Page 21 - IRANRptFeb21

$305mn for unemployed workers hit by COVID-19 turmoil
Unemployment rate estimated at 11.8% in 2020
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. 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. 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 stood at 9.8% y/y in the second quarter of 2020, down from 10.6% y/y in the previous quarter. ​Iran's unemployment rate was estimated to reach 11.8% of the total labor force in 2020. The unemployment rate has been above ​10% ​for the last 10 years, and this rate is estimated to have peaked in 2014 when it reached 14%.
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.
21​ IRAN Country Report February 2021 www.intellinews.com