Sobering Economic Data Released by New Government in Tehran

After years of presentation of rosy economic numbers by Ahmadinejad and his ministers, the new Rouhani administration is releasing numbers that point to a much worse economic conditions in the country. Today, the new Interior Minister Abdulreza Rahmani Fazli, who is in charge of the municipalities, told reporters that 70 percent of the country’s municipalities are “bankrupt.”

“Because revenues could not cover the costs, 70% of the country’s municipalities are bankrupt,” said Rahmani Fazli. “In consideration of the weakening of the economic condition, increase in prices, poor management at large and low productivity, the municipalities have encountered financial problems.” (ISNA/Al-Monitor, 3 September)

In a related news, the semi-official news agency Mehr reported today that according to the latest poll, 43 percent of Tehran residents have someone in their family who is unemployed. Ahmadinejad had insisted that the unemployment rate was below 10 percent.

“The country will soon face 8 million people who are looking for work,” said the new economic minister. (Mehr/Al-Monitor, 3 September)

Photo credit: ISNA Website announcing that 70% of Iran's municipalities are bankrupt. (ISNA/Al-Monitor, 3 September) 

Unemployment Rate

The Iranian government’s Center for Statistics today confirmed its earlier report that the country’s unemployment rate had hit 15 percent in Spring 2010, as compared to 11 percent a year ago [Donya-e Eqtesad, 23 October].

Iran’s Unemployment Rate Jumps to 15 Percent

Iran’s unemployment rate has reached 15 percent in the quarter ending 21 June, a jump of 4 percentage points over the same period last year. The government-owned Statistics Center of Iran that released the unexpectedly high rate of unemployment growth said in a statement today in Tehran that recent draught in some parts of Iran was a contributing factor. The government’s unemployment figures are not verified by independent sources.

Labor Unions Under Fire

Mahmoud Osanloo, head of the Workers’ Syndicate of Tehran Bus Company, was abducted near his house on 10 July by plainclothesmen, presumably from the Ministry of Intelligence, and has not been heard from since.

Since Ahmadinejad’s election in 2005, his government has begun to directly control union activities in Iran. Although Iran is a member of ILO, the Geneva-based International Labor Organization, but the government has consistently violated ILO rules.

Ahmadinejad’s Ministry of Labor routinely opposes and suppresses strikes by trade unions, the pillar of ILO regulations. The Ministry even sends its own official as labor representatives to ILO meetings.

The country is facing high unemployment and low wages but the labor unions are not allowed to openly oppose the government’s policies or take direct action to safeguard their members’ interests.

ILNA, the news agency closely associated with the labor movement in Iran, was also banned by the government. The ninth government is proving to be one of the staunchest opponents of the labor movement in Iran.