The overall Producer Price Index for the services sector (using the year ending March 2017 as a base year) stood at 322.8 in the first quarter of the current fiscal year (March 21-June 21), indicating an 11.2% increase compared with the preceding quarter, the Statistical Center of Iran reported.
The index measured for Q1 producer inflation in the services sector indicates a 48.7% increase compared with the same quarter of the year before, which is the highest year-on-year inflation since spring 2012 (the earliest available data on services producers' inflation on SCI’s website).
The average PPI for the services sector in the four-quarter period ending June 21 increased by 42% compared with the same period of the year before, which is the highest annual inflation since the winter of 2013.
Services PPI is calculated based on the indexes of 13 subsectors, namely “water networks, wastewater management, and wastewater treatment” with a coefficient of 1.2%, “repairing motor vehicles and motorcycles” with 2.8%, “transportation and warehouse services” with 23.2%, “services regarding accommodation and food” with 4.8%, “information and communications” with 8.5%, “insurance services” with 1.7%, “real-estate services” with 26.8%, “professional, scientific and technical activities” with 3%, “administrative and support services” with 1.7%, “education” with 9.3%, “social work services” with 14.2%, “art, entertainment and leisure” with 1.1% and “services categorized as others” with 1.8%.
For “water networks, wastewater management and wastewater treatment”, PPI stood at 199 in Q1, indicating an increase of 20% and 22% compared with the previous quarter and the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period ending June 21 increased by 6.3%.
PPI for “repairing motor vehicles and motorcycles” stood at 507.1, indicating a 14% rise compared with the previous quarter and a 70.3% growth compared with the same quarter of the year before. The average PPI for the subsector in the four-quarter period ending June 21 grew by 61.6%.
The index for “transportation and warehouse services” stood at 380.6, posting a 14.2% rise quarter-on-quarter and a 60.5% rise year-on-year. The average annual PPI for the subsector in the four-quarter period increased by 54.5%.
For “services regarding accommodation and food”, PPI stood at 622.3, registering a 17.2% increase QOQ and an 84.5% increase YOY. The average annual PPI for the subsector in the four-quarter period increased by 65.9%.
For “information and communications”, the index stood at 232.3, indicating a 6.4% rise compared with the previous quarter and a 25.6% increase compared with the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 22%.
“Insurance services” saw the PPI stand at 209.5, registering a 25.8% rise QOQ and a 31.6% increase YOY. The average annual PPI for the subsector in the four-quarter period increased by 21.9%.
For “real-estate services”, the index was at 201.7, posting a 3.8% rise compared with the previous quarter and a 25.7% increase compared with the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 24.3%.
“Professional, scientific and technical activities” had a PPI of 276, indicating a 10.3% rise over the preceding quarter and a 45.2% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 41.5%.
The PPI measured for the subsector of “administrative and support services” stood at 558.6, showing an 11.6% growth compared with the previous quarter and a 77.1% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 62.9%.
“Education” recorded a PPI of 265.2, indicating a 1.9% rise over the preceding quarter and a 30.1% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 30%.
For “social work services”, PPI stood at 402.5, indicating a 15.4% rise compared with the previous quarter and a 55.7% increase compared with the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 46.2%.
“Art, entertainment and leisure” had a PPI of 331.4, indicating a 10.5% rise over the preceding quarter and a 42.8% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 39.2%.
“Services categorized as others” registered a PPI of 424.9, indicating a 13% rise over the preceding quarter and a 54.8% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 48.3%.
48% Share of Total Employed Population
The services sector employed 48.8% of the Iranian employed population (11.55 million) in the first quarter of the current Iranian year (March 21-June 21), 0.9% less than the corresponding period of last year, according to latest data released by the Statistical Center of Iran.
The industrial and agricultural sectors provided 33.2% and 17.9% of jobs respectively.
Over 7.87 million were employed in the industrial sector, indicating an increase of 1.4% compared with the same period of the year before and 4.24 million worked in the agriculture sector, posting a 0.7% decrease YOY.
The services sector consists of wholesale and retail trade; restaurants and hotels; transport, storage and communications; financing, insurance, real-estate and business services; as well as community, social, education, health and personal services.
The services sector employed 9.55 million men and 2 million women in the three-month period.
Over 6.99 million men and 875,573 women were employed in the industrial sector and 3.5 million men and 746,601 women worked in the agriculture sector in Q1.
Services sector accounted for 57.8% or 10.18 million of all jobs in urban areas and 22.6% or 1.36 million of jobs in rural areas.
The industrial sector made up 35% or 6.16 million of the jobs in urban areas and comprised 28.1% or 1.7 million of employment in rural areas.
This is while 7.1% or 1.25 million of the total jobs in urban areas and 49.4% or 2.99 million of the jobs in rural areas were in the agriculture sector.
The total Q1 employment rate was 37.7% (23.67 million), up 0.8% compared with the same quarter of the last Iranian year. Employment rates for men and women were 63.9% and 11.5%, respectively, which constituted 20.05 million men and 3.62 million women in Q1.
Employment rate was 36.5% (17.6 million people) in urban areas and 41.6% (6.06 million) in rural areas.
The share of employment of university graduates stood at 25.3% of the total employed population, wherein male and female graduate employment rate was 21.7% and 45.3%, respectively. Graduate employment rates in urban and rural areas stood at 31.2% and 8.2% of the total population of job-holders respectively.
Employment is defined as persons of working age engaged in any activity to produce goods or provide services for pay or profit, whether at work during the reference period or not at work due to a temporary absence from a job, or to working-time arrangement.
Iran’s unemployment rate, the proportion of jobless population of ages 15 and above, stood at 8.8% in Q1, indicating a 1% decline compared with the same period of last year.
According to the latest report by the Statistical Center of Iran, a total of 2,291,604 Iranians were unemployed in Q1. Men’s unemployment stood at 7.5% while the rate for women hovered around 15.6%. Over 1.62 million men and 669,346 women of ages 15 and above were jobless in Q1.
The unemployment rate was 9.6% for urban areas (1.87 million people) and 6.4% for rural areas (416,220 people).
SCI put Q1 labor force participation rate — the proportion of the population of ages 15 and above that is economically active either employed or looking for a job — at 41.4% or 25.96 million people, registering a 0.4% increase year-on-year.
Men’s and women’s economic participation rates were 69.1% and 13.7% respectively in the same period.
A total of 21.67 million men and 4.29 million women of ages 15 and above were economically active in Q1, i.e., they were either employed or looking for a job.
