no alternative to Jerusalem. That’s why I’m forced to work in place of my unemployed son, who used to work in an Israeli restaurant in West Jerusalem.”

But her son, like many Palestinians in Jerusalem, has been laid off. Whether due to financial capacity or political ideology, Israeli business owners are increasingly letting their Palestinian employees go. “Because of the ongoing wars, his employer fired him and his colleagues,” Umm Mustafa said. She continued:

Khalil, a 25-year-old university graduate, was forced to set up a stall at the entrance of a neighborhood in Jerusalem to sell falafel, hoping to provide some of the necessities for his family after his father was forced to close his shop in the Old City due to accumulated debt owed to the Jerusalem Municipality. “This caused my father distress, sadness, and illness,” Khalil explained, adding that he is the only one among his four brothers who is working.6

Since October 7, 2023, it has become difficult for Palestinian Jerusalemites to find work inside Israel due to rampant racism, to say nothing of the brutality of Israeli police against young Palestinian men. The threat of arbitrary harassment, beating, and detention has led many youth to isolate themselves in their homes and the vicinity of their immediate neighborhoods.

Khalil continued: “This falafel stall brings in very little money, but it gives me the feeling that I am working rather than being a burden on my family, who are suffering.” Khalil explained that if it were not for the help the family receives from relatives, their situation would be much worse. “Imagine—my father was a great merchant, and now he is disabled, unable to work, waiting for help. The situation is extremely difficult. May God help us.”

The majority of Palestinian Jerusalemites suffer from accumulated debt, largely due to arnona, a fluctuating municipal property tax that often leads to marginalizing Palestinians and ultimately results in their getting expelled from their homes (see Inflation Hits Palestinian Jerusalemites Hard While the City Doubles Municipal Tax). These families are thus unable to provide basic necessities of life, including bread.7

Ziad al-Hammouri, director of the Jerusalem Center for Social and Economic Rights, explained to Jerusalem Story that unemployment rates among young Palestinians in Jerusalem have exceeded 50 percent—the highest rate in Israel—while nearly 80 percent of Palestinian families live below the poverty line. Those fortunate enough to find work generally earn a monthly salary of no more than $1,200, which is insufficient to meet their family’s needs and household expenses, amounting to nearly $3,000 a month.8

Nafez Asila, an activist from the Old City, explained that unemployment has a serious psychological impact, especially among young people:

Nafez added that the situation in the Old City, where he lives, is more serious:

Nafez concluded:

Dr. Saeed Sabri, a financial and economic advisor, suggested that external support can help alleviate unemployment. He noted that international donors can play a supportive role in backing economic and development programs aimed at boosting job opportunities and improving young people’s ability to integrate into the Jerusalem labor market.

“This can include funding vocational and technical training programs, supporting small and medium-sized enterprises (SMEs), and developing initiatives targeting youth, women, and sectors most affected by economic challenges,” Sabri explained.10 “Directing support toward the digital economy, remote work, entrepreneurship, and technology can also open up additional income streams alongside the city’s existing traditional sectors, such as tourism, services, crafts, and local businesses.”

Concluding his remarks, Sabri stressed that “it is crucial that this support be directed toward sustainable and measurable programs—that it is not limited to short-term aid but contributes to building lasting skills and creating more stable job opportunities.”