Iran sees hundreds of thousands of jobs lost due to war

Over the past six weeks, Iran has experienced a sharp rise in unemployment as the conflict intensifies. Industrial infrastructure has been severely damaged, disrupting production in multiple sectors and disproportionately affecting workers. With over 93 million Iranians under the threat of renewed hostilities, many are now bracing for worsening economic hardship. The situation escalated when Washington imposed blockades on Iranian ports and vessels in the Strait of Hormuz following stalled peace negotiations in Pakistan. This action aims to reduce oil export earnings and prevent Iran from levying fees on ships using the critical waterway. The result has been a disruption in the flow of goods to Iranian ports, compounding the crisis.

Trade unionist Ismail Abdi highlighted the strain on ordinary citizens in a statement to DW. “The ongoing war—whether through military action or economic measures like blockades and regional strife—has placed the most pressure on workers, teachers, and wage earners,” he said. Abdi, a former member of the Iranian Teachers’ Association, faced imprisonment for advocating labor rights 11 years ago. Accused of “propaganda against the political system,” he served several years in jail before being freed under global trade union pressure. Since March 2025, he has resided in Germany, continuing his advocacy for education and free speech.

“In recent weeks, we have received shocking reports about the suffering of the working class under wartime conditions in Iran,” Abdi added. “When factories, workshops, or service projects are shut down or scaled back, contract workers, day laborers, and informal employees are the first to feel the impact. This weakens their ability to negotiate and drives wages closer to collapse.”

The war has inflicted severe economic damage, with mismanagement, corruption, and sanctions already undermining Iran’s financial stability. The government estimates the war’s cost at approximately €229 billion ($270 billion) as of April 14, according to spokesperson Fatemeh Mohajerani. However, the full scale of destruction to major industrial sites remains uncertain. The Mobarakeh Steel Company in Isfahan, a vital producer of military equipment like missiles and drones, ceased operations after a US-Israeli strike in late March. Steel is also essential for civilian sectors, including automotive manufacturing, appliance production, and packaging.

Energy strategist Umud Shokri, a senior visiting fellow at George Mason University, warned of broader labor market fallout. Attacks on petrochemical hubs in Asaluyeh, Mahshahr, Shiraz, and the South Pars gas field have crippled production and led to widespread job losses. In Mahshahr, where over 30,000 people are employed, many face sudden unemployment and reduced pay. “The damage extends far beyond individual facilities,” Shokri noted. “It triggers cascading effects, forcing dependent businesses to halt operations and deepening economic instability.”

Steel production, once a cornerstone of Iran’s economy, has dropped to a standstill, leaving thousands without work. With annual exports previously totaling 31.8 million tons and revenues reaching $860 million between March 2025 and January 2026, the shutdown has disrupted livelihoods. At least 10,000 steel industry workers are classified as day laborers, making them especially vulnerable. The crisis underscores the interconnectedness of Iran’s industrial and economic systems, as disruptions in one sector ripple across the entire economy.

To view this video, enable JavaScript and upgrade to a browser supporting HTML5. The footage captures the human toll of the conflict, emphasizing the urgent need for relief efforts. As tensions persist, the challenge for Iran’s workforce grows, with uncertainty looming over the duration of these setbacks.