The Iranian labor market underwent significant and multifaceted disruptions in the aftermath of the Iran-Israel war. Official and media reports indicate that various sectors of the economy – including tourism, technology, aviation, auto parts manufacturing, and media – experienced waves of layoffs, suspensions of activities, and a reduction in job opportunities in the months following the war’s conclusion. These developments not only resulted in a notable decline in available positions and hiring demand but also transformed job insecurity and livelihood concerns into primary issues for both job seekers and employees. Statistical analyses reveal a 24% decrease in job opportunities, a 62% drop in submitted applications, and severe stagnation in industries such as tourism and technology – sectors that previously served as key drivers of the digital economy and youth employment. This scenario, combined with the lack of effective support packages, contract suspensions, and non-payment of wages, has had profound social and psychological repercussions on the lives of workers and their families.

Key Indicators of the Labor Market Post-War

“Job Vision” Report on the Post-War Labor Market

A 24% reduction in job opportunities compared to the pre-war period has been documented, with reports indicating a periodic collapse of up to 81% in job postings during the conflict. Additionally, the number of applications submitted for job positions decreased by 62%. The sectors most severely affected included “Tourism,” “Marketing and Advertising,” and “Service Companies.” Among job categories, “Baristas and Coffee Specialists,” “Civil Engineering,” and “Digital Marketing & SEO” experienced the sharpest declines. Likewise, “Chemical and Petroleum Engineering,” “Drivers and Distribution Managers,” and “Health, Safety, and Environment (HSE) Experts” showed the greatest reductions in submitted job applications. “Job Vision” also conducted a survey assessing the war’s impact on employment among its users. The survey revealed that lack of job security, limited growth opportunities, and uncertainty regarding the labor market’s future were identified as the most pressing mental health concerns. Furthermore, inadequate income relative to living costs, financial stress, and lack of savings emerged as significant livelihood-related worries for both job seekers and employees. Notably, approximately 40% of respondents reported becoming unemployed following the war (Zoomit, 2025, https://www.zoomit.ir/tech-iran/444589-jobvision-statics-after-war).

Media analyses have also documented waves of layoffs and contract suspensions within certain technology companies during the early days of the war, with reductions ranging from 20% to 30%. These reports indicate that startups associated with tourism and digital advertising were particularly vulnerable (Asriran, 2025, https://www.asriran.com/fa/news/1081194/%D8%B3%D8%A7%DB%8C%D9%87-%D8%AC%D9%86%DA%AF-%D8%A8%D8%B1-%D8%A8%D8%A7%D8%B2%D8%A7%D8%B1-%DA%A9%D8%A7%D8%B1).

Potential Decline in the Second Layer of the Digital Economy

The Deputy Minister of Policy at the Ministry of Communications has indicated that, if current conditions persist, “there is a possibility of up to a 30% reduction in the workforce in the second layer of the digital economy” (this is a policy warning, not a realized statistic) (Asriran, 2025, https://www.asriran.com/fa/news/1081194/%D8%B3%D8%A7%DB%8C%D9%87-%D8%AC%D9%86%DA%AF-%D8%A8%D8%B1-%D8%A8%D8%A7%D8%B2%D8%A7%D8%B1-%DA%A9%D8%A7%D8%B1).

Auto Parts Manufacturing Industry

A survey conducted within the auto parts manufacturing sector, involving 60 units, revealed that 80% have either already laid off employees or are on the brink of doing so, according to the Head of the Association of Homogeneous Industries of Auto Parts Manufacturing (Asriran, 2025, https://www.asriran.com/fa/news/1081194/%D8%B3%D8%A7%DB%8C%D9%87-%D8%AC%D9%86%DA%AF-%D8%A8%D8%B1-%D8%A8%D8%A7%D8%B2%D8%A7%D8%B1-%DA%A9%D8%A7%D8%B1). Additionally, there is a warning regarding the potential unemployment of several hundred thousand workers (Tasnim News, 2025, https://www.tasnimnews.com/fa/news/1404/04/24/3355066/%D9%87%D8%B4%D8%AF%D8%A7%D8%B1-%D8%AC%D8%AF%DB%8C-%D9%82%D8%B7%D8%B9%D9%87-%D8%B3%D8%A7%D8%B2%D8%A7%D9%86-80-%D8%AF%D8%B1%D8%B5%D8%AF-%D9%88%D8%A7%D8%AD%D8%AF%D9%87%D8%A7-%D8%AF%D8%B1-%D8%A2%D8%B3%D8%AA%D8%A7%D9%86%D9%87-%D8%AA%D8%B9%D8%AF%DB%8C%D9%84-%D9%86%DB%8C%D8%B1%D9%88-%D9%87%D8%B3%D8%AA%D9%86%D8%AF).

