Editing Economy of Iran (section)

== Labor force ==
{{See also|Iranian labor law|Taxation in Iran|Education in Iran|Iran's brain drain}}
{{bar box
|title=Employment by sectors (2003)<ref name="Ministry of Commerce" />
|titlebar=#DDD
|float=right
|left1=sector
|right2=persons
|width=350px
|bars=
{{bar pixel|[[Agriculture in Iran|Agriculture]]|red|21.8313||4,009,155}}
{{bar pixel|[[Healthcare in Iran|Social, personal and household services]] & [[Government of Iran|Public service]]|green|21.4238||3,934,317}}
{{bar pixel|[[Mining in Iran|Mining]] & [[Industry of Iran|Manufacturing]]|blue|16.4427||3,019,576}}
{{bar pixel|[[Tourism in Iran|Trade, restaurant & hotel]]|orange|15.3160||2,820,927}}
{{bar pixel|[[Construction in Iran|Construction & Real estate services]]|red|13.0424||2,395,144}}
{{bar pixel|[[Transport in Iran|Transportation, warehousing]] & [[Communications in Iran|Telecommunications]]|purple|8.3935||1,541,401}}
{{bar pixel|[[Banking in Iran|Financial & monetary institutions services]]|grey|1.9949||366,352}}
{{bar pixel|[[Petroleum industry in Iran|Oil & gas]]|yellow|0.7449||136,803}}
{{bar pixel|[[List of power stations in Iran|Electricity]]|black|0.4194||77,026}}
{{bar pixel|[[Water supply and sanitation in Iran|Water]]|turquoise|0.3458||63,510}}
|caption= Labor force: 18,364,211 (total)<br /><small>''note:'' Lack of skilled labor<ref name=UNIDO1 /></small>
}}

After the revolution, the government established a national [[Education in Iran|education system]] that improved adult literacy rates. In 2008, 85% of the adult population was literate, well ahead of the regional average of 62%.<ref name=unescolit>{{cite web |title = National adult literacy rates (15+), youth literacy rates (15–24) and elderly literacy rates (65+) |url = http://stats.uis.unesco.org/unesco/TableViewer/tableView.aspx?ReportId=210 |publisher = UNESCO Institute for Statistics |access-date = December 18, 2013 |archive-date = October 29, 2013 |archive-url = https://web.archive.org/web/20131029183908/http://stats.uis.unesco.org/unesco/TableViewer/tableView.aspx?ReportId=210 }}</ref><ref>{{Cite book |last1 = Nash |first1 = Jason John |url = http://www.thebusinessyear.com/tby_demo//publications.php?art_id=113&type=sector&sector=healtheducation |last2 = Sasmaz |first2 = Aytng |title = The Business Year 2011: Iran |place = London, U.K. |publisher = The Business Year |date = January 2011 |page = 232 |isbn = 978-1-908180-00-1 |access-date = January 14, 2012 }} {{dead link|date=January 2021|bot=medic}}{{cbignore|bot=medic}}</ref> The [[Human Development Index]] was 0.749 in 2013, placing Iran in the "high human development" bracket.<ref name="UNDP2014" />

In 2008, annual economic growth of above 5% was necessary to absorb the 750,000 new labor force entrants each year.<ref name="jobs">{{cite web|url=http://iran-daily.com/1387/3157/html/index.htm |title=Gov't Set to Change Economic Course |access-date=July 6, 2008 |url-status=bot: unknown |archive-url=https://web.archive.org/web/20090505011108/http://iran-daily.com/1387/3157/html/index.htm |archive-date=May 5, 2009 }}. ''Iran Daily'', June 24, 2008.</ref> In 2020, agriculture was 10% of GDP and employed 16% of the labor force.<ref name="CIAWFIR">{{cite web|url=https://www.cia.gov/the-world-factbook/countries/iran/|title=MIDDLE EAST :: IRAN|website=CIA.gov|access-date=January 17, 2020}}</ref> In 2017, the [[industrial sector]], which includes mining, manufacturing, and construction, was 35% of GDP and employed 35% of the labor force.<ref name="CIAWFIR"/> In 2009, mineral products, [[Ministry of Petroleum of Iran|notably petroleum]], accounted for 80% of Iran's export revenues, even though mining employs less than 1% of the labor force.<ref name="Ministry of Commerce" />

