Page 8 - Iran OUTLOOK 2025

Conversely, 38.4% of workers reported working more than 49 hours per week.
The figures come amid broader economic challenges facing Iran, though officials point to the declining unemployment rate as a sign of labour market resilience.
Iran's unemployment rate had fallen to 7.6% this autumn from 10.6% in 2019, but the improvement masks a dramatic exodus of job seekers from the labour market rather than job creation, according to official data that reveals deepening economic challenges.
The Parliament Research Centre had previously warned that actual unemployment is 2.5 times higher than official figures, with young people increasingly giving up job hunting. World Bank data confirms a decrease in Iran's employment-to-population ratio over the past four years.
The situation is particularly dire for educated youth and women. The report shows 43% of job seekers hold higher education degrees, highlighting significant challenges for graduates. Female labour participation remains extremely low at 11.4%, meaning about 91% of women over 15 are economically inactive.
Regional comparisons underscore Iran's employment crisis. Only Iraq and Yemen show worse employment figures among regional countries. Female employment rates reach 57% in Qatar, 49% in the UAE and have risen to 29% in Saudi Arabia – 2.5 times Iran's rate.
Economic indicators paint a broader picture of hardship. Iran ranks among the region's highest in the "misery index" combining unemployment and inflation rates. Wage disparities are severe, with average incomes in Saudi Arabia, the UAE and Qatar being 7, 13 and 18 times higher respectively than in Iran.
Despite these challenges, President Raisi's administration has increased minimum wages by only 20% for the coming fiscal year, less than half the annual inflation rate. The gender pay gap remains significant at 23% in public sector jobs and 36% in private employment, according to IMF data.
The World Bank estimates only 60% of employed Iranian women receive wages, with many working unpaid in family businesses, particularly agriculture. This contrasts sharply with Qatar (100%), UAE (94%) and Saudi Arabia (88%).
The data suggest Iran's apparent unemployment improvement reflects economic distress rather than recovery, with millions leaving the
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