Rocketing unemployment in Gaza stands at 45 percent, while it stands at around 17 percent in the occupied West Bank.
Poverty rate in the Gaza Strip has risen to 59 percent from 43 percent five years ago due to "very high unemployment and deteriorating social conditions".
The World Bank said in a report released on Tuesday that unemployment in the Gaza Strip stood at 45 percent.
The Strip was hit hard during 11-days of devastating conflict with Israel in May, while the economy was also impacted by restrictions imposed to stem the spread of coronavirus, the report revealed.
"The dire living conditions and the high dependency on social assistance of the people of Gaza is of particular concern," said Kanthan Shankar, World Bank Country Director for the West Bank and Gaza.
"The way ahead is still uncertain," Kanthan said.
Occupied West Bank
In the occupied West Bank, the unemployment rate stood at around 17 percent, according to the World Bank calculation, pointing out that the "Palestinian Authority's fiscal situation remains very challenging" and warning it was "no longer able to borrow from domestic banks".
The PA's deficit is expected to reach $1.36 billion in 2021, it added.
The Bank projected a slow in growth in all Palestinian territories to around 3 percent in 2022 compared with 6 percent in 2021.
The World Bank called on donors "to help reduce the budget deficit", and for the "systematic transfer" of revenues Israel raises from businesses operating in the so-called Area C of the West Bank, where Israel holds full control under the 1995 Oslo Accords.
"Releasing some of these funds would provide much needed quick financing in these difficult times," it added.