Iran faces job loss and pension risks

The data indicates a deterioration in the conditions of workers in Iran due to the economic crises caused by war and sanctions. Approximately one million workers lost their social security records over the course of a year, while the industrial sector saw about 630,000 jobs disappear in the spring of 2026. The economic participation rate dropped to 40.7%, amid an increase in the unemployment rate to 9.1%. Many workers have shifted to temporary or informal jobs, such as app-based drivers or small trades, with the proportion of informal employment exceeding 56%. Additionally, the Social Security Organization relies on workers’ contributions to fund pensions, but it faces liquidity shortages, threatening the sustainability of the retirement insurance system and workers’ financial stability.

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