Flight suspensions and travel advisories have placed significant strain on the tourism industry (ISNA, 2025, https://www.isna.ir/news/1404042817209/%D9%87%D8%B4%D8%AF%D8%A7%D8%B1-%D9%BE%D8%B1%D9%87%DB%8C%D8%B2-%D8%A7%D8%B2-%D8%B3%D9%81%D8%B1-%D8%A8%D9%87-%D8%A7%DB%8C%D8%B1%D8%A7%D9%86-%DA%A9%D8%A7%D8%B1-%D8%B1%D8%A7-%D8%B3%D8%AE%D8%AA-%D9%85%DB%8C-%DA%A9%D9%86%D8%AF-%D9%82%D8%B4%D8%B1-%D9%85%D8%AA%D9%88%D8%B3%D8%B7-%D8%AA%D9%88%D8%A7%D9%86). Multiple media reports have indicated a high likelihood of layoffs within travel companies, including Alibaba. The 20-day closure of Iranian airspace has resulted in financial damages estimated at 9.6 trillion tomans (Booking, 2025, https://www.booking.ir/articles/irans-20-day-sky-closure-has-brought-96-trillion-tomans).

Negotiations by Professional and Support Associations

Members of the Journalists’ Association have been actively negotiating with media managers to delay or prevent layoffs (Asriran, 2025, https://www.asriran.com/fa/news/1075586/%D8%AA%D8%B9%D8%AF%DB%8C%D9%84-%D9%86%DB%8C%D8%B1%D9%88%DB%8C-%DA%A9%D8%A7%D8%B1-%D8%AF%D8%B1-%D8%B1%D8%B3%D8%A7%D9%86%D9%87%E2%80%8F%E2%80%8C%D9%87%D8%A7-%D9%BE%D8%B3-%D8%A7%D8%B2-%D8%A2%D8%AA%D8%B4%E2%80%8C%D8%A8%D8%B3-%D8%A7%D8%AE%D8%B1%D8%A7%D8%AC-%D8%AD%D8%AF%D9%88%D8%AF-%DB%B1%DB%B5%DB%B0-%D8%AE%D8%A8%D8%B1%D9%86%DA%AF%D8%A7%D8%B1).

Reliability of “Company-by-Company” Announcements

Many companies have not disclosed official figures, opting instead to report only a “reduction in cooperation/project-based work.” Some layoffs have been temporary, project-based, or the result of non-renewed contracts, which are not reflected in official statistics. Moreover, there is no unified statistical body to consolidate this data in real-time. These limitations have been explicitly addressed in analytical and professional reports (Khabaronline, 2025, https://www.khabaronline.ir/news/2089355/%DA%A9%D8%A7%D8%B1%DA%AF%D8%B1%D8%A7%D9%86-%D9%82%D8%B1%D8%A8%D8%A7%D9%86%DB%8C%D8%A7%D9%86-%D8%A7%D8%B5%D9%84%DB%8C-%D8%AC%D9%86%DA%AF-%DB%B1%DB%B2-%D8%B1%D9%88%D8%B2%D9%87-%D8%AE%D8%AF%D8%A7%DB%8C%DB%8C-%D8%B4%D9%88%D8%B1%D8%A7%DB%8C-%D8%B9%D8%A7%D9%84%DB%8C-%DA%A9%D8%A7%D8%B1-%D9%86%D8%A8%D8%A7%DB%8C%D8%AF).

