Iran's Workforce Crippled by War: Over Two Million Job Losses Reported

Sun Jul 12 2026 08:49:00 GMT+0000 (Coordinated Universal Time)

The ongoing conflict between Iran and international forces has resulted in unprecedented job losses, affecting a wide range of sectors and intensifying the nation's economic downturn.

Iran faces an economic crisis as over two million people have lost their jobs due to the ongoing conflict with the US and Israel. The war has led to massive layoffs across various industries, decreased consumer spending, and an internet blackout that has adversely affected the tech sector. With inflation surpassing 50%, the impacts of the war are felt deeply in daily life as normalcy becomes increasingly unattainable for millions of Iranians.

Iran has been hit by a massive wave of redundancies, both directly and indirectly as a result of the conflict with the US and Israel.

Its Deputy Work and Social Security Minister, Gholamhossein Mohammadi, said two days ago that two million people had lost their jobs because of the war.

The widespread lay-offs are one of the biggest topics of conversation among ordinary Iranians on social media. Employers and government officials euphemistically refer to it as balancing the workforce.

The impact goes far beyond factories closed down after being hit by air strikes. It also includes other manufacturers, retailers, import and export business, and the digital sector.

Many users have noted changes in their daily lives, such as emptier metros and reduced traffic, pointing to decreased economic activity.

The war has negatively impacted consumer spending, leading to cuts in sectors beyond essentials, such as tourism, restaurants, and retail.

Additionally, the Iranian authorities’ internet blackout since the war began has crippled the tech sector. Officials claim it aims to enhance security but has disrupted the livelihoods of many, especially women who relied on social media platforms for their businesses.

Economically, each day of internet blackout costs the Iranian economy an estimated $35 million, totaling more than $1.8 billion during the 52 days of disruption since the conflict began.

Furthermore, media outlets have also been impacted, leading to layoffs in journalism, even as demand for reliable news surges due to the conflict.

The conflict has taken a toll on major industries as well, with significant layoffs reported in petrochemical and steel production, which have affected many related sectors.

Employers are taking measures like forced unpaid leaves or redundancies with promises to rehire when conditions improve, yet the pressure mounts with the official inflation rate exceeding 50% as of March 2026.

As economic hardships deepen, particularly due to ongoing international sanctions and potential resumption of hostilities, daily life for Iranians is becoming increasingly precarious.