Iran’s three sectors carve workforce unevenly
Agricultural sector boasts strong employment rate
An analysis of labor market statistical data from the closing months of the last Iranian year (ended on March 19, 2023) reveals that the agricultural sector’s contribution in 21 provinces exceeded the national average of 12.9 percent. Attention to rural employment, the growth of ancillary and transformational industries in the agricultural sector over the past three years, has been one of the key factors contributing to the rise in the agricultural sector’s share in the provinces, despite the persistent drought.
Upon reviewing the report from the Statistical Centre of Iran, it is clear that the unemployment, employment, and economic participation rates in the provinces have shown improvement, resulting in favorable conditions across different economic sectors.
Comparing the final quarter of the last Iranian year to the same period two years ago, the participation rate was 40.8%, with an employment rate of 37.3%. This shows a decrease in unemployment and growth in both participation and employment rates. Studies indicate that the unemployment rate saw a balanced 8.6% decrease at the end of the last Iranian year compared to the same period two years ago. The unemployment rate decreased in 20 provinces, with 16 provinces witnessing a more significant drop than the national average. Moreover, the increase in participation rates across 19 provinces indicates that the labor market was dynamic, spurred by the growth in the active population over the past year.
Employment figures across three sectors
According to data from the Statistical Centre, the country’s economy is classified into three sectors: Services, industry, and agriculture. Each sector’s growth has the potential to drive the overall economy and contribute to the country’s Gross Domestic Product (GDP). In the previous year’s winter, the services sector maintained its position as the highest employment generator in the country, accounting for 53.6% of total employment.
The industry sector ranked second, with 33.5% of the workforce employed in this sector last winter. Interestingly, this sector’s share saw a 0.3% increase compared to March 19, 2022 (two years ago), while the services sector saw a slight 0.1% decrease.
During the last winter, more than 311,000 job seekers found employment in the industrial sector, and an additional 390,000 individuals secured jobs within the services sector. In contrast, the agriculture sector’s share of overall employment reached 12.9% during this period, representing a 0.1% decline when compared to the winter of 2022. Despite this marginal decrease, the agricultural sector still saw an increase in workers, with approximately 52,000 individuals joining its ranks.
Out of the total 24,193,000 workers in the winter of last year, 3,110,000 workers were engaged in the agriculture sector. This highlights the significance of all three sectors in contributing to the country’s workforce and overall economic growth.
Some provinces pick up the slack
During the winter of 2023, the majority of the country’s provinces saw a higher concentration of employment within the agricultural sector than the national average. An analysis of labor market data from the Statistical Center’s report reveals that 21 provinces boasted an employment share in agriculture surpassing the 12.9% national average.
With the exception of five provinces, the remaining 26 provinces exhibited an agricultural sector employment share of over 10%. Notably, Yazd had a 7.6% share, Isfahan 6.9%, Qom 2.8%, Alborz 1.9%, and Tehran 1.5%, representing the lowest agricultural sector employment shares among all provinces.
Kerman leads in employment
Provinces with the highest job creation within the agricultural sector include Kerman, North Khorasan, Ardebil, Lorestan, and West Azarbaijan.
In these five provinces, the agricultural sector’s employment share exceeded 22%. Notably, Kerman Province boasted the highest share at 40.4%, significantly outperforming the other economic sectors in job creation. Furthermore, Kerman’s agricultural sector average employment was 27.5% higher than the national average.
North Khorasan secured the second spot with a 29.1% share, followed by Ardebil at 26.4%, Lorestan at 23.2%, and West Azarbaijan at 22.8%. Provinces such as Kermanshah and Kurdestan also saw notable shares, reaching 19%.
In Hamedan, Zanjan, Hormuzgan, and Golestan, the agricultural sector’s average employment reached 18%, marking a 6% higher contribution than the national average.
Next in line were Ilam, South Khorasan, and Gilan, boasting a 16% share and 4% increase above the national average. East Azarbaijan, Khuzestan, and Mazandaran provinces fell within the 14% range, while Fars and Qazvin provinces reached the 13% mark. South Khorasan and Sistan and Baluchestan provinces held steady at 12%.
The current administration’s proactive labor market policies have fostered an environment conducive to labor market equilibrium. This strategic approach, encompassing mechanisms such as job search platforms, vocational training, and direct or self-employment opportunities, has effectively influenced labor supply and demand.