Well, apparently, according to legend, when Israel pulled out of Gaza a few years ago, they left behind commercial grade greenhouses and irrigation systems. Which Hamas dismantled and scavenged for parts for bombs or whatever.
Yes, Israelis should employ Palestinians, as many as possible and as soon as possible. I'd venture a guess that workers with decent salaries, paid vacations, health benefits, pensions, whatever, would be less likely to feel driven to create havoc.
Not Hamas, though, they only live to die.