Yemenis

Sanaa, Aden and Marib, Yemen – As fighting intensifies across Yemen between the government and the Houthis, millions of people are confronting another battle far from the front lines: the deteriorating living and economic conditions in the country.

With salaries for large segments of the workforce either unpaid or irregularly disbursed – and the prices of goods and services rising – Yemen’s economic struggles have been compounded by a divided banking system that has made moving money between different parts of the country increasingly complicated.

From Aden’s struggling shoppers to displaced families in Marib and unpaid public-sector workers in Sanaa, Yemenis are being forced to make difficult choices about what they can afford, and what they must go without.

Aden: Food costs swallow salaries

In Aden, the internationally recognised Yemeni government’s interim capital in the south, the problem is not so much a shortage of goods in markets as people’s inability to afford them.

Salaries have failed to keep pace with the rising costs of food, rent, healthcare and transport, leaving workers with little money left over at the end of the month.

The consequences are evident in the smaller quantities and cheaper products that now make up shoppers’ baskets, and the decisions they are forced to make about what to cut back on.

Bushra Abdullah Abdulwarith is a government employee in Aden. She earns 78,000 Yemeni riyals ($50) a month at the black market exchange rate while typical household food costs in government-held areas run about 130,366 riyals ($83), according to estimates by the Yemen Economic Tracking Initiative. And that’s before she factors in the cost of rent, transport, healthcare and other household expenses.

The economic difficulties facing Yemenis like Bushra illustrate how more than a decade of war has devastated the economy. According to the World Bank, real GDP per capita has fallen by approximately 58 percent since 2015.

The fragmentation of Yemen’s monetary institutions between the government and the Houthis – who have operated their own institutions since seizing the capital, Sanaa, in 2014 – along with the disruption of oil exports, and declining international assistance have all contributed to the economic decline.

Bushra told Al Jazeera that rising prices have forced many households to give up almost all non-essential purchases and cut back on some expensive basics, particularly meat. Other families, she said, have resorted to buying food in smaller quantities, sometimes on credit or loans.

Reduced demand

The impact of rising prices is reflected not only in economic figures but also in the way people shop.

Ayman al-Maqtari, who works at a shopping centre in Aden’s Mansoura district, said that his customers now rarely buy non-essential items.

When it comes to the essentials such as rice, sugar, flour, and cooking oil, he has noticed that customers size up the price of each item before putting it in their baskets. They are also buying smaller quantities, for example, opting for a 5kg (11 pound) over a 40kg (90 pound) bag of rice.

“Many people have come to live day by day, or week by week,” Ayman told Al Jazeera, adding that more families are buying on credit when they run out of money before the end of the month.

The decline in purchasing power is also affecting commercial activity.

Across several streets and shopping centres in Aden, advertisements for discounts and special offers have become increasingly visible in shop windows and on retailers’ social media pages, as businesses attempt to attract customers and boost sales.

Weak demand, retailers say, is particularly evident for items that households can put off buying, such as clothing and household goods. A growing share of family income is spent on food, rent, healthcare and transport.

Limited pay increase

The Yemeni government approved a 20 percent cost-of-living allowance in May for public-sector employees in an attempt to ease the pressure of rising prices. But the amount is calculated based on each employee’s base salary, rather than their total pay, meaning the actual increase is relatively small for many workers.

Bushra, the government employee in Aden, said the increase has done little to improve her family’s financial circumstances. She described the allowance as “a temporary painkiller that does not reflect the scale of the actual pressure on people’s living standards”.

Her experience is far from isolated. In early October, the World Food Programme said its latest monitoring in accessible government-controlled areas showed that 74 percent of households were unable to meet their basic food needs.

One of the places where the crisis is evident is Marib, a government-controlled city east of Sanaa that is home to hundreds of thousands of displaced people. The sharp increase in the population over the war years, in what was previously a provincial backwater, has led to pressure on the city’s housing, employment and public services.

Government employees in Marib see their salaries disappear within the first few days after being paid, labourers struggle to find more than a few days of work and displaced families are forced to choose between buying water and milk.

Salah al-Zuhaifi works for a government institution in Marib. He said the war has separated him from his parents, who live in Houthi-controlled territory.

Alone in Marib, al-Zuhaifi said that inflation had eroded much of his salary’s purchasing power.

“No matter how much you earn, it will not be enough to meet your needs,” he said.

Abu Mohammed Nasser al-Asbahi, another government employee, described a similar struggle.

He told Al Jazeera that he earns 400,000 riyals ($250) a month, but more than half of that goes towards his rent, leaving little for his other expenses.

