Geneva - Palestinians are facing greater social and economic hardships with the situation exacerbated by rising food prices, according to a new report published Thursday.

"Working poverty is rising, genuine employment is declining, and frustration is growing", said the annual study of workers in the region compiled by the International Labour Office (ILO).

Unemployment was hovering around 20 per cent as a result of what the report called a "severe economic siege" which had closed crossings to all but essential humanitarian supplies.

The unfolding employment crisis was compounded by the "systematic disregard" of the fundamental rights of Arab workers to equality of opportunity and treatment in employment.

Up to 80 per cent of the population was dependent on food aid with international assistance under growing pressure due to soaring food prices.

The incidence of extreme poverty was 40 per cent of the population in Gaza and 19 per cent in the West Bank in November 2007, a slight improvement on November 2006 levels but still "alarmingly high."

The situation had been eased by the resumption of civil servants' pay, the report said.

"With the devastation of military action, and the continuing fine net of restrictions on movement, there is no doubt that economic and social hardship is mounting in the occupied Arab territories", said the report, adding that "pitting the claim 'security first, then peace' against 'peace as a condition for security' leads to an impasse".

The report based on findings from missions sent to the Palestinian territories, including Gaza, the Golan and the West Bank this year, is due to be presented to the ILO's annual session In Geneva on May 28. (dpa)