Job Market Unaffected by Growth Rates
Economy, Domestic Economy

Job Market Unaffected by Growth Rates

Minister of Cooperatives, Labor and Social Welfare, Ali Rabiei says the positive economic growth experienced over the past one year has failed to lead to job creation.
Addressing an administrative meeting in Ardabil Province on Thursday, the minister noted that the job market is still suffering from harmful effects of the negative economic growth experienced in the previous years, Mehr News Agency reported.
The governor of Central Bank of Iran, Valiollah Seif said on Thursday that economic growth during the past Iranian year (ended March 20) stood at 3%, following two consecutive years of negative growth.
Rabiei believes the government has a long way to go before achieving the 8% economic growth envisioned in the sixth five-year economic development plan (2016-2021).
“To achieve this objective and create enough jobs, considerable investments are required which the government alone cannot afford without public participation,” he said.
According to Rabiei, as many as 4.5 million university graduates in the country are currently unemployed.
A recent report published by the Parliament Research Center indicates that there has been a negative correlation between economic growth and employment status over the past decade.
Unemployment was at its highest in the Iranian year 2010-11 when 13.5% or 3.22 million of the labor force were unemployed. This is while the economy had experienced 6.5% positive growth during the period – the highest since 2008.
The unemployment rate stood at 12.1% and 10.4% during the years 2012-13 and 2013-14 respectively, when economic growth of -6.8% and -1.9% was recorded.
The Parliament’s report predicts that 5.6 million new college graduates will enter the job market by 2021, doubling the current rate of unemployment.
Overreliance on oil revenues and imports as well as technological advances which have led to higher workforce productivity are seen as some of the main reasons behind the job market’s failure to improve in line with economic growth.
Assuming 37.3% participation rate and 5% average annual economic growth from 2015 to 2021, the report forecasts that unemployment rate will reach 15.9% in 2021, leaving 4.17 million jobless.

Short URL : https://goo.gl/d502qS
  1. https://goo.gl/z1gdJ3
  • https://goo.gl/BysXL9
  • https://goo.gl/Ja9OXW
  • https://goo.gl/Gx80N5
  • https://goo.gl/VCcuj5

You can also read ...

US Sanctions on Iran Affect Trade With UAE
The latest US sanctions against Iran are forcing many Iranian...
Failure to Safeguard Iran Deal Will Show EU Still a Paper Tiger
Just a few weeks ago, it seemed that the Iran nuclear deal...
Iraq to Respect Dollar Ban But Not All US Sanctions on Iran
Iraqi Prime Minister Haider al-Abadi stepped back from his...
Indian Tea Exporters Seeking Special Exchange Rate From Iran
The Indian tea industry has sought a special exchange rate...
Gold Coin Gains
The benchmark Bahar Azadi gold coin gained on Tuesday, as both...
New Government Policies Reduce Forex Demand
The implementation of new foreign exchange policies by the...
Nvidia Rolls Out New Chip Technology for Filmmakers
Nvidia Corp on Monday released a new generation of chips aimed...
Google Tracks Your Movements, Like It or Not
Google wants to know where you go so badly that it records...