Theories and studies indicate that education is an essential factor to reduce the probability and unemployment duration and increase chances for business continuity and stability in a decent job. Nonetheless, what happens to women in many countries of the Middle East and North Africa is just the opposite, specifically in the Palestinian Territories, where the participation of women in the labour market is very low and significantly high rates of unemployment are witnessed. Results indicate that the more the years of education among women the higher the unemployment rate, unlike men, causing a significant gap between both sexes. Then comes the question repeated in all seminars, workshops and conferences, of why women face low possibilities of getting a job when they decide to enter the labour market, especially those young and highly educated? This is the basic problem that this research study tries to tackle through highlighting and identifying the factors affecting the low potential of graduate women in entering the labour market unlike graduate males despite their achievements in education. We have used recent data of the results of Labour Force Quarterly Survey 1996-2008 (total Quarterly sample size for each year is 7600 households), using high technology in the methodology for rotating the sample and the personnel follow-up for the four quarters during a year and a half which provides a meticulous study of the situation. A survey of graduates in the labour market 2006 was also used, which in turn provides a rich base of indicators that support the search results. It should be noted that the methodology came in twofold, the first, a descriptive analysis of the available data, and the second by using the Transition Probability Matrix and analysis of the Probit Regression model. The results confirm the existence of the problem, and relate the reasons to the limitations that restrict the movement of women to get jobs. Moreover, it shows that the problem of unemployment among graduates is highlighted in specific areas and disciplines that do not match the requirements of the market, as well as the employers’ point of view of occupations and activities that women can exercise. Delays in obtaining work, often lead women out of the labour market which in turn causes their low participation in the workforce. The general trend in the future puts in front of the Palestinian decision-maker extraordinary challenges to provide opportunities for jobs that take into account the geographical distribution and the programming of scientific disciplines offered by universities.