GAZA, May 2 (Xinhua) -- In the early morning, Abdullah al-Khawaja wheeled his small cart through the crowded alleys of Khan Younis market in southern Gaza, dodging potholes and rubble left by the conflict.
Once an electrical engineering student, he now lays out tiny spice bags on a narrow dirt strip between stalls, waiting for customers.
"I believed education was the only path to a better future, but the war changed everything," the 27-year-old, the sole breadwinner for an eight-member family, told Xinhua. "It is also the loss of years of effort and ambition."
Nearby, accounting graduate Ayham al-Najjar, 29, stands behind a wooden table piled with sweets and drinks. He never imagined his degree would lead here.
"I dreamed of working in a company or institution, building my future step by step after graduation," he said. "But the war stopped everything. There are no jobs and no training opportunities to even begin with. I was forced to work here to support my family."
The chasm between academic learning and harsh reality weighs heavily on him. "Sometimes it feels like university lessons have no value," he said. "We stand for hours waiting for customers, and often the day passes without enough earnings. It is exhausting physically and mentally."
Business graduate Mustafa Salouh, 25, has been selling cleaning supplies for years. "The hardest part isn't the work but the feeling of lost prospects," he said.
Across Gaza's markets, university graduates, who are armed with degrees in engineering, accounting, business administration, and humanities, now find themselves with no option but to sell food or basic goods from stalls, earning modest and unstable incomes.
Gaza's unemployment rate has surged to about 68 percent, with labor force participation falling to around 25 percent from 40 percent before the war, according to the Palestinian Central Bureau of Statistics. Basic commodity prices rose 37.9 percent in February this year.
Palestinian economist Samir Abu Modallalla said the trend of graduates turning to street vending signals a deeper structural imbalance in the economy.
"The market has lost its ability to absorb qualified labor," he said. "What we are witnessing is a near-total paralysis of economic activity, with productivity sharply declining and investment levels falling."
"It is also a transformation in the nature of work itself," he said. "The informal sector has become the primary refuge for thousands of families."
He described a "survival economy" based on "small-scale activities that provide minimal income without stability or protection."
The Ministry of Labor in Gaza has warned of an "unprecedented collapse" in the labor market, with most households depending on humanitarian assistance amid halted production and widespread business closures.
A joint report by the UN and the EU estimated Gaza's reconstruction needs at about 71.4 billion U.S. dollars, while the local economy has contracted by 84 percent.
For those like al-Khawaja, these are not just statistics, but the daily reality of uncertainty.
"We are not looking for luxury," al-Khawaja said, counting his meager earnings that barely cover basic needs. "We only want a chance to live with dignity and one day to return to the professions we studied for."
