The situation in the Gaza Strip is worse now than it has been since Israel has occupied the West Bank in 1967, a report by Amnesty International and other human rights groups revealed Thursday. The report paints a very grim picture of the situation in Gaza in recent years, and particularly since Israel has imposed strict restrictions on the movement of goods and people in response to Hamas' takeover of Gaza in June 2007. To read the full report – click here According to the report, the economic isolation of the 1.5 million Palestinians living in Gaza has worsened unemployment and poverty and caused education and health services to deteriorate. Over a million people – 80% of the families - in the Strip are currently dependent on food supply from international aid agencies, compared to 63% of the families in 2006. Video: Infolive.tv Additionally, the number of trucks allowed to enter Gaza daily currently stands at only 45, compared to an average of 250 in the past. The Israeli ban on the transfer of raw materials has led to the freezing of 95% of industrial projects. As a result, almost all the factories in the Strip have gone bankrupt and forced to close. Hamas' takeover of the Strip has also had a devastating effect on the local economy. Between June and September 2007, the rate of Palestinians earning less than $1.2 a day rose from 55% to 70%. Empty shop in Gaza (Photo: Reuters) The unemployment rate in Gaza currently stands at 40% and experts believe it might soon reach 50%. In the last year alone, some 75,000 people have lost their jobs. Hike in food prices The closure on the Strip and the collapse of the local economy have also contributed to a sharp increase in food prices. In 2007, Gazans spent 62% of their income on food supplies, compared to only 37% in 2004. The prices of flour and milk climbed 34% and 30% respectively between May and July 2007. Rice prices jumped by 20% over the same period. Hospital in Gaza. Prolonged power outages (Photo: AFP) As a result of the limited fuel and electricity supply, hospitals in Gaza face long power cuts, which last up to 12 hours a day. The report states that 18.5% of Palestinians who applied for medical treatment outside the Strip were rejected in 2007 and that the number of Palestinians who were approved treatment outside Gaza dropped by 25%. Twenty people awaiting an entry permit to Israel to receive medical treatment have died between October-December 2007, including five children. 'Exert greater pressure on Israel' The report's authors call on the UK government and the European Union to exert pressure on the Israeli government to lift the blockade on Gaza and refrain from limiting fuel and electricity supply to the Strip. The groups also urge the UK and EU to help mediate a truce between the Palestinian factions, in order to facilitate talks between Israel and the PA. The report further calls on the Palestinian terror groups to cease rocket attacks and refrain from targeting civilians, and urges Israel to stop strikes in Gaza.