Unemployment Rate Reached 10.9% This Summer

The report from the Statistical Center of Iran on the labor force survey for this summer indicates that both the unemployment rate and the economic participation rate have increased simultaneously. According to this report, the unemployment rate for the population aged 10 and above in summer 2023 reached 10.9%, which is an increase of 0.1 percentage points compared to the previous season. The unemployment rate in summer 2022 was 10.5%, indicating a 0.4% increase in the unemployment rate this summer compared to the same season last year. The Statistical Center of Iran estimates the number of unemployed individuals aged 10 and above in the reported seasons to be over 2 million and 735 thousand. The economic participation rate also reached 38.9% this summer, which is 0.9% higher than the economic participation rate for the population aged 10 and above in this season compared to spring 2023. The economic participation rate in summer 2023 increased by 1.2 percentage points compared to the same season last year. The simultaneous increase in both the unemployment rate and the economic participation rate this summer indicates that although the active population has increased and more individuals are seeking work, the job market has not been able to meet the needs of all of them, resulting in an upward trend in the unemployment rate. The report specifies that the unemployment rate in urban areas is higher than in rural areas. Additionally, the unemployment rate for the population aged 10 and above is broken down by gender, showing a rate of 19.9% among women and 8.9% among men. The report also states that the unemployment rate among youth aged 15 to 24 reached 25.7% this summer. An analysis of the unemployment rate for youth aged 15 to 29 shows that this indicator increased by 3.2 percentage points compared to the same season last year and by 1 percentage point compared to the previous season. The services sector continues to employ the largest number of workers in Iran, accounting for 48.6% of employment, followed by the industrial sector at 32.2% and the agricultural sector at 19.2%. An examination of the share of workers aged 15 and older who typically work 49 hours or more indicates that 41% of workers usually work more than 49 hours per week. This indicator, which is one of the measures of decent work, shows that a significant portion of employed individuals in Iran work beyond the standard. The widespread recession in Iran's economy and slow economic growth are among the obstacles facing the government in creating jobs and reducing unemployment, a challenge that even government officials like Masoud Nili, the senior economic advisor to the President of Iran, acknowledge will remain the biggest challenge for Iran's economy in the coming years.