42% of the Unemployed in the Country are University Graduates

Saeed Namaki, the Deputy for Social Development of the Organization for Management and Planning of Iran, announced that 42% of the unemployed in the country are university graduates. This official from the Organization for Management and Planning stated, "A lot of money has been spent on their education, and a fundamental solution must be found to address this problem and prevent the emigration of elites." According to ISNA news agency, Mr. Namaki emphasized during the first conference on the role of universities in the national economy on Tuesday, April 23, that the education provided in Iranian universities is "long, expensive, and irrelevant." He also mentioned that university graduates do not acquire skills that match the needs of the job market. The most accessible solution for this segment of the country's human capital to escape this "misery" is emigration from Iran, and given the globalization of the job market, the emigration of this segment of the workforce and human capital from the country should not be surprising. Ahmad Alavi, an economics professor in Sweden, stated that one reason for the emigration of educated individuals abroad, or the phenomenon known as "brain drain" from Iran, is the "anxiety" about not having a job in the future. These remarks come at a time when Hassan Taee, the Deputy Minister of Cooperatives, Labor, and Social Welfare, had previously announced the unemployment rate for university graduates to be "between 21.5% and 22%." Meanwhile, Ahmad Alavi, in an interview with Radio Farda, stated that the statistics provided by this official from the Organization for Management and Planning indicate an increase in unemployment among this group of the Iranian workforce. He emphasized that the statistics regarding unemployment among university graduates and their share of the total population are inconsistent with each other. According to Mr. Alavi, investment in human capital is one of the most important factors for sustainable growth, and unemployment among this segment of the Iranian workforce means the cessation of capital utilization, reduced economic efficiency, and consequently reduced economic growth. This economist reminded that unemployment for the unemployed individual is not only about the inability to earn income but also about reduced social status, decreased influence on personal and social life, and ultimately political marginalization. Mr. Alavi reiterated that the most accessible solution for this segment of the country's human capital to escape this "misery" is emigration from Iran, and given the globalization of the job market, the emigration of this segment of the workforce and human capital from the country should not be surprising. The Mehr news agency had previously reported that among major fields of study, the highest unemployment rates are related to computer science at 41.14%, environmental protection at 37.6%, arts at 28%, and physical sciences at 27.8%, while the lowest unemployment rate for graduates is related to veterinary science. Meanwhile, Ahmad Alavi identified the main reason for the increase in unemployment among university graduates as a decrease in long-term investment, particularly in knowledge-based economic units and projects that require expertise and knowledge. He emphasized that this situation is a product of Iran's economic isolation and inward-looking economic policies. The Statistical Center of Iran reported the unemployment rate in 1996 to be 12.1%. However, last year, the unemployment rate for young people aged 15 to 29 was 25.3%. The method of calculating the unemployment percentage in Iran has always been a subject of dispute and has undergone multiple definitions. While officials from various Iranian governments have always spoken of a decrease in the unemployment rate, some economists believe that the unemployment rate is higher than what is reported by the Statistical Center of Iran. In this context, the unemployment rate in Iran is reported based on the standards of the International Labour Organization, which states that all individuals aged 10 and older who have worked for at least one hour are considered employed.