In 2004, the service sector ranked as the largest contributor to GDP, at 48% of the economy, and employed 44% of workers.<ref name="CIA" /> [[Women in Iran|Women]] made up 33% of the labor force in 2005.<ref>[http://www.payvand.com/news/09/feb/1110.html Valentine M. Moghadam (2009). Where Are Iran's Working Women?] {{Webarchive|url=https://web.archive.org/web/20130501230508/http://www.payvand.com/news/09/feb/1110.html |date=May 1, 2013 }}. The Middle East Institute. Retrieved February 3, 2011.</ref> Youth unemployment, aged 15–24, was 29.1% in 2012, resulting in significant [[Iran's brain drain|brain drain]].<ref name="CIA" /><ref>Emanuele Ottolenghi: [https://www.wsj.com/articles/SB10000872396390443570904577544510656462718 Toppling Iran's Unsteady Regime]. ''The Wall Street Journal'', July 23, 2012. Retrieved July 24, 2012.</ref> In 2016, according to the government, some 40% of the workforce in the [[public sector]] are either in excess or incompetent.<ref>[https://financialtribune.com/articles/economy-domestic-economy/56341/bloated-public-sector-criticized Bloated Public Sector Criticized]. ''Financial Tribune'', December 28, 2016. Retrieved December 29, 2016.</ref>

=== Labor force and the public sector ===
The Islamic Republic of Iran employs around 8 million individuals, of whom roughly 3 million hold formal positions within the three branches of government, the armed forces, and leadership institutions. These roles encompass bureaucratic staff, civil servants, and uniformed military personnel.<ref name="auto1">{{Cite web |last=Anvari |first=Amirhadi |title=The 8 million Iranians on the Islamic Republic’s payroll |url=https://content.iranintl.com/8-million-iranians-on-islamic-republics-payroll/index.html#group-section-State-Sphere-CJ2x4ujMRs |access-date=2025-02-06 |website=content.iranintl.com |language=en}}</ref>

Beyond the formal government structure, approximately 2.3 million individuals are employed in quasi-governmental organizations, including state-owned enterprises, national banks, municipalities, and the [[Islamic Azad University]]. Additionally, about 2.5 million pensioners receive state stipends, often distributed through the Relief Committee, a government-controlled charitable organization. As a result, nearly one in ten Iranian citizens maintain a regular financial connection to the state.<ref name="auto1"/>

=== Personal income and poverty ===
{{See also|Social class in Iran|Iranian subsidy reform plan#Objectives|Privatization in Iran#"Justice shares" plan|Construction in Iran#Mehr Housing Scheme|l2=Targeted social assistance reform|l3="Justice shares"|l4=Mehr housing scheme}}
[[File:Iran unemployement min-wage Per-capita-income-growth.jpg|thumb|Unemployment rate, per-capita income growth and minimum wage, 2000–2009]]
[[File:Ira world GNI percapita.PNG|thumb|283px|[[List of countries by GNI (nominal, Atlas method) per capita|GNI per capita]]:<br />{{legend|green|Iran in 2010: $4,520 nominal. 2012: $13,000 PPP.<ref name=Mehr1 />}} {{legend|#0000FF|Higher GNI per capita compared to Iran}} {{legend|#FF8040|Lower GNI per capita compared to Iran}}]]

Iran is classed as a [[List of countries by GDP (PPP) per capita|middle income country]] and has made significant progress in provision of health and education services in the period covered by the [[Millennium Development Goals]] (MDGs). In 2010, Iran's average monthly income was about $500. The [[GNI per capita]] in 2012 was $13,000, by [[Purchasing power parity|PPP]].<ref name="CIA"/><ref name=Mehr1>[https://web.archive.org/web/20131015184439/http://www.irandailybrief.com/2012/05/11/economy-minister-per-capita-income-in-iran-has-surpassed-13000-dollars-per-year-17th-largest-economy-in-the-world-in-2012/ Iran's per capita income exceeds $13,000: minister]. Mehr News Agency, May 8, 2012. Retrieved April 18, 2014.</ref><ref name=Aljazeera>{{cite video |date = December 2010 |title = Inside Story{{Snd}} Iran's economic surgery |url = https://www.youtube.com/watch?v=nOe3UbEAWg0 |medium = Motion picture |publisher = AljazeeraEnglish |location = Iran |access-date = December 28, 2010 |time = 02:50 |quote = in a country where the average income is around 500 dollars}}</ref><ref name=GNI>[http://data.worldbank.org/country/iran-islamic-republic Iran Data by country: Iran, Islamic Rep] {{webarchive |url=https://web.archive.org/web/20130620140232/http://data.worldbank.org/country/iran-islamic-republic |date=June 20, 2013 }}. World Bank (2011). Retrieved February 5, 2011.</ref> A minimum national wage applies to each sector of activity as defined by the Supreme Labor Council. In 2009 this was about $263 per month ($3,156 per year).<ref>[http://payvand.com/news/09/nov/1011.html Iran's Poor Face a Logjam in the Labyrinths of Work] {{Webarchive|url=https://web.archive.org/web/20111002195324/http://payvand.com/news/09/nov/1011.html |date=October 2, 2011 }}. ILNA.ir, October 21, 2009. Retrieved January 24, 2010.</ref>

