Analysis the Labor-Intensity of Growth in the Palestinian Economy for the Period 2001-2010

The main objective of this study is to analyze the labor-intensity of economic growth for the Palestinian economy at both the macro and sectoral levels for the period 2001-2010 and to examine whether the economic growth is jobless or job creating one. For this purpose the researcher used descriptive - analytical method for the real GDP data and employment data issued by the Palestinian Central Bureau of Statistics. The analysis of the employment elasticities relative to the real GDP for the period 2001-2010 showed the existence of a positive but low effect for the growth of real GDP on employment in the local economy, where the employment elasticity was 0.37 however, the analysis showed a clear difference in employment elasticities in the different years of the study, as well as the existence of a difference in the elasticities of employment between sectors of the economy for the same year, and a variation in the elasticities of employment from year to year in the same economic sector. This study showed also that the growth rates of real output in some years associated with the decline in rates of employment growth which is known as jobless growth phenomenon .Also found that rates of positive growth in real GDP is associated with positive growth rates in employment But in the presence of high rates of unemployment which is known as Growth Paradox phenomenon.