“We don’t even get to the first one-third of the month before the salary is gone,” he said, explaining that his family spends the rest of the month relying on loans and credit from local shops.

The healthcare sector in Marib has also been affected by widespread household spending cuts.

Pharmacist Khaled Mohsen told Al Jazeera that the rising price of medicines has prompted many patients to decline parts of their prescribed treatment and purchase only what they consider most essential.

People with chronic illnesses, meanwhile, have increasingly begun reducing their medication doses to make their supplies last longer before having to buy more, which creates serious health risks.

Houthi areas

Residents of Sanaa and other areas of Yemen’s populous northwest, controlled by the Houthis – an armed group also known as Ansar Allah (Arabic for Supporters of God) – since 2014, are also facing a worsening economic and cost-of-living crisis similar to that affecting Yemenis elsewhere in the country.

Several factors are driving the crisis, particularly unpaid public-sector salaries, declining purchasing power, rising prices for goods and services, and the continuing consequences of the division of Yemen’s currency and banking systems in the early years of the war.

Many public-sector employees in Houthi-controlled areas have gone years without receiving regular salaries, with some sectors only receiving limited payments or half-salaries at irregular intervals.

Even when payments are made, they cannot cover families’ basic needs amid the rising cost of living.

Meanwhile, private-sector workers and business owners face growing pressures as a result of declining economic activity, multiple fees and levies, and a shortage of employment opportunities. The conditions have undermined incomes and job security.

The Yemeni riyal’s exchange rate in Houthi-controlled Sanaa is more stable than in areas controlled by the government. The Houthis have imposed strict monetary controls, banning the circulation of newer banknotes printed by the Yemeni government, and have also enforced a largely fixed exchange rate.

However, that does not necessarily translate into stronger purchasing power. Markets face difficulties caused by cash shortages and the division between monetary and banking systems operating in different parts of the country, including increased costs for moving funds.

That directly affects the many households relying on domestic and international remittances.

For residents in Houthi-controlled areas, the result is an economy in which the currency may be relatively stable, but livelihoods are precarious. Years of unpaid salaries and limited employment opportunities have left many families struggling to afford basic necessities, with few options beyond borrowing, cutting spending or relying on support from relatives.

Taiz, Yemen – Hajja Fatima Mohammed Saleh, a 70-year-old Yemeni woman, is among the countless people and families displaced from Taiz governorate, southwest Yemen, in recent fighting between government forces and the Houthis.

The Iran-backed rebel group, also known as Ansar Allah (supporters of God), now controls most parts of northwestern Yemen, including the capital, Sanaa.

Saleh’s village in Maqbanah district, on the border of Yemen’s western coast, is situated at the epicentre of last week’s Houthi assault in which the group captured the whole of the Red Sea coast, including the port city of Mocha.

At least 100,000 people have now fled their homes following renewed fighting between the two sides, according to the United Nations’ refugee agency, most leaving with few belongings due to the speed of the Houthi offensive.

Saleh said she had to leave her wheelchair behind as it was unsuitable for the rugged terrain her family had to navigate to find shelter.

“The attack was massive, we had never seen anything like it before. Shells were falling heavily on the village, and bullets were flying in every direction,” she told Al Jazeera.

“We had no choice but to leave and flee to a safe place. We left everything we owned and walked a long distance on foot. For me, I suffered especially because I am disabled and cannot walk, so I had to crawl – using both hands – for a long distance through rain and floods before we found a vehicle to carry us.”

UN agencies and the internationally recognised Yemeni government say that Taiz governorate has witnessed most of the displacements, with Taiz City among the Houthis’ next targets after their victory on the Red Sea coast. This means the humanitarian situation could worsen even further.

Ali al-Shumairi, director-general of the Executive Unit for the Management of IDP Camps in Taiz governorate, told Al Jazeera that 65,845 people were displaced between August 10 and September 15. About 95 percent of those displaced come from the five districts which witnessed the heaviest fighting: Jabal Habashi, al-Maafer, Maqbana, al-Wazi’iyah and Mawza.

Fighting has intensified on several fronts in Yemen as government forces have carried out air attacks on Houthi positions in attempts to retake Mocha, days after the group captured the strategic port city, tightening its grip on the Red Sea – a vital shipping lane.

This development has placed the Bab al-Mandeb Strait, the strategic waterway that connects the Red Sea to the Gulf of Aden and the wider Indian Ocean, at the heart of the war between the United States and Iran, and amplifies pressure on global trade routes.

Yemen’s more than 10-year civil war was reignited in July, threatening a United Nations-brokered truce that halted large-scale violence in 2022, after the Houthis declared a maritime blockade on Saudi Arabia and began targeting its ships in the Red Sea.

