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Sectors and Industries Are Losing Workforce; 50% of Workers Have Informal Jobs

Feb 5, 2026 February 5, 2026 3 min read 📰 VOA Persian
📋 Key Takeaway

The Iranian labor market is facing a crisis as half of the employed population holds informal jobs, indicating a significant issue in job quality and sustainability. High inflation and low wages are driving workers to seek better opportunities abroad, exacerbating labor shortages in various sectors. This situation raises concerns about the future economic stability and workforce utilization in Iran.

🔍 Quick Context Guide
💡 Bottom Line: Iran's labor market crisis highlights severe economic challenges that could lead to increased instability.

👥 Key Players

Ghasem Rostampour MENTIONED
Director General of Supervision and Coordination of Entrepreneurship and Employment Plans, Ministry of Labor
"He provides insights into the state of employment and labor market policies in Iran."
Hadi Aboui MENTIONED
Labor member of the Supreme Labor Council
"He highlights the challenges faced by workers and the reasons behind labor migration."
Ayat Asadi MENTIONED
Representative of workers in the Supreme Labor Council
"He addresses issues related to wage suppression and its impact on the workforce."

📰 What Happened

The Iranian labor market is facing a crisis as half of the employed population holds informal jobs, indicating poor job quality and sustainability. High inflation and low wages are driving workers to seek better opportunities abroad, leading to significant labor shortages in various sectors.

  • 50% of employed individuals in Iran have informal jobs.
  • Inflation and low wages are causing a migration of workers seeking better livelihoods.

💡 Why It Matters

🇮🇷 For Iran: The high rate of informal employment and labor shortages threaten economic growth and social stability in Iran.
🌍 Regional: Labor migration could affect neighboring countries as skilled workers leave Iran, impacting regional labor markets.
🌐 International: The situation may draw attention from international organizations concerned with labor rights and economic conditions in Iran.

📚 Background

Iran has been grappling with high inflation and unemployment, which have exacerbated the quality of jobs and worker conditions. Many workers are turning to informal employment or leaving the country due to insufficient wages.

Economic sanctions on Iran Inflation and cost of living in Iran
📡 Source: STATE MEDIA
📊 Confidence: 70%
The article reflects the views of government officials and may present a state-centric perspective on labor issues.

The statements of the Director General of Supervision and Coordination of Entrepreneurship and Employment Plans of the Ministry of Labor, indicating that half of the employed population has informal jobs, serve as a warning for the future of sectors and industries in utilizing the workforce in Iran. This issue also proves that the 'reduction of unemployment' in the government's claimed statistics is due to the exit of the active population from the labor demand market and the prevalence of false employment. The quality of formal jobs created in recent years has always been questioned, and Ghasem Rostampour has commented on the sustainability of these jobs, stating: 'This requires the passage of time to show whether the jobs created and the individuals who have entered the labor market and become employed have maintained their jobs or not.' The website 'Khabar Online' has described this trend as indicative of the 'unclear economic path of the country' and noted that countries that are more successful in planning for human resource training have a clearer economic path. The Fars news agency, in a report published on December 2 of this year, emphasized that inflation is so high that people cannot meet the minimum living standards for themselves and their families with labor wages. In the report from this security-affiliated news agency, it is stated: 'False jobs have emerged that have minimized the motivation for work and production, and all these factors lead to many industrial units facing severe labor shortages.' This security media emphasized that 'even street vending has a significantly higher income than working in factories and production units.' In such conditions, the Secretary of the Supreme Association of Workers' Guilds has stated, 'There is work, but there are no workers,' and a labor member of the Supreme Labor Council has reported on the migration of workers. Hadi Aboui stated in August of this year that due to reasons such as low wages, the workforce 'is not inclined to work; employers have repeatedly requested labor, but the workforce does not accept.' At the same time, Ayat Asadi, a representative of workers in the Supreme Labor Council, also stated that 'wage suppression' has caused some workers to migrate. The website 'Eghtesad 23' reported on Thursday, December 30, indicating that 'the shortage of workers has become the main challenge for employers' and reported an 'increased desire to migrate among workers' in Iran. In this report, the main reason for migration and labor shortages was cited as livelihood issues, emphasizing that the livelihood basket, according to experts, is stated to be 30 million tomans per month. In such conditions, the government still intends not to increase the minimum wage of workers for the next year in line with the inflation rate, and according to media reports in Iran, ultimately, a 20% increase will be imposed on workers. The controversial resolution in the final step; 'Increasing the retirement age' will be implemented from Farvardin. The consequences of unusual wages; workers remain unemployed, but do not work for low wages. A government official considered the unemployment rate of graduates to be 'decreasing.' Rising inflation and unemployment rates; the misery index has increased in 14 provinces of Iran. Media criticism of 'agreed wages'; the livelihood basket in Iran is less than 20 million tomans.

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

Translation confidence: 85%

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