The town owes much of its property to the manufacture of religious objects made from Olive Wood, Mother of Pearl and coral. Over one thousand different gift items are made and sold mainly to pilgrims and tourists. Hand embroidery is another special trade mark in Bethlehem. Other industries include textile, chemical and stone manufacturing. Bethlehem has a long tradition of skilled stonemasons, working the high quality stone that come s from quarries in the vicinity of the town.
Education is compulsory for nine years.
The district has 75 public schools and 19 private schools. In Bethlehem private schools are dominant. After completing 12 years of school and passing the Tawjihi examination, students may attend a university in their country or abroad. Bethlehem University is one of the leading institutions for higher education in Palestine. It was founded in 1973, with the administrative cooperation of the De La Salle Brothers and the Vatican.