Page 22 - IRANRptSep20

Iran sets aside $305mn for unemployed workers hit by COVID-19 turmoil
Unemployment rate stood at 12.4% in last fiscal year
The Iranian government has set aside Iranian rial (IRR) 50 trillion ($305mn at the free market rate, $1.2bn at the government rate) for unemployed workers in the wake of the mass layoffs that have occurred as a result of the coronavirus (COVID-19) crisis, IRNA reported on April 7.
Thousands of casual workers have been laid off in Iran in recent weeks. Annual bonuses have also been scrapped given the crippling financial situation in the country caused by its coronavirus outbreak, the worst in the Middle East.
The announcement of the unemployment benefit comes after significant domestic pressure was put on the Rouhani administration for its handling of the pandemic’s impact on the country.
To prevent the spread of the virus, applicants are urged to fill out online forms for unemployment benefits at a newly-designated website, bimebikari.mcls.gov.ir, within 30 days, rather than turning up at an office of the Ministry of Cooperatives, Labor and Social Welfare.
Those classed as sole traders and others with full worker insurance are not eligible for the scheme.
The exact amount of the payment per individual is not known yet, but it is likely to only be awarded to those in the lowest income brackets including factory, retail and delivery workers, to name but a few.
The funding for the unemployment benefit is likely to derive from the country’s sovereign wealth fund (SWF). It has released the ​equivalent of €1bn in local currency​ to the government to help it grapple with the coronavirus situation.
According to the Statistical Centre of Iran (SCI), the country’s unemployment rate in the last fiscal year (ended March 20) stood at 12.4%, 1.4% up on the previous year. ​However, the actual unemployment rate is likely to be higher than that given methodology which means that if a person has just one hour of work a week officials count them as employed.
Youth unemployment (covering the 15-29 age range), ​stands at least twice the general joblessness rate,​ according to latest available data, while university graduate unemployment is thought to be around 40%.​ ​Despite the many times the government has stressed the need to boost employment, overall youth unemployment has risen more than 5% in the past three years.
22​ IRAN Country Report September 2020 www.intellinews.com