Iranians Frustrated with Government over Sluggish Economy

Iranians grow more impatient as unemployment and low-wage jobs burden the population, according to The Guardian. Despite the Iran nuclear deal, many officials believe it may not be enough to turn things around economically. In October, ministers from defense, industry and welfare sent a public letter to President Hassan Rouhani, warning him that current circumstances could lead to an economic crisis.

According to government data, 23 out of 64 million Iranians are unemployed, with seven million out of the 23 million stuck in low-wage jobs that do not yield a suitable living.

Iranians grow more impatient as unemployment and low-wage jobs burden the population, according to The Guardian. Despite the Iran nuclear deal, many officials believe it may not be enough to turn things around economically. In October, ministers from defense, industry and welfare sent a public letter to President Hassan Rouhani, warning him that current circumstances could lead to an economic crisis.

According to government data, 23 out of 64 million Iranians are unemployed, with seven million out of the 23 million stuck in low-wage jobs that do not yield a suitable living.

The president ignored the letter sent from cabinet officials, believing the economy is on the verge of a downturn. Rouhani is responsible for improving the economy and lowering inflation, but his lack of awareness on how bad the economy is may spell his downfall, and with Supreme Leader Ali Khamenei’s open disapproval of the president’s reformist approach, his future ambitions could be on the chopping block sooner rather than later.

He achieved a monumental feat with the nuclear deal, but many Iranians, including some public officials, are skeptical of the agreement. Under the terms of the deal, Iran will stop its nuclear weapons program in return for such measures as removing sanctions and trade integration into the world community. However, sanctions based on human rights violations will remain in place.

Nuclear Deal Too Little Too Late?

The deal with six other nations came in July, and Iran has already begun taking centrifuges offline. However, the deal may have come too late because the economy is in a virtual standstill, as such sectors as real estate and finance remain dead in the water, and people withhold spending amid an uncertain climate.

Supporters of the deal note that the deal is fresh and needs more time to take effect, but the anger and frustration boils over. There is no doubt that the deal will eventually benefit Iran, but how much remains uncertain, and the government faces political and social ramifications if things do not improve.

Core Problems

First, Iran has a high youth population, which is why such a high unemployment rate within this demographic is unsustainable in the long run. The government plans to create 8.5 million jobs over the next decade, with the help of foreign investment, notes the Wharton School. Many foreign firms, especially German companies, are eager to reestablish business ties with Iran, but the business world must contend with human rights sanctions that will continue to be a barrier to economic progress.

Aside from the human rights blemish, Iran also faces issues with oil revenue because of the low-price atmosphere, and many energy companies may not be receptive to future investment, highlighting the need for diversification strategies that have worked in other oil-bearing nations in the region.