In 2001, approximately 20% of household consumption was spent on food, 32% on fuel, 12% on health care and 8% on education.<ref>[http://www.nationsencyclopedia.com/Asia-and-Oceania/Iran-INCOME.html Iran – Income]. Encyclopedia of the Nations. Retrieved October 14, 2010.</ref> In 2015, Iranians [[Central Bank of Iran#Debit/credit cards|had little personal debt]].<ref>{{Cite journal |title = Western Companies See Potential in Reaching Iran's Consumers After Nuclear Deal |journal = Wall Street Journal |date = April 6, 2015 |first = Asa |last = Fitch |author2 = Nicolas Parasie |url = https://www.wsj.com/articles/western-companies-see-potential-in-reaching-irans-consumers-after-nuclear-deal-1428313107?cb=logged0.5079263212005186 |access-date = April 10, 2015 }}</ref> In 2007, seventy percent of Iranians owned [[Construction industry of Iran|their homes]].<ref name=ID1>{{cite web|url=http://iran-daily.com/1386/2812/html/economy.htm |title=70% of Population Own Homes |access-date=April 9, 2007 |url-status=bot: unknown |archive-url=https://web.archive.org/web/20080219133453/http://iran-daily.com/1386/2812/html/economy.htm |archive-date=February 19, 2008 }}. ''Iran Daily'', April 9, 2007.</ref>

In 2018–2019, the median household income of Iran was 434,905,000 rials (a bit above $3,300), an 18.6% rise from 2017 to 2018, when median household income was about 366,700,000 rials.{{citation needed|date=July 2021}} Adjusted for [[purchasing power parity]], Iran's 2017–2018 median income was equivalent to about $28,647 (2017 conversion factor, private consumption, LCU).<ref>[https://data.worldbank.org/indicator/PA.NUS.PRVT.PP?locations=IR PPP conversion factor, private consumption (LCU per international $).] World Bank. Accessed September 21, 2019. Conversion factor was 12800.39.</ref>

As the average Iranian household size is 3.5, this puts median personal income at around $8,185.<ref>[https://www.un.org/en/development/desa/population/publications/pdf/ageing/household_size_and_composition_around_the_world_2017_data_booklet.pdf Household size and Composition Around the World 2017.] The United Nations. Page 18.</ref> While Iran rates relatively well on income, [[List of countries by wealth per adult|median wealth]] is very low for its income level, on par with Vietnam or Djibouti, indicating a high level of spending. According to SCI, median household spending in 2018 was 393,227,000 rials, or 90.5% of the median household income of 434,905,000 rials.{{citation needed|date=July 2021}}

[[Iranian Revolution|After the Revolution]], the composition of the [[Social class in Iran#The middle class|middle class in Iran]] did not change significantly, but its size doubled from about 15% of the population in 1979 to more than 32% in 2000.<ref name="LOC8">{{Cite book |last1 = Curtis |first1 = Glenn |url = https://archive.org/details/irancountrystudy00curt_2/page/104 |last2 = Hooglund |first2 = Eric |title = Iran, a country study |place = Washington, D.C., USA |publisher = [[Library of Congress]] |date = April 2008 |page = [https://archive.org/details/irancountrystudy00curt_2/page/104 104] |isbn = 978-0-8444-1187-3 }}</ref> In 2008, the official poverty line in [[Tehran]] for 2008 was $9,612. The national average poverty line was $4,932.<ref>{{Cite book|url=https://books.google.com/books?id=1HORBQAAQBAJ&dq=The+official+poverty+line+in+Tehran+for+the+year+ending+March+20%2C+2008%2C+was+%249%2C612%2C+while+the+national+average+poverty+line+was+%244%2C932&pg=PA233|title=Iran Country Study Guide Volume 1 Strategic Information and Developments|date=March 3, 2012|publisher=Lulu.com |isbn=978-1-4387-7462-6}}</ref> In 2010, Iran's Department of Statistics announced that 10 million Iranians live under the [[Absolute poverty|absolute poverty line]] and 30 million live under the [[Relative poverty|relative poverty line]].<ref>[http://www.payvand.com/news/10/may/1316.html Ten Million Iranians Under "Absolute Poverty Line"] {{Webarchive|url=https://web.archive.org/web/20120105030221/http://www.payvand.com/news/10/may/1316.html |date=January 5, 2012 }}. Radio Zamaneh, May 29, 2010. Retrieved May 28, 2010.</ref>

