Minister of Labor Predicts New Sanctions Will Leave One Million Unemployed in Iran

The Iranian Minister of Labor emphasized that economic pressure on the country and its people will increase due to U.S. sanctions by the end of the current year, predicting that these new sanctions will lead to the closure of one million jobs in Iran. Ali Rabiei, Minister of Cooperatives, Labor, and Social Welfare in Hassan Rouhani's government, stated in an interview with the Saturday, August 4th edition of the daily Etemad that some economic pressures on Iran would 'increase.' He stressed that 'we must speak honestly with the people and tell them we have entered a real war... which requires greater trust from the people in the government and more rational performance from them, and the government also needs to work harder.' Mr. Rabiei also mentioned the recent turbulence in the Iranian currency market, saying that the 'common discourse' between the people and the government has 'weakened.' As the time for the U.S. decision on the JCPOA approaches and following the end of the Nowruz holidays in Iran, the price of the dollar increased by about 900 tomans in just three days, reaching six thousand tomans. Subsequently, the dollar price sharply increased, ultimately reaching an unprecedented figure above ten thousand tomans, and government officials' promises did not affect the reduction of the exchange rate. Meanwhile, a new wave of protests in Iran has begun following the collapse of the rial, Iran's national currency, against foreign currencies and the unprecedented rise in gold prices in Iranian markets, quickly taking on a political and anti-government tone. In this interview, Mr. Rabiei also stated that in the current situation, the 'theory of social resistance' must be implemented to 'prevent social fragility and increase social resilience.' He mentioned controlling food prices and providing food and medicine for needy individuals and supporting jobs as part of his proposed program details. The increase in currency prices has also raised inflation in Iran, and while the Research Center of the Iranian Parliament has spoken of a two percent increase in inflation following a ten percent increase in currency, the deputy of the Central Bank's research institute announced that due to the rise in currency prices, inflation this year will reach 25 percent and 20 percent next year. Meanwhile, Steve Hanke, an American economist at Johns Hopkins University, estimated the current inflation rate in Iran's economy at up to 117 percent, which is 10 to 12 times higher than the officially announced rate. The Iranian Minister of Labor also predicted that if the government does not take action, one million jobs will be lost due to U.S. sanctions. He also mentioned that the government might preserve some jobs by paying subsidies and 'instead of paying unemployment insurance' to those at risk of dismissal, pay them wages so that these industries 'stay afloat and no layoffs occur.' However, Mr. Rabiei did not explain how the budget for paying wages to those at risk of dismissal would be secured. He also predicted that due to the sanctions, some jobs, including those related to downstream petrochemical industries, clothing, and shoes, would increase. The statements of the Minister of Cooperatives, Labor, and Social Welfare come at a time when, after a year of promises from Hassan Rouhani during the presidential election to implement several job creation and unemployment support plans, none have been executed. The first round of U.S. sanctions against Iran will be implemented on Tuesday, and until all unilateral U.S. sanctions against the Islamic Republic return on November 4th of this year, the U.S. is determined to reduce oil imports from Iran to zero.