The Palestinian Authority issued a decision on Friday to stop all new recruitment and promotions in government institutions until further notice as a result of the financial crisis it is currently experiencing, a statement from President Abbas' office said.

Palestinian economist Nasser Abed al-Kareem told Ma'an that the PA was forced to make the decision as a result of the current financial crisis, adding that the move will add around $30 million annually to the PA's budget.

"This decision has more disadvantages than advantages. This decision will decrease purchasing power and increase the unemployment rate," al-Kareem said.

The PA must intervene to solve unemployment and should limit senior positions in the PA, which account for around 60 percent of PA wage expenditure, he added.