Iran Faces Mass Redundancies and Job Losses from 2026 War

Struggling to Survive: Millions of Iranian Jobs Lost to Conflict

Published: 22 April 2026. The English Chronicle Desk. The English Chronicle Online

The tentative ceasefire that settled over the Middle East last week has finally allowed for a grim accounting of the economic devastation within Iran. After six weeks of intense bombardment by United States and Israeli forces, the Islamic Republic is facing a labor crisis of unprecedented proportions. New data from international monitors and local industrial bodies suggest that the war has not only shattered infrastructure but has effectively dismantled the country’s modern economy, leading to mass redundancies that have put an estimated 10 to 12 million jobs—nearly half of the national workforce—at immediate risk.

The collapse of the labor market is most visible in Iran’s industrial heartlands. The Mobarakeh Steel Company in Isfahan, once a crown jewel of the nation’s export economy and one of the world’s top ten steel producers, was forced to halt all operations following targeted strikes in late March. The closure has sent tens of thousands of workers home, including 10,000 day laborers who now find themselves without any form of income or social safety net. This industrial paralysis has triggered a catastrophic chain reaction; without steel and petrochemical feedstocks, thousands of downstream firms specializing in everything from automotive parts to household appliances have been forced to shutter their doors, leaving millions of factory workers redundant.

The scale of the “immiseration,” as described by regional analysts, is deepened by the strategic nature of the military campaign. By targeting over 23,000 factories and firms, as well as critical ports and transportation networks, the US and Israeli forces have successfully severed the supply chains that sustain daily life. The result is a nation where inflation has hit a 70-year high of 72%, and the cost of a staple food basket has surged by 134% compared to last year. In Tehran, residents describe a haunting reality where shop shelves remain stocked with basic goods only because the newly unemployed population can no longer afford to buy them.

Beyond the formal sector, the war has obliterated the livelihoods of the informal and gig economies. Prolonged digital blackouts, intended to disrupt military communications, have simultaneously crippled the incomes of freelancers and small digital businesses. Furthermore, the Iranian government’s recent decision to scale back promises of reconstruction aid has left thousands of war-hit homeowners and small business owners feeling abandoned. With the national currency having lost half its value in a single year, the 3.5 to 4.1 million Iranians already dragged below the poverty line by the conflict represent just the first wave of a much larger humanitarian disaster.

As the international community debates the strategic “victories” of the war, the people of Iran are left to navigate a landscape of ruined schools, hospitals, and desalination plants. Economists at the United Nations Development Programme warn that even if the ceasefire holds, the Iranian economy could contract by as much as 10.4% this year. For the millions of workers now facing redundancy, the “reproach of the past” is less a political concern than a daily struggle for survival in a country where the future, for many, has been effectively switched off.