Gaza's unemployment rate was among the world's highest, at 45.2% in late 2010, the UN has found, as Israel's blockade of the territory enters its fifth year.
Real wages meanwhile fell by more than a third.
Its report says that private businesses have been hardest hit by the continuing ban on virtually all exports.
Israel tightened sanctions on Gaza in 2006 after militants captured Israeli soldier Gilad Shalit.
The blockade was tightened again a year later when Hamas ousted rival Palestinian organisation Fatah from the territory.
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