Six weeks into the conflict, job losses are escalating across Iran as destroyed industrial facilities have brought production in key sectors to a standstill, hitting the nation's workers with devastating force. Over 93 million Iranians now live under the shadow of a war that could reignite at any moment, with many fearing the difficult days ahead as economic stability crumbles.
Following peace talks between the United States and Iran in Pakistan, the US regime initiated a blockade of Iranian ports and ships in the Strait of Hormuz. This move purportedly aims to cut Iran's oil export revenues and prevent Tehran from imposing tolls on passage through the strategic sea route. The blockade has also severely disrupted the flow of goods to Iranian ports, exacerbating supply chain issues and deepening the economic crisis.
Trade unionist Ismail Abdi, in response to an inquiry from DW, wrote: "The continuation of the war — whether at the military level or in the form of blockades and regional tensions — puts the greatest pressure on ordinary people, especially workers, teachers, and wage earners." Abdi, a teacher and human rights activist, was imprisoned for several years on charges of "propaganda against the political system" after defending teachers' rights, and was released following international pressure, particularly from global trade unions. Since March 2025, he has lived in exile in Germany, continuing his advocacy for education rights and freedom of expression.
Abdi reported receiving shocking accounts of the working class's suffering under wartime conditions in Iran: "When factories, workshops, or service projects are shut down or scaled back, contract workers, day laborers, and those in informal employment are the first to suffer. This process weakens workers' bargaining power and pushes wages further toward an outright collapse." The war has compounded long-standing economic woes in Iran, including mismanagement, corruption, and sanctions, leading to a precarious situation for millions.
Iranian government spokesperson Fatemeh Mohadscherani, in an April 14 interview with Russia's state news agency RIA Novosti, provided a preliminary estimate placing war damage at around €229 billion (approximately $270 billion). However, the full extent of the destruction to Iran's largest industrial facilities, which serve as economic engines, remains unknown. The Mobarakeh Steel Company in Isfahan was forced to halt operations entirely after a second US-Israeli attack, which the US and Israel claimed weakened Iran's military capabilities. Steel is a critical raw material for military goods like missiles, drones, and ships, but it also plays a vital role in civilian industries, including automotive supply chains, household appliance production, and construction.
The steel industry is a major driver of Iran's economy, with the World Steel Association ranking Iran among the world's top 10 steel producers in 2025, exporting about 31.8 million tons annually and generating $860 million in export revenues from March 2025 to January 2026. The production suspension has sent thousands of workers home, with at least 10,000 in the steel sector being day laborers, and risks triggering a chain reaction that could force dependent companies to also halt operations.
Energy strategist Umud Shokri, a senior visiting fellow at George Mason University, warned that attacks on petrochemical plants will have massive repercussions on the labor market. Strikes on major hubs in Asaluyeh (South Pars), Mahshahr, and Shiraz caused significant damage, idling numerous facilities. In industrial centers like Mahshahr, where over 30,000 people are employed, many now face sudden job losses and wage cuts. Shokri noted: "The damage extends far beyond the facilities themselves, affecting supply chains, state revenues, and people's livelihoods." He added that restoring a key hub like Mahshahr could take around two years under optimal conditions, requiring improved access to foreign technology, capital, spare parts, and technical know-how — conditions scarcely attainable under the current sanctions regime imposed by the US and its allies.
Job losses in the industrial sector have already created widespread insecurity. On April 14, the Iranian Labour News Agency (ILNA) dismissed all its journalists, shifting them to freelance contracts, and reports indicate mass layoffs in other companies, including digital services platforms like Snapp, often called the "Iranian Uber." Despite ongoing internet restrictions imposed by authorities since the war's start to curb potential protests, such services continue to operate, but reduced mobility and affordability have decreased usage.
Abdi highlighted the broader impact: "Due to internet restrictions alone, thousands of freelancers, programmers, and content producers have lost their ability to work. They are now being pushed back into the traditional, already fragile labor market. In the short term, this situation leads to falling real incomes and growing poverty among workers. In the long term, there is a risk of an exploited, less skilled, and more dependent society emerging." He emphasized that the war must be ended before its human and social costs become irreversible, yet little attention seems paid to the Iranian population by either the Islamic Republic's leadership, focused on maintaining power, or the US president, despite his alleged promises of support.
From the war's outbreak on February 28 until a fragile ceasefire on April 8, the US-based human rights organization HRANA reported 3,636 deaths in Iran, including 1,701 civilians, with at least 254 children among them. This grim toll underscores the human cost of a conflict that continues to devastate Iran's economy and society, with workers bearing the brunt of the suffering amid geopolitical maneuvers by external powers.
Source: www.dw.com