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Unemployment, hunger and deprivation: what Iran looks like today

After six weeks of war, more and more Iranians fear they will lose their jobs. Production in many places has been paralyzed, hundreds of thousands of workers have been affected.

Apr 18, 2026 10:01 132

Unemployment, hunger and deprivation: what Iran looks like today  - 1
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There are over 93 million people in Iran, and all of them are currently living in the shadow of war, which could flare up again at any moment.

After the failure of peace talks in Pakistan, the US imposed a blockade on the Strait of Hormuz - to cut off Iran's oil export revenues and prevent the country from collecting fees from ships passing through the strait. The blockade also means that no goods are reaching Iranian ports.

The working class is on the brink of survival

"The continuation of the war is putting the greatest pressure on ordinary people, especially workers, teachers and other representatives of the working class," trade unionist Ismail Abdi told DW. Abdi has been living in exile in Germany for a year after being persecuted in Iran and spending many years in prison. Because of defending the rights of teachers in his home country, he was accused of "propaganda against the political system".

"In recent weeks, we have received brutal reports of the blows that the working class is suffering under war conditions," the man said. "When factories, workshops and establishments close or limit their operations, the brunt falls on contract workers, day laborers and the informally employed."

The war has had a devastating impact on Iran's economy, which has long suffered from mismanagement, corruption and sanctions. Tehran has already put the damage at around 229 billion euros. This is a preliminary estimate, said Iranian government spokeswoman Fatemeh Mohajerani. The real extent of the damage to industry cannot yet be calculated.

Thousands remain unemployed

"Mobarakeh Steel" in Isfahan is the country's largest steel producer. The company had to completely shut down after the second US-Israeli strike on its facilities. The US and Israel said their attacks had weakened Iran's military capabilities. Steel is a key raw material for military production - for example, missiles, drones and ships.

At the same time, however, it plays a crucial role in other industries - the production of cars, household appliances, as well as packaging and cans. Steel is also extremely important for construction.

Steel production is one of the pillars of the Iranian economy. According to the World Steel Association, in 2025 Iran was among the ten largest steel producers in the world - along with China, the USA and Germany, exporting about 31.8 million tons annually. Revenues between March 2025 and January 2026 alone amounted to 741 million euros. After the cessation of activity, thousands of employees were left without jobs - without knowing for how long. At least 10,000 people in the steel industry worked on a wage basis. In addition, the shutdown of production could cause a chain reaction and dozens of other companies that depend on it to be forced to shut down in turn.

Recovery will take years

The bombing of petrochemical facilities will also have a serious impact on the labor market, notes energy expert Omoud Shokri. Attacks on important centers of the petrochemical industry in a number of places have already caused significant damage and led to the shutdown of many facilities, says the expert from "George Mason" University in the United States.

In industrial centers like Mahshahr alone, where more than 30,000 people work, many have lost their jobs or had their salaries reduced, Shokri also explained to DW. He added: "The damage goes far beyond the damage to facilities and also affects supply chains, government revenues and the standard of living of the population."

According to the expert, the reconstruction of Mahshahr will take about two years. And to do this, the country will need access to foreign technology, capital, spare parts and know-how - prerequisites that are generally impossible in the context of current sanctions.

Poverty is increasing

All sectors are affected. On April 14, the Iranian news agency ILNA fired its journalists and transferred them to freelance work. Many other companies have also started mass layoffs. One example is the digital services sector with platforms such as Snapp, often described as the Iranian Uber. These services operate despite the government-imposed internet blockade since the beginning of the war. However, because of the war, few people travel around the country because they do not have the means.

"Just because of the restrictions on the internet, thousands of freelancers, programmers and content creators have lost their ability to work. And now they have to return to the traditional and already weak labor market," says Ismail Abdi.

He warns that the war will lead to increasing poverty and increasing insecurity for vulnerable groups. "This war must end before its human and social cost becomes irreversible," he warns.

It seems that almost no one is thinking about the Iranian population - neither the leadership of the Islamic Republic, which wants to stay in power, nor the American president, who promised support for the opposition as early as January. From the outbreak of the war on February 28 to April 8, when a fragile ceasefire was agreed, according to the American human rights organization HRANA, 3,636 people were killed in Iran. 1,701 of them were civilians, including at least 254 children.

Author: Shabnam von Hein