42% of Iran’s Unemployed Are University Graduates; Why This Figure Is a Disaster

A concerning issue in Iran is the unemployment of university graduates. The difference between the unemployment of these individuals and those without university education lies in the amount of expense and time that a country, individuals, families, and the educational system invest in preparing them, with the expectation that they will be absorbed into the job market after graduation. However, in Iran, this process is not functioning properly.

Approximately one month ago, the Deputy for Development of Social and Public Affairs of Iran’s Management Organization announced that 42% of the country’s unemployed are university graduates. Just two days ago, the Educational Deputy of the Minister of Science reported that 17% of university graduates are unemployed.

Reducing the unemployment rate was one of Hassan Rouhani’s main slogans during the two most recent presidential election campaigns, but not only has this rate failed to decrease, it has actually increased.

Statistics related to graduate unemployment are varied and sometimes contradictory. Meanwhile, the unemployment situation of graduates also shows clear differences depending on the gender of individuals.

Massoumeh Ebtekar, Hassan Rouhani’s Deputy for Women and Family Affairs, stated last year that the unemployment rate of educated women was three times that of men. One of the issues that experts acknowledge is that in Iran, there is virtually no connection between universities and economic institutions, and there is no mechanism for professionally absorbing a university graduate.

Siamak Sheibani, an economic analyst with Voice of America, says that in the world, it is the job market that tells academic circles what fields and qualifications are needed, not what we saw happen, for example, at Free University, where they launch whatever field they want wherever they want.

Meanwhile, the unemployment crisis is not limited to the educated class.

Hassan Rouhani’s government has achieved nothing in reducing the overall unemployment rate, and many experts even consider the announced rates to be lower than the actual reality.

Nevertheless, the annual population growth and the large number of new graduates seeking work have made it difficult for the twelfth government in Iran to control the situation.

Siamak Sheibani attributes the failure of Rouhani’s government to poor planning and the government’s inability, saying that the workforce is growing at a rate of 2.5% annually. This figure suggests that if the Islamic Republic creates three million jobs annually, it can maintain unemployment at this level; however, we know it cannot.

This economist added that in a healthy economy, five basic needs must first be met before jobs are created. That is, the government must provide food, clothing, health, education, and medical services, and then move toward job creation; something the Iranian government has not done.

Economic crises, including the increase in currency exchange rates and new international sanctions, do not provide job seekers with a clear and transparent outlook for improvements in employment and a reduction in unemployment rates.

Source: Voice of America