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Minister of Labor Reports 7 Million Iranians Working in Informal Jobs

Feb 1, 2026 February 1, 2026 2 min read 📰 Radio Farda
📋 Key Takeaway

Iran's Minister of Labor announced that 7 million Iranians are working in informal jobs, highlighting a significant unemployment crisis with a need for 800,000 to 900,000 new jobs annually. The current unemployment rate is particularly high among youth, and the situation reflects ongoing economic challenges in the country.

🔍 Quick Context Guide
💡 Bottom Line: Iran faces a critical employment crisis with millions in informal jobs, highlighting the urgent need for effective economic policies.

👥 Key Players

Ali Rabiei MENTIONED
Minister of Cooperatives, Labor, and Social Welfare
"As the Minister of Labor, Rabiei is responsible for addressing employment issues and labor policies in Iran, making his statements critical for understanding the country's economic challenges."
Hassan Taee MENTIONED
Deputy Minister of Labor
"Taee's insights on job creation needs provide a clearer picture of the labor market's demands and the government's challenges in meeting them."
Ali Taebnia MENTIONED
Former Minister of Economy
"Taebnia's warnings about the influx of university graduates into the job market highlight the long-term implications of unemployment and economic policy."

📰 What Happened

Iran's Minister of Labor reported that 7 million Iranians are working in informal jobs, emphasizing the need for 800,000 to 900,000 new jobs annually to combat rising unemployment. The current unemployment rate is particularly severe among the youth.

  • Only 15 million out of 22 million employed individuals in Iran are insured.
  • The unemployment rate for young people aged 20 to 26 is about 26.5%.

💡 Why It Matters

🇮🇷 For Iran: The high level of informal employment and rising unemployment rates pose significant challenges for social stability and economic growth in Iran.
🌍 Regional: Economic instability in Iran can lead to increased migration pressures and affect regional security dynamics.
🌐 International: The situation may influence foreign investment decisions and international relations, particularly with Western nations concerned about human rights and economic conditions.

📚 Background

Iran has been struggling with high unemployment rates, particularly among youth, amidst economic sanctions and internal policy failures. The informal job sector often lacks benefits and job security.

Iranian economy Youth unemployment
📡 Source: STATE MEDIA
📊 Confidence: 70%
As a government report, the information may reflect official narratives and could downplay the severity of the employment crisis.

According to Iran's Minister of Labor, among the 22 million employed individuals in the country, only 15 million are insured, while 7 million are engaged in informal jobs. In a conference on Sunday, June 7, Ali Rabiei, the Minister of Cooperatives, Labor, and Social Welfare, stated that 800,000 to 900,000 new jobs are needed annually to reduce the unemployment rate to single digits, adding that "last year we managed to prevent the loss of 240,000 jobs." Rabiei also emphasized the need for a change in the workforce's mindset, announcing that "last year, 300,000 jobs were identified and introduced through employment centers, of which 100,000 individuals expressed their unwillingness to stay in those jobs." Previously, the Minister had pointed out that unemployment has become one of the "most challenging internal issues" in the country, warning that "if we do not take action, the number of unemployed will reach ten million by the year 1400 (2021)." Currently, there are six million unemployed individuals in Iran, with an additional seven million expected to join them. Furthermore, Hassan Taee, the Deputy Minister of Labor, reported in early December 2014 that Iran needs to create 800,000 to 900,000 new jobs annually, which requires a production growth rate of 7%. Among age groups, the unemployment rate for young people aged 20 to 26 is about 26.5%. In this context, Ali Taebnia, the Minister of Economy, had previously warned about the impending influx of 4.5 million university graduates into the job market. The precarious unemployment situation in Iran contrasts sharply with former President Mahmoud Ahmadinejad's promises made on July 13, 2006, to eradicate unemployment within two to three years. These promises persisted for several years, and he even announced in April 2012 that "we will celebrate the eradication of unemployment." However, the general unemployment rate, according to official statistics from the Statistical Center of Iran, increased from 11.5% in 2005 to 12.2% by the end of 2012. Reports indicate that while the job market has yet to resolve the unemployment issue for those born in the 1980s, individuals born in the 1990s are now entering the job market, with some of them being job seekers. Additionally, the Deputy Minister of Interior reported a 40% unemployment rate in 11 cities across Iran.

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

Translation confidence: 85%

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