View of Har Homa in the West Bank. Photo: James Emery.

According to a report from Israel’s Foreign Ministry, the differentiation between labels for Israeli products being made within the 1949 Armistice Line and those in the West Bank would hurt Jews—but it would harm Palestinian Arabs even more, Israel National News reports.

According to the report, some 22,500 Arabs are employed inside Israeli towns in the West Bank. These Palestinians, who are among the highest paid laborers in the PA, would be hurt significantly by the modified labeling. The report said that on average, Palestinians working for Jewish-owned businesses in the West Bank earned 88% more than those working in Arab towns. In addition, they receive health benefits, pension rights and social benefits that are usually unavailable to Palestinians.

According to the Central Bureau of Statistics, unemployment would shoot up if the boycotts advocated by anti-Israel groups were to cause a massive rejection of goods by consumers.

The report concludes that if the aim of the European Union and anti-Israel groups is to assist Palestinian Arabs, then the labeling of goods as being “from the settlements” is the most counterproductive action that could be taken.

“The labeling issue affects [PA] employment, level of income, youth unemployment, and the wealth of PA Arabs,” the report said, according to Israel National News.