Bethlehem city is home for the most important industry in Palestine which is the eastern handicraft industry like mother-of-pearl, and olive wood and textiles, as well as stone and concrete factories.
There are 73 shop for vocational industries like blacksmithing, carpentry, and aluminum industry, 37 butchery shops, 26 bakeries, 95 grocery stores, 185 shops for selling clothes, 300 stores for different purposes, such as stores for selling auto parts, carpets, flowers, and other 500 services institutions, and 132 markets.
As a result of the unfair Israeli actions, the economic conditions have dropped dramatically for the inhabitants of Bethlehem city. Many citizens have lost their source of income, and have become unemployed. This situation has pushed the unemployed inhabitants to work in the field of services. In 2014, the unemployment rate has reached 27% in the city of Bethlehem.
Bethlehem has an area of approximately 10,611 acres, of which 6,535 acres are suitable for agriculture and 1,373 acres of land is residential. Agriculture sector depends in Bethlehem on rainwater. The irrigated area depends on the public water network. Some Bethlehem residents raise livestock, such as cows, sheep, goats, chickens, and bees.