=== State of income inequality ===
According the inequality dataset of the [[World Bank|world bank]], in 2002 the [[Gini coefficient|Gini index]] in Iran was 34.8, a level that is considered to be quite modest. However, closer data analysis reveals significant wealth concentration, with the top 10% of earners holding 52.7% of the national income - a larger share than in the [[United States]] or [[European countries]].<ref>{{Cite web |title=World |url=https://wid.world/world/#sptinc_p90p100_z/US;FR;DE;CN;ZA;GB;WO/last/eu/k/p/yearly/s/false/24.722500000000004/80/curve/false/country |access-date=2025-02-06 |website=WID - World Inequality Database |language=en-US}}</ref>

Economic disparity is also evident within the public sector'''.''' Many Iranian state employees face significant financial hardship, with salaries as low as $200 per month, however, some [[Islamic Consultative Assembly|Majlis]] representatives receive monthly salaries ranging from 200 to 250 million tomans (or more than $59,172 according to the exchange rate of January 2024).<ref>{{Cite web |title=Most Accurate Exchange Rates |url=https://www.exchange-rates.org/ |access-date=2025-02-06 |website=www.exchange-rates.org |language=en}}</ref> Additionally, they receive extra bonuses during religious holidays and on "Parliament Day" and "Employee Day," along with [[perquisite]]s like [[Nowruz]] and [[Yaldā Night|Yalda Night]] snacks.<ref>{{Cite web |last=Taghati |first=Amir |date=2024-02-16 |title=Leaked Documents Expose Iranian MPs' Lucrative Salaries Amidst Economic Hardship |url=http://www.ncr-iran.org/en/news/exclusive-report/leaked-documents-expose-iranian-mps-lucrative-salaries-amidst-economic-hardship/ |access-date=2025-02-06 |website=NCRI |language=en-US}}</ref>

Inequality is also evident in access to essential services such as [[Tehran water shortage inequality|water supply]]. In [[Tehran]] impoverished districts struggle with inadequate water provision and hazardous water quality, while affluent areas, housing many of the nation's economic elite, including high-ranking government and [[Islamic Revolutionary Guard Corps|Islamic Revolutionary Guard Corps (IRGC)]] officials, are largely unaffected by these shortages.<ref>{{Cite journal |last=Nasri Roodsari |first=Elmira |last2=Hoseini |first2=Parian |date=2021 |title=An assessment of the correlation between urban green space supply and socio-economic disparities of Tehran districts—Iran |url=https://www.econstor.eu/handle/10419/287117 |journal=Environment, Development and Sustainability |volume=24 |issue=11 |pages=12867–12882 |doi=10.1007/s10668-021-01970-4 |issn=1573-2975|hdl=10419/287117 |hdl-access=free }}</ref>

=== Social security ===
{{See also|Social Security Organization|Healthcare in Iran}}

Although Iran does not offer universal social protection, in 1996, the Iranian Center for Statistics estimated that more than 73% of the Iranian population was covered by social security.<ref name="Irandev">{{Cite web|title=Iran: Country Brief |publisher=[[World Bank]] |year=2009 |url=http://go.worldbank.org/KQD2RP3RX0 |archive-url=http://webarchive.loc.gov/all/20110210062245/http://go.worldbank.org/KQD2RP3RX0 |archive-date=February 10, 2011 |access-date=July 12, 2009 }}</ref> Membership of the social security system for all employees is compulsory.<ref name="Labor">{{cite web |url = http://www.ilo.org/dyn/natlex/docs/WEBTEXT/21843/64830/E90IRN01.htm |title = ''Labour Code'' |access-date = March 1, 2009 |last = Rouznameh |first = Rasmi |year = 1990 |publisher = [[International Labour Organization]] }}</ref>

