In recent years, there has been a significant increase in business recession and inter-occupational migration in Iran. What is the reason behind this trend?

Undoubtedly, without economic prosperity and support for production, businesses will stagnate. Individuals in society, particularly those actively participating in the workforce and concerned about their livelihoods, inevitably find themselves compelled to seek employment in the service sector.

Furthermore, some resort to engaging in informal or counterfeit employment opportunities to support their families and make ends meet. However, the consequence of this is the loss of valuable human talent and productive capital within the country.

It is evident that this problem and crisis stem from the incompetence and mismanagement of the ruling system. As time progresses, economic deterioration and business stagnation worsen, ultimately leading to the creation of economically precarious jobs.

Activists and experts cite various reasons for this crisis. High inflation is certainly one of the primary and most glaring factors. The decline in people’s purchasing power due to decreased income and high inflation directly impacts businesses, affecting both the production and sale of goods and services. Despite the allocation of capital, producers and sellers fail to generate sufficient profit and income from their endeavors. This persistent situation, observable in recent years, inevitably prompts shifts in job dynamics within society.

Approaching the final days of the Persian year, various guilds report a decline in purchases on the eve of Nowruz and the first days of Ramadan. People restrict their purchases to only necessary and essential goods and services. Traditionally, luxury items purchased during Nowruz are being increasingly avoided.

Recently, Mohammad Reza Ramezan, the head of the Union of Sellers of Audio and Video Devices and Mobile Phones, announced a 70% decrease in sales compared to the previous year. He notes that sellers lack the resources to offer installment plans, leading to layoffs or downsizing among employees in this sector. Ramezan also mentions a 10% shift of workers from this industry to the food market.

This transition inevitably impacts emerging guilds, intensifying competition and diminishing profits for both new and established sellers across various sectors.

Similarly, owners in the laundry industry confirm a recession exceeding 50%, with 20% of businesses shutting down. High inflation is cited as the primary reason for closures in this sector.

These economic activists note a stark contrast in business activity during Nowruz, traditionally a period of high demand. However, the current economic climate has led to a decline in demand, with individuals opting to perform many services at home due to financial constraints, further exacerbating the stagnation in this industry.

This economic downturn not only yields unfortunate consequences as previously mentioned but also contributes to a rise in unemployment. The resulting decrease in purchasing power perpetuates a cycle of economic decline.