Historically, Jerusalem's economy was supported almost exclusively by religious pilgrims, as it was located far from the major ports of Jaffa and Gaza. Jerusalem's religious landmarks today remain the top draw for foreign visitors, with the majority of tourists visiting the Western Wall and the Old City, but in the past half-century it has become increasingly clear that Jerusalem's providence cannot solely be sustained by its religious significance.
economic growth in the city, since 1967 East Jerusalem has lagged behind the development of West Jerusalem. Nevertheless, the percentage of households with employed persons is higher for Arab households (76.1%) than for Jewish households (66.8%). The unemployment rate in Jerusalem (8.3%) is slightly better than the national average (9.0%), although the civilian labor force accounted for less than half of all persons fifteen years or older—lower in comparison to that of Tel Aviv (58.0%) and Haifa (52.4%). Poverty in the city has increased dramatically in recent years. According to a report by the Association for Civil Rights in Israel (ACRI), 78% of Palestinians in Jerusalem lived in poverty in 2012. This marks a steady increase from 2006 when 64% of Palestinians were in poverty. While the ACRI attributes the increase to the lack of employment opportunities, infrastructure and a worsening educational system, Ir Amim blames the legal status of Palestinians in Jerusalem. In 2006, the average monthly income for a worker in Jerusalem was NIS5,940 (US$1,410), NIS1,350 less than that for a worker in Tel Aviv.
During the British Mandate, a law was passed requiring all buildings to be constructed of Jerusalem stone in order to preserve the unique historic and aesthetic character of the city. Complementing this building code, which is still in force, is the discouragement of heavy industry in Jerusalem; only about 2.2% of Jerusalem's land is zoned for "industry and infrastructure." By comparison, the percentage of
