IranIran’s Employment Crisis: The Increase in Unemployment Insurance Registrations

Iran’s Employment Crisis: The Increase in Unemployment Insurance Registrations

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The increase in unemployment insurance applicants reflects the chaotic condition of workers following the warmongering policies of the clerical regime. While officials of the Iranian regime speak of managing wartime conditions, statistics published by state-run media and members of parliament present a very different picture of the labor market. The sudden rise in the number of unemployment insurance applicants, the closure of economic units, and the collapse of online jobs are only part of the consequences of war and economic crisis in Iran. Official reports now indicate that hundreds of thousands of people have registered to receive unemployment insurance, statistics that reveal the depth of recession and the expansion of poverty.

205,000 people register for unemployment insurance

The state-run Eghtesad News website reported on May 12, citing Meysam Zohourian, a member of the regime’s parliament, that since the beginning of the war, around 205,000 people have registered to receive unemployment insurance. Zohourian presented these figures after a meeting with Ahmad Meydari, the regime’s minister of cooperatives, labor, and social welfare.

Food Inflation and the Erosion of the Middle Class in Iran’s Economy

He said that according to the Labor Ministry’s report, some individuals who have lost their jobs may enter the informal sector, but the cost of their unemployment insurance will still remain the government’s responsibility. This issue shows that even regime officials admit to the expansion of informal employment and the collapse of job security.

During the same meeting, damage to several companies affiliated with the Labor Ministry was also discussed. Jam Petrochemical Company and the national shipping company were among the enterprises that, according to regime officials, were damaged during the war. These losses have directly reduced the revenues of pension funds and deepened their financial crisis.

Unemployment insurance and the widespread wave of job destruction

At the same time as the increase in demand for unemployment insurance, other reports have also revealed the vast scale of unemployment in the country. Alireza Mahjoub, secretary-general of the Workers’ House labor organization, announced that more than 700,000 jobs have been lost during the war. According to him, around 130,000 people have become directly unemployed, while nearly 600,000 others have lost work indirectly. If each unemployed worker is calculated as supporting at least six family members, the lives of millions of people have consequently been endangered.

In other remarks, Mohammadi, deputy minister of cooperatives, labor, and social welfare, reported the destruction of more than one million direct jobs. He also emphasized that in total, around 2 million people are facing direct and indirect unemployment. The discrepancy between these figures is a sign of the economic structure’s disorder and the lack of transparency in official reporting.

The increase in applicants comes while the unemployment insurance fund covered only around 180,000 people before the war. Reports now indicate that approximately 750,000 people have been referred to this fund. This massive surge has imposed enormous financial pressure on a fund that has faced budget deficit crises for years.

Crisis in the online labor market

The employment crisis has not been limited to factories and industries. The online labor market is also facing an unprecedented wave of unemployment. The JobVision employment platform announced that in just one day, more than 318,000 job applications were registered on the platform. This figure represents an increase of around 50% compared to the pre-war period.

Economic experts attribute this situation to prolonged internet shutdowns, reduced startup activity, market recession, and a sharp decline in investment. Many private companies in recent months have either halted operations or laid off part of their workforce.

Meanwhile, regime officials continue speaking about “reforming the Social Security Law.” In part of his remarks, Zohourian referred to a proposal under which the average of the entire insurance contribution period would become the basis for retirement pensions. However, this proposal is still under review, and no legislation regarding it has been approved.

Many workers and retirees view these promises as a continuation of the regime’s exhausting policies, policies that for years have postponed people’s livelihood crisis through empty promises.

Unemployment insurance: a symbol of the collapse of people’s livelihoods

The explosive increase in unemployment insurance requests is not merely an economic figure. These statistics directly reflect the collapse of job security, the expansion of poverty, and the inability of the ruling structure to manage the crisis. War, sanctions, systemic corruption, and mismanagement have now placed millions of Iranian families at risk of unemployment and instability.

At a time when the regime of velayat-e faqih has proven incapable of offering practical solutions, workers and wage earners are paying the highest price for the political and economic crises. The long unemployment insurance lines have today become one of the clearest signs of the Iranian regime’s economic deadlock.

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