Iran's employment crisis: 2M people lost jobs due to war
What's the story
The ongoing conflict involving Iran, the United States, and Israel is causing a major employment crisis in the country. The war has led to mass layoffs across industries such as manufacturing and aviation, pushing millions into poverty. According to Iranian Deputy Work and Social Security Minister Gholamhossein Mohammadi, one million jobs have been lost directly due to the conflict, with another million lost through secondary effects, as per Etemad Online.
Economic impact
UN warns of rising poverty levels
The United Nations Development Programme has warned that up to 4.1 million more people could fall into poverty as the war continues. Economist Hadi Kahalzadeh at the Quincy Institute told CNN that shipping and trade disruptions are worsening the crisis. "Many firms have suspended operations under the combined pressure of war, inflation, recession, and collapsing demand," he said.
Sectoral damage
Aviation and technology sectors hit hard
The aviation sector has also been hit hard, with flights being canceled and contracts going unpaid. Soheila, a senior flight attendant, said her contract ended in March and she wouldn't be paid until flights resume. The technology sector is equally affected, with companies shutting down due to the crisis. Jafar, a data analyst, said he was considering working in ride-hailing to survive after his company shut down entirely.
Economic decline
Inflation at 72%
Iran's economic fragility has worsened due to the war, with inflation hitting 72% in March. Unemployment claims have surged, with 147,000 applications filed in the past two months. Saeed Tajik of the Tehran Chamber of Commerce criticized government policies that seem to favor remote work for some employees while businesses struggle financially.
Call for action
Layoffs could accelerate further
The ongoing economic fallout from the war is not just about damaged infrastructure but also lost jobs and shrinking incomes. Analysts warn that without targeted support such as loans, tax relief, and aid for small businesses, layoffs could accelerate further. The situation continues to deteriorate as the conflict rages on.