Since Israel imposed a siege on Gaza in 2007, garment and textile workers and manufacturers have reported a multitude of difficulties under Israel's restrictions.

Garment workers who used to travel to work in textile factories located in Israel are no longer able to travel outside Gaza, and must work in factories for wages worth one-tenth of those Israeli workers with the same or less experience receive. Due to the high unemployment rate, workers have said they feel no choice but to accept the lower pay.

While restrictions for textiles have eased, restrictions on the flow of other goods required for manufacturing still remain. Low wages for outsourced Gazan workers and close proximity are alleged to be the reason Israel has relaxed restrictions and allowed exports of textiles. Limited crossings also add to difficulties exporting clothes beyond Gaza. Furthermore, the power crisis, with power outages of six to eight hours daily, has also led to manufacturers paying high costs for electricity.

According to unionists, the siege has meant factory owners are forced to cut costs, including workers' wages.