Tehran, Iran – A growing sense of economic hardship is gripping many Iranians, with a significant portion facing limited employment opportunities following the imposition of a US naval blockade of Iranian ports. A resident named Saeed, a 26-year-old elementary school teacher, expresses dismay at the lack of viable employment prospects, stating, ‘You take one look at the condition of job postings online or in person, and you will understand why some young people feel like it’s not even worth going out for work.’
This concern is echoed by numerous individuals, including cashiers, salespeople, and teachers, who report earning a meager monthly salary of less than 200 million rials ($107 at the current exchange rate), with some jobs even falling below the basic minimum wage of around 166 million rials ($88). For example, a worker earning minimum wage plus government support can consume approximately 10% of their monthly income, while a 10kg (22lb) bag of Iranian rice can absorb more than one-fifth of their total wages.
The government’s recent approval of a 60-percent increase in the basic minimum wage in March, despite risking inflation, has exacerbated the economic situation. The estimated cost of a subsistence package for an average 3.3-person household in July was calculated at 430 million rials ($230), a stark contrast to the cost of a similar package for a 10kg (22lb) bag of Iranian rice.
Furthermore, the war with the United States and its naval blockade of Iranian ports, coupled with two state-imposed internet shutdowns, including a nationwide protest in January, have compounded the country’s systemic woes stemming from decades of corruption and mismanagement, alongside sanctions imposed by the West. Millions of Iranians are struggling to maintain their livelihoods, with unemployment figures reaching a staggering 23.4 percent in the spring, up 3.7 percent year-on-year, according to the Statistical Center of Iran’s latest report released at the end of July.
Food inflation has surged to over 128 percent compared with a year earlier, with oils and fats exceeding 261 percent, milk, cheese, and eggs at 147 percent, and meat and poultry at 145 percent. The situation is particularly acute for young people, who face significant challenges in securing jobs and opportunities.
Yashar, a 38-year-old co-owner of a grocery shop in Lahijan with his mother, notes, ‘From the outside it might seem like we’re well-off, but to us, it feels the opposite because the rent and my mother’s pension can barely keep up with the basic costs, let alone any extra purchases or savings.’
President Masoud Pezeshkian acknowledged the economic impact, stating that the war and the US naval blockade have raised costs for his government, adding that they are seriously considering significantly raising the price of petrol, but has been wary since previous price hikes have contributed to nationwide protests.
Despite the government’s efforts to find diplomatic solutions with Washington, the Iranian economy remains far from collapse, despite more than five months of war. The country’s resource-rich economy, which has historically relied on oil exports, is now facing significant challenges due to sanctions and the ongoing conflict, impacting the livelihoods of millions of Iranians.
Ladan, a 28-year-old who works in an office job in Tehran but also runs an online shop selling necklaces, says the hustle at times seems pointless because it offers no real prospects of sustained growth. She added, ‘I’m so sick and tired of everything. But even though I live with my parents and don’t have to pay rent, I can’t even buy myself a Pride because, at the end of the day, I’m earning in rials.’
The economic situation continues to worsen, with many Iranians facing hardship and uncertainty as the country navigates a complex geopolitical landscape.
The statistical center reported that inflation was 88 percent year-on-year, with food inflation exceeding 128 percent compared to the same period in 2025. The country’s economy is still far from collapse, though, despite the ongoing war and the impact of sanctions.
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Source: Al Jazeera
