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Two million jobs lost amid conflict
Iran's workforce has been devastated by the ongoing conflict with the United States and Israel, with Deputy Work and Social Security Minister Gholamhossein Mohammadi revealing that two million people have lost their jobs in the past two months.
Economic ripple effects beyond direct strikes
The layoffs extend far beyond factories damaged in airstrikes. Retailers, manufacturers, import-export businesses, and the digital sector have all been hit, with social media users describing empty metro cars, deserted highways, and half-empty office parking lots in Tehran.
Consumer spending has plummeted as households cut back to essentials, shrinking demand in tourism, restaurants, and non-grocery retail. One X user noted, "You can see it from the emptiness of the Hemmat [highway]. My one-and-a-half-hour journey took only half an hour."
Internet blackout cripples tech sector and women's livelihoods
Authorities imposed an internet shutdown citing security concerns, disrupting Iran's tech and digital sectors. The blackout, which also occurred during protests earlier this year, has cost the economy an estimated $1.8 billion over 52 days, according to Information and Communication Technology Minister Sattar Hashemi.
The shutdown has disproportionately affected women, who make up only one in nine of Iran's working-age workforce. Hundreds of thousands relied on platforms like Instagram to sell products, and many have now lost their income.
Media outlets have also slashed jobs, with the Iran Labour News Agency (Ilna) laying off all its journalists last week and offering freelance contracts instead.
Key industries paralyzed by strikes and supply chain disruptions
In late March and early April, US and Israeli strikes targeted two of Iran's largest petrochemical plants in Asaluyeh and Mahshahr, as well as major steel manufacturers Mobarakeh Steel and Khuzestan Steel. While tens of thousands lost jobs directly, hundreds of thousands more in supporting industries have been affected.
Iran's car manufacturing sector, which employs one million people directly or indirectly, has seen widespread layoffs across its supply chain. Disruptions in the Strait of Hormuz have further choked off raw material imports, forcing factories to halt production.
A manufacturing executive in Qom told the BBC, "We were hoping that when the war stopped, things would go back to normal. But we cannot even get the material loaded on the ship, as our foreign suppliers are worried that the ship won't be permitted to enter Iranian waters."
One social media user reported that a textile company fired 600 of its 650 employees after losing access to raw materials from Australia.
Government loans offer little relief
Some companies have promised to rehire workers when conditions improve, while others have forced employees into unpaid leave. The government has introduced a loan scheme for small businesses, offering 440 million rials (less than $300) per worker, repayable within six months at interest rates between 18% and 35%, depending on the number of layoffs.
Inflation and sanctions deepen crisis
The unemployment wave coincides with an official inflation rate exceeding 50% in March 2026, with experts warning of further increases. If the war continues or sanctions tighten, millions more Iranians could face worsening economic hardship, with airstrikes, soaring prices, and job losses compounding the crisis.
