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Minister of Labor: Even with the creation of one million jobs per year, the unemployment rate will not change

Jan 28, 2026 January 28, 2026 2 min read 📰 Radio Farda
📋 Key Takeaway

The Iranian Minister of Labor stated that even with the creation of one million jobs annually, the unemployment rate will remain unchanged until 2021. Current estimates show a significant discrepancy in unemployment figures, with the government acknowledging three million unemployed while other sources suggest the number could be as high as seven million. This situation highlights the ongoing challenges in Iran's labor market and economic management.

🔍 Quick Context Guide
💡 Bottom Line: Despite efforts to create jobs, Iran's unemployment crisis remains dire, with significant discrepancies in reported figures complicating the government's narrative.

👥 Key Players

Ali Rabiei MENTIONED
Minister of Cooperatives, Labor, and Social Welfare
"Rabiei is responsible for labor policies and addressing unemployment issues in Iran, making his statements critical to understanding the government's approach to economic challenges."
Hassan Rouhani MENTIONED
President of Iran
"As the head of state, Rouhani's policies and statements on job creation and economic management directly impact the Iranian economy and public sentiment."
Akbar Ranjbarzadeh MENTIONED
Member of the Parliamentary Board
"Ranjbarzadeh's role in the Parliament allows him to voice concerns about unemployment statistics and government accountability, reflecting broader political dynamics."

📰 What Happened

During a closed session of the Iranian Parliament, Minister Ali Rabiei stated that even with the creation of one million jobs annually, the unemployment rate would not change by 2021. There is a significant discrepancy in reported unemployment figures, with estimates ranging from three million to seven million unemployed individuals.

  • Minister Rabiei reported three million and 200 thousand unemployed, while other sources suggest up to seven million.
  • President Rouhani noted that 800,000 graduates enter the job market each year, exacerbating unemployment challenges.

💡 Why It Matters

🇮🇷 For Iran: This highlights the severe challenges Iran faces in job creation and economic management, which can lead to social unrest and dissatisfaction among the populace.
🌍 Regional: High unemployment in Iran could lead to increased instability in the region, affecting neighboring countries economically and politically.
🌐 International: International observers may view Iran's economic struggles as a factor in its geopolitical behavior, influencing diplomatic relations and sanctions discussions.

📚 Background

Iran has been grappling with high unemployment rates, particularly among youth and graduates, exacerbated by economic sanctions and mismanagement. Understanding the labor market dynamics is essential to grasp the broader economic challenges facing the country.

Iran's economic sanctions Youth unemployment in Iran
📡 Source: STATE MEDIA
📊 Confidence: 70%
The report comes from Mehr News Agency, which is state-affiliated, suggesting a potential bias in how unemployment issues are framed and reported.

On Sunday, the Iranian Parliament held a closed session to discuss unemployment, during which the Minister of Cooperatives, Labor, and Social Welfare and the Research Center of the Parliament announced that even if one million jobs are created each year, the unemployment rate will not change by the year 1400 (2021). According to Mehr News Agency, citing an unnamed representative, the Minister of Labor reported that the number of unemployed individuals in the country is three million and 200 thousand. Ali Rabiei also stated in this session that even if one million jobs are created annually, the unemployment rate will not decrease by 1400. President Hassan Rouhani had previously mentioned that 800,000 graduates enter the job market each year, and even if 700,000 jobs are created annually, an additional 500,000 people would still be added to the unemployed. Rouhani had warned earlier that in 1395 (2016), 1.2 million job seekers entered the job market, but the government could not accommodate this number. The Statistical Center of Iran announced that the unemployment rate reached 12.3% in the fall of 1395, a decrease of 0.4% compared to the summer. Officials from Rouhani's government also stated that the previous administration created only 14,000 jobs. The Minister of Cooperatives, Labor, and Social Welfare emphasized that according to a report from the Statistical Center, in the previous administration, at best, only 75,000 job opportunities were created annually. However, officials from Ahmadinejad's government had previously claimed that eight million jobs were created during his presidency. Meanwhile, Akbar Ranjbarzadeh, a member of the Parliamentary Board, stated that the unemployment figures announced by the Minister of Cooperatives, Labor, and Social Welfare and the Research Center differ, with the Minister citing three million and 200 thousand unemployed, while the Research Center reported between six million and 500 thousand to seven million unemployed. According to Ranjbarzadeh, the Research Center's report indicates that if one million jobs are created annually, the current unemployment rate will persist until 1400. The Research Center had also warned in the fall of 1395 about the increase in unemployment and its consequences, stating that by 1400, there would be over four million unemployed in the country.

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Translated from the original and edited for English readers. View original source →

Translation confidence: 90%

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