To date, no public or official list of employees laid off from Iranian companies following the Iran–Israel conflict has been published. This is attributed to privacy and data protection laws that prohibit the disclosure of names of dismissed or laid-off employees without their consent. Even in media reports and company statements, only the number or percentage of layoffs has been mentioned, without identifying individuals. Disclosing such names could result in legal and social consequences for both companies and individuals, including reputational damage or potential lawsuits.

Workforce Downsizing in Companies

Media (Press and News Agencies)

Reports indicate that, following the conflict, several media outlets laid off up to two-thirds of their workforce. Organizations such as Rah-e Pardakht, Khabar Online, Eghtesad Online, Donya-ye-Eqtesad, Tejarat News, Eco Iran, and others were significantly impacted by this trend. For instance, one newsroom dismissed 10 out of 38 staff members, while another forced 8 out of 10 employees to leave their positions due to the ongoing repercussions of the war (Persian Epoch Times, 2025, https://persianepochtimes.com/a-wave-of-mass-layoffs-in-media-institutions-in-iran-after-the-12-day-war/).

Technology Companies and Startups

The digital economy has been one of the most severely affected sectors, with platform workers and technology firms in Iran appearing to be the initial victims of this drastic wave of downsizing. In the aftermath of the Israeli aggression, companies such as Alibaba and Karnameh were compelled to reduce their workforce (Davtalab, 2025, https://davtalab.org/2025/3903/).

A report published in Startup360, titled “Human Dominoes: Are Layoffs the Only Remedy for Our Crisis-Stricken Digital Economy?”, highlighted the extensive layoffs throughout Iran’s technology and startup ecosystem following the 12-day conflict. This trend was attributed to the economic crisis, internet disruptions, and a significant decline in revenues. Although precise statistics were not provided, the report referenced substantial layoffs in “the largest tourism startup in the country” (Startup360, 2025, https://startup360.ir/massive-layoffs-due-to-the-economic-crisis-of-war-in-iran-tech-companies).

The automobile startup Karnameh reduced its workforce by 16%, a figure confirmed by the company’s CEO in statements to Digiato (Digiato, 2025, https://digiato.com/iran-technology-news/karnameh-company-employees-were-laid-off).

The digital advertising firm Donse also downsized “several employees,” although the exact figure was not disclosed. This information was reported by the company’s former Public Relations Manager (Shargh Daily, 2025, https://www.sharghdaily.com/%D8%A8%D8%AE%D8%B4-%D8%B1%D9%88%D8%B2%D9%86%D8%A7%D9%85%D9%87-100/1028371-%D8%A8%DB%8C%DA%A9%D8%A7%D8%B1%DB%8C-%DA%AF%D8%B3%D8%AA%D8%B1%D8%AF%D9%87)

Online Tourism

Companies such as Alibaba, which specializes in online travel booking, have reportedly laid off up to 45% of their workforce (iTDAY, 2025, https://itday.tech/alibaba-layoffs-iran-war-tourism). These figures are derived from multiple media reports and LinkedIn statements, with no official press release confirming an exact number (Iranianstartup, 2025, https://iranianstartup.com/%D9%BE%D8%B3%D9%84%D8%B1%D8%B2%D9%87%D9%87%D8%A7%DB%8C-%D8%AC%D9%86%DA%AF%D8%8C-%D8%B9%D9%84%DB%8C%D8%A8%D8%A7%D8%A8%D8%A7-%D8%B1%D8%A7-%D9%86%D8%A7%DA%AF%D8%B2%DB%8C%D8%B1). The company’s Public Relations office has not denied the layoffs and has promised to provide further clarification (Digiato, 2025, https://digiato.com/iran-technology-news/modification-force-alibaba).

The outbreak of war has resulted in flight cancellations and significantly impacted demand for online travel services, such as Snapp. Industry insiders have reported the possibility of workforce reductions or downsizing of operations. Furthermore, disruptions in geolocation services have posed significant challenges for online platforms (Jahannews, 2025, https://www.jahannews.com/news/940280/%DA%AF%D8%B2%D8%A7%D8%B1%D8%B4-%D8%B9%D9%85%D9%84%DA%A9%D8%B1%D8%AF-%DA%AF%D8%B1%D9%88%D9%87-%D8%A7%D8%B3%D9%86%D9%BE-%D8%AC%D9%86%DA%AF-%DB%B1%DB%B2-%D8%B1%D9%88%D8%B2%D9%87-%D9%85%D9%86%D8%AA%D8%B4%D8%B1).

