The main resolution approved at the most recent meeting of Iran’s Supreme Employment Council was the creation of 1.85 million new jobs until the spring of 2023. The government is sceptical of this resolution since many government experts claim that, given the country’s economic circumstances, the government does not have the resources to make such a choice.
Covid19 has resulted in the loss of millions of job
One factor contributing to this suspicion is that, despite Iran being one of the worst-affected countries in the world, the coronavirus has resulted in the loss of more than two million jobs, according to government figures.
The service industry has accounted for nearly 54 percent of all jobs in the country over the last decade, and it has been the hardest hit by the coronavirus. Because of the coronavirus regulations, the tourism and service sectors are not functioning efficiently, and most retailers and supermarkets are seeing reduced visitation. As a result, the service sector has lost the majority of its jobs.
Due to a lack of an adequate vaccine, the situation is deteriorating without progress, while many Iranian healthcare officials are warning the government about the coronavirus pandemic’s sixth peak.
The government is unable to produce 2 million jobs
Analysts expect some of these jobs to resume once the coronavirus crisis is resolved, but this has nothing to do with the government’s claim of creating about 2 million jobs, and it is strange, but not surprising, that Iran’s government would use these figures to claim success in creating 2 million jobs.
According to market analyst Hamid Haj Esmaili, the government is unable to produce 2 million jobs because it lacks the necessary facilities, equipment, tools, fields, and space.
The reason for this is obvious: they tried it in the tenth government and failed miserably. As a result, they can’t say that the previous government created even one million jobs every year to use as a barometer for the current government’s success, and this hasn’t happened in Iran in the last decade.
The majority of the budget’s destinations are unclear.
The other concern is how much money will the government need to make this happen. This is despite the fact that the country is facing a massive budget deficit, and nothing has been designated as a fund for job creation in this year’s budget, and the majority of the budget’s destinations are unclear.
As a result, there is no funding for construction work, nor is there any investment to create jobs. Foreign investment is the second crucial factor to consider when it comes to employment development. This reality is inescapable for a country like Iran, which cannot create jobs without foreign investment. This will be unachievable in the future decade due to the regime’s plans.
International money transfers are difficult
Because of the sanctions and the regime’s reluctance to accept the FATF’s conditions, international money transfers are difficult for the dictatorship, and no one can invest in the country’s economy. The utilization of the country’s private sector is something that could be exploited but is not practical since there is no actual private sector in Iran; the only thing that exists is the so-called ‘government-run private sector,’ which is not in the country’s economic interests.
The other two factors that make such a thing difficult are bank imbalance, which is one of the sources of rising inflation, and liquidity, which has reached unprecedented levels. Something that is occurring as a result of the regime’s misguided economic policies and a brokerage system that has allowed unbridled corruption to flourish.