Iran's Workforce Shrank by 450,000 in Spring 1405 From a Year Earlier

According to Ecoiran, in a report published Friday, August 14, 2026 (23 Mordad 1405), based on the latest labor market data from Iran's Statistical Center for the spring 1405 quarter (roughly April to June 2026), the country's total employment fell by 450,000 from the same quarter last year to 24.67 million, the first decline in overall employment in five years of post pandemic growth. At the same time, the number of workers in underemployment, defined as working fewer than 44 hours a week for economic reasons while wanting more hours, rose by about 350,000 to 2.1 million; underemployment's share of total employment climbed from 6.6 percent in spring 1404 to 8.5 percent in spring 1405.

The report links the reversal to unprecedented economic uncertainty following two wars, a 12 day conflict and a 40 day conflict, and a wave of private sector layoffs. Reviewing the employment trend since spring 1397 (2018), Ecoiran noted that total employment first returned to its pre pandemic level of 24.75 million in spring 1403 (2024) and rose further to 25.12 million in spring 1404 (2025), before reversing in the current spring quarter.