Iran sees mass redundancies from war with US and Israel

Iran has faced a significant surge in job losses, driven by the ongoing conflict with the United States and Israel. The deputy work and social security minister, Gholamhossein Mohammadi, revealed two million individuals have lost employment due to the war. These widespread job cuts dominate conversations on social media platforms among Iranian citizens.

Employers and officials describe the situation as “balancing the workforce,” but the repercussions extend far beyond factories damaged by airstrikes. The downturn affects various industries, including manufacturing, retail, import-export operations, and digital sectors.

“You can see it from the emptiness of the metro,” shared a user on X. “You can see it from the abundance of parking spaces near the office,” added another. “You can get it from the emptiness of the Hemmat highway in Tehran. My one-and-a-half hour journey took only half an hour,” noted a third.

The war has also dampened consumer spending, with many people prioritizing basic necessities. This has led to declining demand in sectors like tourism, restaurants, and non-grocery retailers. Meanwhile, the Iranian government’s internet blackout, imposed since the conflict began, has severely impacted the tech industry.

Officials claim the internet shutdown was necessary for security, aiming to block surveillance, espionage, and cyber threats. The measure was also used during protests earlier this year to limit organizing and information access. According to the information and communication technology minister, Sattar Hashemi, each day without internet costs the economy at least 50 trillion rials. Over 52 days of the blackout, this amounts to more than $1.8 billion in lost revenue.

The shutdown has disproportionately affected female workers. Before the war, only one in nine working-age women were employed, and many relied on platforms like Instagram to reach customers. Now, with supply chains disrupted, hundreds of thousands have been laid off or forced into unpaid leave. Some companies promise to rehire once conditions improve.

Recent attacks on Iran’s petrochemical plants in Asaluyeh and Mahshahr, along with steel manufacturers Mobarakeh Steel and Khuzestan Steel, have compounded the crisis. While thousands lost jobs directly, an estimated hundreds of thousands more work in related industries. A manufacturer in Qom reported halting production due to material shortages, citing foreign suppliers’ fears of restricted access to Iranian waters.

One case highlights the textile sector: a social media user described their sister-in-law’s company firing 600 out of 650 employees after cutting off raw material imports from Australia. As inflation hits 50% and shows no signs of easing, the economic strain continues to mount. With the war showing no signs of abating, the challenge for Iran’s labor market remains daunting.