Israeli businesses lost 1.2 billion shekels ($ 368 million) during the 11 days of fighting between Israel and Hamas, Reuters reported.

The Israel Producers Association, which represents some 1,500 firms and 400,000 workers, said the losses were mostly due to employees choosing to stay home due to the near-continuous rocket fire from Gaza.

According to the association, about a third of workers were absent from work in southern Israel and about 10% stayed at home in areas closer to the center of trade in central Israel.

This has led to a significant decline in industrial production, lower sales, and direct damage to income, the statement said.

The Israeli government has yet to release an estimate of the damage from the May 10-21 conflict.

Israel's central bank estimates that during the last major fighting between Israel and Hamas in 2014, which lasted seven weeks, the country's economy suffered 3.5 billion shekels, plus much the same damage was done to the tourism sector.

Ron Tomer, president of the association, called on the government to create a permanent compensation scheme that would more effectively help businesses in future rounds of hostilities.

Israel's economy is beginning to recover from the coronavirus pandemic, with official data showing that the unemployment rate stood at 7.9% in April, while other data signals a surge in job vacancies. Growth is expected to be 4-7% in 2021, after a 2.6% decline in 2020.