As nouns the difference between needlework and needleworking
is that needlework
is the art or process of working with a needle especially in embroidery or needlepoint while needleworking
the art or process of working with a needle especially in embroidery or needlepoint.
the product of such art or process.
the occupation or employment of a person skilled in embroidery, needlepoint, etc.
* stitchery (3)
* sewing (3)
* The Random House Dictionary 1973 (copyright)