Social security ensures employee protection against unemployment, disease, old age and occupational accidents.<ref name=SSA /> In 2003, the government began to consolidate its welfare organizations to eliminate redundancy and inefficiency. In 2003 the minimum standard pension was 50% of the worker's earnings but no less than the minimum wage.<ref name=SSA /> Iran spent 22.5% of its 2003 national [[budget]] on [[social welfare]] programs of which more than 50% covered pension costs.<ref name=CBI2>{{cite web |url = http://www.cbi.ir/showitem/6650.aspx |title = Annual Review |publisher = [[Central Bank of Iran]] |date = December 2009 |access-date = May 10, 2010 |archive-date = June 18, 2011 |archive-url = https://web.archive.org/web/20110618061133/http://www.cbi.ir/showitem/6650.aspx }}</ref> Out of the 15,000 homeless in Iran in 2015, 5,000 were [[Women in Iran|women]].<ref>[http://www.payvand.com/news/15/jul/1076.html Women now comprise one-third of homeless Iranians] {{Webarchive|url=https://web.archive.org/web/20170917080550/http://www.payvand.com/news/15/jul/1076.html |date=September 17, 2017 }}. [[Radio Zamaneh]], July 12, 2015. Retrieved July 14, 2015.</ref>

Employees between the age of 18 and 65 years are covered by the social security system with financing shared between the employee (7% of salary), the employer (20–23%) and the state, which in turn supplements the employer contribution up to 3%.<ref>[https://www.socialsecurity.gov/policy/docs/progdesc/ssptw/2004-2005/asia/iran.html Social Security Programs Throughout the World: Asia and the Pacific]. [[Social Security Administration]], 2004. Retrieved March 14, 2014.</ref> Social security applies to self-employed workers, who voluntarily contribute between 12% and 18% of income depending on the protection sought.<ref name=SSA>[https://www.socialsecurity.gov/policy/docs/progdesc/ssptw/2004-2005/asia/iran.html Iran's entry]. U.S. Social Security Administration. Retrieved October 14, 2010.</ref> [[Civil Servants Pension Organization|Civil servants]], the regular military, law enforcement agencies, and IRGC have their own pension systems.<ref>[http://web.worldbank.org/external/default/main?pagePK=51187349&piPK=51189435&theSitePK=312943&menuPK=64187510&searchMenuPK=312997&theSitePK=312943&entityID=000160016_20031029121338&searchMenuPK=312997&theSitePK=312943 Iran – The pension system in Iran] {{webarchive |url=https://web.archive.org/web/20111130113548/http://web.worldbank.org/external/default/main?pagePK=51187349&piPK=51189435&theSitePK=312943&menuPK=64187510&searchMenuPK=312997&theSitePK=312943&entityID=000160016_20031029121338&searchMenuPK=312997&theSitePK=312943 |date=November 30, 2011 }}. World Bank (2003). Retrieved February 3, 2011.</ref>

=== Trade unions ===
{{See also|List of trade unions#Iran|l1=Trade unions in Iran}}

Although Iranian workers have a theoretical right to form labor unions, there is no union system in the country. Ostensible worker representation is provided by the [[Workers' House of the Islamic Republic of Iran|Workers' House]], a state-sponsored institution that attempts to challenge some state policies.<ref>[http://www.ilo.org/public/english/region/asro/bangkok/arm/irn.htm Iran's entry]. International Labour Organization (2001). Retrieved February 3, 2011.</ref> [[Guild]] unions operate locally in most areas, but are limited largely to issuing credentials and licenses. The right to strike is generally not respected by the state. Since 1979 strikes have often been met by police action.<ref>[https://www.pbs.org/wgbh/pages/frontline/tehranbureau/2010/01/irans-new-labor.html Iran's New Labor?] ''Frontline'' (PBS), January 28, 2010. Retrieved February 3, 2011.</ref>

A comprehensive law covers labor relations, including hiring of foreign workers. This provides a broad and inclusive definition of the individuals it covers, recognizing written, oral, temporary and indefinite employment contracts. Considered employee-friendly, the labor law makes it difficult to lay off staff. Employing personnel on consecutive six-month contracts (to avoid paying benefits) is illegal, as is dismissing staff without proof of a serious offense. Labor disputes are settled by a special labor council, which usually rules in favor of the employee.<ref name="Labor"/>