蘑菇视频

30 April 2025

Executive Summary:

The objective of this study to facilitate a better understanding of the informal economy in the Occupied Palestinian Territory, including the characteristics of workers and enterprises, existing policies and actors, and the main drivers of informality in two selected sectors: the garment and textile sector, and the nursery and kindergarten sector. It aims to enable stakeholders to be in a position where they can agree on priorities and inform the design of policies to support the transition to formality, replete with better working and living conditions, and establish a basis for monitoring these policies.

The complex Palestinian context has an impact on enterprises and workers, including the ongoing occupation, divisions, diverse regulations and economic challenges. All of this has implications for the transition to formality. This study uses the ILO’s definition of informality, in line with the Palestinian definition, and draws on the framework of the Decent Work Agenda and lessons learned from good practices worldwide on supporting formalization.

The study identifies informal work performed by individuals in both the formal and informal sectors (see table 22, “matrix 1”, in the body of the report, which lists all of the categories identified).

It identifies eight drivers of workers’ informality:

1. limited job opportunities;
2. the vulnerability of both sectors due to regulations, measures and context;
3. skills mismatches;
4. informal employment arrangements;
5. gender-related and social constraints for women workers;
6. limited regulations and enforcement capacity;
7. the lack of awareness of the Labour Law and rights; and
8. informal businesses (as workers’ informality is most pronounced in informal businesses).

The study also identifies five drivers of businesses’ informality:

1. the vulnerability of the targeted sectors and deteriorating economic conditions;
2. sector-related challenges;
3. regulations and the lack of governmental incentives;
4. lack of awareness about the benefits of registration; and
5. skills mismatches, which contribute to increased costs, lower productivity and low levels of competitiveness.

Existing policy frameworks affect informality in the following ways:

• There is a need for the Labour Law, which is currently under review, to include different categories of informality.
• The Occupied Palestinian Territory lacks a fully comprehensive national social security system, and the temporarily suspended Social Security Law is under review.
• Economic laws, including the Companies’ Law and the Investment Law, as well as taxation policies, offer limited support for micro, small and medium-sized enterprises (MSMEs) and startups. However, some positive moves are afoot. The new Companies’ Law No. 42 of 2021 supports emerging, small and medium-sized enterprises (SMEs) by such cancelling the minimum amount of capital required for some types of companies, and permitting the establishment of single owner companies. The Ministry of National Economy has developed a National Industrial Policy and is working on an ECommerce law, as well as on regulating home-based businesses.
• Banking loans and facilities are mainly directed at medium-sized and large businesses.
• There are no measures in place to protect local products from competitive from cheaper imported products. This is needed to save vulnerable sectors, such as the garment and textile sector.
• The current licensing of nurseries and kindergartens is undertaken through the Ministry of Education and the Ministry of Social Development. This provides protection for children and workers. However, the nursery and kindergarten sector remains challenged by a lack of decent work.
• Overall, economic sectors lack the support they require during periods of heightened risk, such as the COVID-19 pandemic.
• The enforcement of existing laws is weak, and is affected by the complex context and limited capacity.
• There has been no comprehensive mapping of nurseries and kindergartens by area and population – including of existing enterprises, and the numbers needed. This has created an environment of increased competition.
• High interest rates exist for loans to businesses and startups.
• The TVET Law is currently being prepared.
• Trade facilitation is highly controlled by Israeli control over borders and currency in the Occupied Palestinian Territory.
• The withholding of Palestinian tax revenues by the Israeli authorities adds to the vulnerability of the Palestinian Authority, reduces purchasing power and, as a result, negatively affects demand for the targeted sectors.
• The lack of financial inclusion is a key contributor to informality. The general public is largely unaware of banking services. Despite the existence of a National Strategy for Financial Inclusion, development in the area of financial inclusion and an increase in the percentage of financial inclusion.
• Informal structures and networks contribute to informality.

Identified factors that constrain, or could enhance, the transition to formality, and risks for businesses and workers, are identified and listed in table 23 (“matrix 2”). It presents these alongside quotes from consulted workers, employers and other stakeholders. Constraining factors are grounded in existing challenges and the drivers of informality. Enabling factors for the transition to formality include addressing challenges, preparing for risks, enhancing policies and laws, and raising awareness.

The study identifies best practices and lessons learned on the transition to formality in the Occupied Palestinian Territory (see box 4). The six cases identified include initiatives by the Chambers of Commerce and Industry (CCI), an initiative targeting the leather and shoe sector, the Khaitan project in Jenin and Gaza with the Ministry of National Economy, an initiative on school uniforms in Gaza, a pilot apprenticeship programme by the International Labour Organization (ILO) in construction-related vocations, and awareness raising on workers’ rights through skills development. Based on the study’s findings on the dynamics of informality (see section 8.1), it highlights a number of areas of concern:

• the vulnerability of both sectors due to the context and risks;
• policy and regulation gaps related to business development;
• challenges of access to finance;
• challenges of access to markets;
• challenges of access to resources;
• challenges of access to workers (employment gaps and skills development);
• Skills mismatches and gaps (lifelong learning and the certification of workers and employers);
• limited awareness among employees, employers and the public; and
• decent work deficits and challenges related to occupational safety and health.

The study offers recommendations to address these areas of concern, overcome challenges and leverage opportunities for the transition to formality (see table 23, “matrix 2”). It also provides operational recommendations for facilitating this transition (see table 24, “matrix 3”), outlining the recommended operational actions, stakeholders’ involvement, and timeframes needed to operationalize the overall recommendations.

The existence of a National Tripartite Committee of the Social Dialogue for Formalization and Employability in the Southern Neighbourhood Region (SOLIFEM) Project can enable the implementation of this study’s recommendations. The committee includes policymakers (representing the Ministry of Labour, the Ministry of National Economy and the Ministry of Social Development) and other stakeholders (trade unions, and chambers of commerce and industry). The willingness of so many stakeholders to be engaged can be leveraged to facilitate action on the study’s recommendations. So too can other stakeholder networks, as well as the ILO’s network with the Ministry of Education, fostered through another initiative, the Tripartite Project.