As the gap between income and the cost of living widens in Iran, experts point to the lack of appeal in job offers for job seekers and workers. They report that many companies are currently in need of labor, but workers are unwilling to accept jobs with current wages.
According to the state-run ILNA news agency, Hamidreza Ghaznavi, Secretary-General of the Iranian Entrepreneurs Association, stated on Thursday, March 6: “Today, we face a labor shortage in our industry. At one time, we ranked second or third globally in terms of labor cost competitiveness, but we have completely lost this advantage.”
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According to him, it is not economically viable for workers to accept these jobs at such low wages.
From the perspective of the Secretary-General of the Iranian Entrepreneurs Association, economic progress and development require a system where workers share in company profits, leading to increased productivity.
When wages fail to meet basic living needs, workers prefer not to work. Many workers are seeking to migrate to neighboring countries, especially skilled workers who are in high demand.
Statistics show that job seekers are not interested in employment at current wages because it is not economically viable. Additionally, “blank signature contracts” have undermined both the financial and legal rights of workers.
With such low wages, workers seek alternative sources of income to cover their daily expenses.
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Meanwhile, economic hardships and low wages have made migration increasingly attractive for workers. Mohsen Bagheri, a member of the Iranian regime’s Supreme Labor Council, has stated that “even unskilled workers in the country are now migrating.”
Bagheri emphasized that it is unclear why the government should have four representatives in the Supreme Labor Council, stating that a single representative from the Ministry of Labor should suffice.
He attributed declining wages to reduced productivity in the workplace and stated that even neighboring countries now offer wages high enough to attract unskilled Iranian workers to migrate.
According to reports, the gap between wages and the cost of living has widened in recent years, prompting workers to demand wage increases to match the minimum cost of living. Some have called for raises as high as 70%.
The state-run IRNA news agency reported that surveys indicate several key reasons why individuals are reluctant to work in industrial and service sectors. These include heavy and exhausting labor, physical and psychological harm from demanding jobs, lack of job security, insufficient skills and expertise among workers, preference for informal but lucrative jobs, failure to receive legally mandated wages and benefits, rising inflation, declining purchasing power, and the imbalance between job difficulty and wages.
Previously, the state-run Quds newspaper had reported that “jobs exist, but workers do not.”
According to the newspaper, while manufacturing units in industrial towns complain about an unsuitable business environment due to frequent power outages, water shortages, and numerous other obstacles to production, some producers are also struggling with labor shortages. The situation has become so dire that many of these units have turned to employment agencies for help.
The report stressed: “The situation has reached a point where even legally mandated wages, holiday bonuses, severance pay, productivity incentives, paid leave, transportation services, job classification benefits, and even a minimal meal allowance are no longer enough to attract job seekers to work in factories. As a result, job advertisements for industrial positions now flood social media platforms, channels, and websites related to manufacturing units daily.”
The state-run Nournews, linked to the Iranian regime’s Supreme National Security Council, described the current labor market situation, stating that rising living costs and the low wages set by the Supreme Labor Council have led both educated and uneducated young people to avoid productive and manufacturing jobs, according to labor activists.
According to Nournews, one of the main concerns for young job seekers is low wages, as salaries set by the Ministry of Labor fail to cover living expenses, forcing many to turn to informal or unregulated jobs to make ends meet.
