Iran Faces Severe Economic Crisis Amid Job Losses and Inflation

• •Iran's economy may contract by 25%, risking 1.4 million job losses.
• •Inflation reached 89.8% in September 2026, worsening living conditions.
• •Protests are ongoing due to low wages and unpaid salaries amid economic turmoil.

Iran's economy is projected to contract by 25%, with up to 1.4 million workers potentially leaving the labor market by the end of the Iranian calendar year, according to Malek Hosseini, deputy minister for entrepreneurship and employment. The ongoing war has reportedly led to the loss of 700,000 jobs, with unofficial estimates suggesting the number could be as high as two million. The country is experiencing an Internet blackout that has hindered business operations since January 2026. Inflation has soared to 89.8% as of September 2026, exacerbating the cost of living crisis. Many workers in the informal sector lack protections and sufficient income, highlighting chronic issues in Iran's labor market. Protests have erupted over low wages and unpaid salaries, while the government is developing a public employment program without social security coverage. The economic situation is further complicated by the regime's financial support to Hezbollah amid domestic unrest.