Economic collapse pushes highly educated Gazans into the ‘survival economy’

Abdullah al-Khawaja, an electrical engineering graduate displaced from Rafah to Khan Younis, now stands behind a small spice stall, having lost the career path he pursued for years. 

 “After struggling in university for years, we had dreams and ambitions to achieve what we aspired to,” says Mr. al-Khawaja, “but after the war, all these dreams were destroyed and all lines of communication with our ambitions were severed.”

He, and many like him, have been forced to turn to the so-called “survival economy,” taking on work that falls far short of his aspirations as a young graduate, he told our UN News correspondent in the Gaza Strip.

From dreams of a degree, to selling sweets

In the same market, Ayham al-Najjar, who once hoped for a career in the field of accounting, works at a stall selling sweets and drinks to support his family.

“I dreamed of finishing my university studies, working in a job and building a decent life, but then the war came,” says Mr. al-Najjar. “I went to work at a stall in order to earn a living.”

Mustafa Sallouh, another university graduate, sells cleaning supplies on the street, following a drastic change in his circumstances. 

“I dreamed of a better life than this current reality,” he says. “Because of the conditions of the war, I am now selling detergent to provide for myself and my family. We are living a life we never imagined.”

Mustafa Sadek, who sells stationery and educational books, has a similar story to tell. “My ambitions were very high,” he says. 

“But three years of our lives have been lost, and now we have to sit at a stall and thank God we are still alive.”

The experiences of these young Palestinians reflect a deteriorating economic reality in the shattered enclave, where the unemployment rate has risen to more than 80 per cent, and much of the population is focused on securing daily necessities: according to data from the Palestinian Central Bureau of Statistics, the price of basic commodities in the Gaza Strip increased by 37.9 per cent during February 2026, further increasing pressure on families.

A joint report by the United Nations and the European Union estimates Gaza’s recovery and reconstruction needs at $71.4 billion over 10 years, including $26.3 billion required within 18 months to restore basic services, rebuild infrastructure and support the economy.

Gaza’s economy has contracted by 84 per cent, the report says, underscoring the depth of the crisis that has pushed thousands of graduates and workers into informal activities simply to get by.