The Palestinian economy suffers from several structural distortions and imbalances, including the inability of the Palestinian economy to absorb the entire workforce, leading to a significant surplus, which has exacerbated the problem of unemployment in Palestine in a threatening manner.

The workforce in any country or society is considered one of the most important production factors, and the fundamental pillar for achieving comprehensive development goals, progress, social welfare, and providing decent living standards for people, regardless of their political, economic, social, cultural orientations, and others. As for Palestine, its labor market is characterized by a faster growth rate of the workforce than the growth in demand for labor, which pushes more Palestinian workers to seek job opportunities abroad, especially in the occupied territories, or join the ranks of the unemployed. The gap between labor supply and demand is increasing steadily in both the West Bank and Gaza Strip, indicating that the Palestinian economy's ability to absorb Palestinian labor is declining over time, necessitating the search for strategic alternatives to reduce this gap and develop relationships with the private sector, which is considered the main incubator for employment in Palestine.

The partnership between the public and private sectors is based on many principles and foundations agreed upon between the two sectors, including contractual arrangements between one or more government entities and private sector companies in specific projects, such as the management, development, and operation of industrial zones through franchise contracts granted by the government to the private sector, or those where the private partner is required to supply the government with assets and services, traditionally provided by the public sector, directly.

One of the most successful forms of partnership in various countries around the world is the partnership in developing the technical and vocational education and training system to serve the labor market and meet the aspirations of the private sector in obtaining skilled, qualified, and trained labor.

Hence, the idea of ​​developing the relationship between the National Technical Vocational Education and Training and the private sector emerged, aiming to outline a plan for developing skills for the workforce or those entering the labor market from graduates and trainees in various learning and training institutions.