Another report indicated widespread closures of travel agencies, with over one thousand agencies across the country ceasing operations. Many of these offices shut down without issuing formal announcements (Tourismonline, 2025, https://www.tourismonline.co/news/143571/%D8%AA%D9%88%D8%B1%D9%84%DB%8C%D8%AF%D8%B1%D9%87%D8%A7).

The hospitality sector has also faced pressure, as hotels have experienced declining revenues. However, some hotels have adapted by repurposing their facilities to serve as shelters for individuals affected by the war (Beytoote, 2025, https://www.beytoote.com/news/social/mbnews212668.html).

Conclusion

The developments in the post-war labor market illustrate that the adverse effects of this crisis extend beyond declining employment figures, evolving into a widespread social and economic crisis. The lack of job security, financial strain, absence of savings, and inadequate support mechanisms have rendered many families vulnerable to daily expenses. Coupled with this economic pressure is a growing sense of helplessness and distrust toward support institutions, further exacerbating social discontent. While certain industries have managed to retain some operational capacity, the potential for a deepening employment crisis and rising unemployment in the upcoming months remains significant.

The Israeli attack on Iran has had profound repercussions on the country’s economic and social framework, particularly impacting the labor market. In the short term, the shock of insecurity, reduced investment, and a steep decline in consumer demand compelled numerous businesses to downscale or suspend operations. This trend is especially pronounced in sectors such as services, tourism, transportation, and industries reliant on imports and exports.

On the other hand, many companies, in efforts to manage costs, have been compelled to downsize or halt new hiring. Economic insecurity and market instability have undermined employers’ confidence in the future, leading to a noticeable contraction in job opportunities. Preliminary statistics indicate that the availability of job opportunities in certain sectors has decreased by over 20 to 30 percent. However, the repercussions have not been uniform across all sectors. Industries related to military, security, energy, and certain technology fields associated with defense and cybersecurity not only avoided declines in employment but, in some cases, experienced an uptick in labor demand. This suggests that conflict and war tend to redirect labor demand toward strategic and essential sectors.

In the long term, the persistence of this situation may exacerbate unemployment, precipitate the migration of skilled labor, and diminish productivity, as an unstable economic environment deters both domestic and foreign investors from active participation in the labor market. The reports reviewed indicate that the Israeli attack on Iran served as the direct and primary catalyst for this crisis within Iran’s labor market. However, it is important to recognize that the effects of this factor manifest at multiple levels:

Direct Factors (the immediate shock of war):

• Suspension of flights, cancellation of tours, and collapse of tourism: Israeli attacks prompted numerous countries to issue travel advisories against Iran and suspend flights, delivering an immediate blow to the hospitality industry, tourism, and travel-related startups.
• Disruption of internet and communication infrastructure: The war and accompanying cyberattacks diminished trust in the online environment and caused temporary shutdowns of certain internet services. For startups and the digital economy—heavily reliant on online platforms—this resulted in direct financial losses.
• Damage to supply chains and production: Missile attacks and the state of emergency disrupted the automotive and parts manufacturing industry, leaving production units grappling with order cancellations and liquidity shortages.

Indirect Factors (secondary consequences):

• Increased uncertainty and investment risk: The insecure environment created by the war led both domestic and foreign investors to withdraw. Additionally, companies resorted to downsizing to mitigate risks.
• Psychological and social shock: The war not only impacted economic indicators but also engendered uncertainty in public perception of the future, leading many job seekers to lose motivation in pursuing employment opportunities.

From an analytical perspective, it can be asserted that Israel’s conflict with Iran served as the primary catalyst for the labor market crisis. Consequently, Israel should be viewed as the initial external factor. The instability generated by this conflict has adversely affected the livelihoods of Iranians.

Resources

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