Forces affiliated with Yemen’s internationally recognised government have launched a campaign against the Houthis on a number of fronts since last week. They have retaken some positions and are advancing in the southwestern Taiz province as clashes intensify.

Osama al-Wafi, supervisor of the Mushrifa camp in Wadi Bikhawlan in Taiz governorate and a representative of the Yemeni government’s Executive Unit in Jabal Habashi district, described the situation as “dire and tragic”.

“These people have been displaced and have lost all the basic necessities of life, after having homes, farms, and livestock. Now they are only looking for a shelter to house them,” al-Wafi told Al Jazeera.

He said the number of displaced people arriving at the camp is steadily rising, with more than 1,500 families entering over the past six days, most living in the open due to a lack of shelter.

The al-Munij camp in the al-Bireen area, about 40 kilometres southwest of the semi-besieged city of Taiz, has become a temporary refuge for Yemenis fleeing the area after another bout of conflict between government and Houthi fighters in 2020.

Over the years, al-Munij has extended over a space of two square kilometres to house more displaced families, while other larger camps have been established in the area. Most residents complain they lack access to the most basic services – such as sporadic drinking water supplies and few toilets – in the camps.

Hajj Saif Qaed Thabet, 73, has been living with his wife and four children in an exposed space with no doors since arriving at al-Munij on September 10. He left behind a farm and livestock from his home in al-Kadaha, western Taiz governorate.

“We were displaced because of the war, fleeing bullets and artillery shells falling over our heads. Since arriving at the camp, we have been living like this, waiting for our situation to be addressed and for us to be housed in a suitable place,” said Thabet. “Praise be to God in all circumstances.”

Malouk Ahmed Ali, 55, from the al-Kadaha area in Taiz, said her family of 14 all escaped drones, shelling and gunfire on foot, including five children under her care, seven under her daughter’s care, and her elderly grandmother.

“We fled to an area near our village in the hope that the war would calm down quickly and we would return to our homes, but the clashes expanded until they reached us, so we were displaced again to here aboard a military vehicle that came to transport the threatened homeless people,” she told Al Jazeera.

“When we arrived at this camp, we were received and placed in this small tent as temporary housing for all members of the large family. Although they took all our information, our situation has not improved much so far, and we still hope it will improve.”

Ali hopes the war will end soon so she can return home but believes her family’s possessions, including solar panels and a battery, will have gone.

“As for our livestock, most of them died, some fled to the mountains and valleys, and what remained was looted,” she said.

Yemeni refugees arrive in Obock, Djibouti, within 24 hours as Houthis tighten their grip on the Bab al-Mandeb strait.

About 1,400 people have fled Yemen for Djibouti in a 24-hour period, Djibouti’s economy and finance minister says, as Houthi fighters tighten their grip on the Bab al-Mandeb strait.

Ilyas Moussa Dawaleh wrote on X on Saturday: “1,400 refugees arrived in Djibouti from Yemen in just 24 hours.”

In a separate post on Friday, the minister said that 500 refugees had arrived in the coastal city of Obock, including women and children, after they were rescued at sea when their boats ran out of fuel while crossing the Bab-el-Mandeb strait.

Obock, a city only about 20 kilometres (12 miles) across the water from the Yemeni coast, has for several years been a preferred arrival point for those seeking refuge from war-torn Yemen. The Bab-el-Mandeb strait is also used in the opposite direction by migrants from the Horn of Africa, who transit through Yemen on their way to Gulf countries.

Safiya Ibrahim, humanitarian response coordinator for the International Organization for Migration (IOM), told AFP that “vulnerable groups such as women and children have reached the shores of Obock, with more expected in the coming days”.

The IOM warned on Friday that at least 46,000 people had been displaced in Yemen since fighting escalated last week.

“Families are being forced to flee for the second or third time in this conflict, with almost nothing left,” Amy Pope, the IOM director general, said in a statement. “As fighting spreads, reaching people with lifesaving assistance is becoming harder. We urgently need safe, unimpeded access.”

Djibouti hosts tens of thousands of refugees and asylum seekers. United Nations Refugee Agency figures from March 2026 show a registered population of more than 36,000, with the majority from Somalia, Ethiopia and Yemen.

The Houthis seized the Red Sea port city of Mocha on Thursday and have since overrun the coastline and islands surrounding the Bab al-Mandeb strait. The rapid offensive has forced thousands of families to flee, with entire villages reportedly emptied in districts such as Maqbanah, Jabal Habashi and al-Maafer.