A stark socioeconomic divide is widening within Israel, with Palestinian citizens experiencing the most severe impacts of escalating poverty rates, according to a recent governmental assessment. The National Insurance Institute’s annual evaluation, released Thursday, reveals that approximately two million individuals—including 880,000 children representing over one-quarter of Israel’s youth—currently subsist below the poverty threshold in 2024.
This comprehensive analysis positions Israel with the second-highest child poverty rate among OECD member nations, surpassed only by Costa Rica, with 28% of Israeli children classified as impoverished. The report further documents intensifying social inequality, indicating that 65.1% of impoverished individuals originate from marginalized communities, predominantly the Palestinian demographic.
Statistical findings demonstrate that 37.6% of Palestinian households fell beneath the minimum income requirement in 2024, followed by Haredi Jewish families at 32.8%. Institutional experts identified Israel’s military operations in Gaza alongside the nation’s escalating cost of living as primary catalysts exacerbating poverty among families, children, and elderly populations.
Zvika Cohen, Deputy Director General of the Institute, emphasized that these factors have ‘amplified pre-existing structural issues rather than creating new ones.’ Cohen warned that ‘without targeted investment in children, young families, and social services, intergenerational poverty transmission will persist unabated.’
Nitza Kassir, Deputy Director of Research and Planning, advocated for enhanced social safety nets to address declining income levels, particularly following recent conflicts. Kassir highlighted the unequal economic burden, noting that financial pressures are ‘more profound and severe within populations already experiencing economic hardship,’ stressing the necessity of workforce integration and equitable wage distribution.
The annual assessment indicates 27.8% of Israeli households struggle to meet basic financial obligations, with Palestinian communities consistently ranking as most disadvantaged—approximately half cannot cover monthly expenses including medical treatments, prescription medications, and nutritional requirements.
Historical context reveals that Palestinian citizens of Israel descend from native populations displaced during Israel’s establishment in 1948. Currently numbering over two million people (21% of Israel’s 9.8 million population), this community has endured decades of discriminatory legislation and institutional practices, reporting persistent challenges in accessing housing and public services.
A November report by legal center Adalah documented that Israel enacted over 30 laws between October 2023 and July 2025 that reinforce systems of apartheid and repression against Palestinians. These legislative measures target fundamental rights including freedom of expression, protest rights, citizenship provisions, family unification, and detainee protections.