Challenges and Solutions: Palestinian Youth Employment and Entrepreneurship

Youth unemployment in Palestine remains one of the most significant socio-economic challenges, with a disproportionate impact on young graduates. Despite a large pool of educated youth, the labor market struggles to absorb them, primarily due to a mismatch between academic training and market needs, limited job opportunities, and socio-political barriers. This paper explores the key challenges Palestinian youth face in entering the workforce, emphasizing the roles of education, underemployment, and the impact of political instability. Additionally, it examines the potential of entrepreneurship as a solution to youth unemployment, focusing on the obstacles young Palestinians face in establishing businesses, such as limited access to finance, regulatory challenges, and inadequate support ecosystems. The study employs a mixed-methods approach, combining quantitative analysis using summary statistics and regression analysis with qualitative insights from literature reviews and case studies. Statistical measures such as mean, median, and standard deviation were used to assess unemployment rates, and Ordinary Least Squares (OLS) regression was applied to explore the impact of education, access to finance, and region on youth unemployment. The study also incorporates case studies and a literature review to examine the role of innovation, particularly through digital and social entrepreneurship, in addressing these barriers. Based on the findings, the paper proposes comprehensive policy reforms, including aligning education with market demands, simplifying regulatory frameworks, and increasing access to financial resources. By fostering an entrepreneurial culture, Palestine can unlock the potential of its youth, promoting long-term economic development and stability.