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Private Sector Creates More Jobs than the Public Sector in Iran

Private Sector and Public Sector in Iran

The Iranian government under Mahmoud Ahmadinejad has been heavily criticized by local economists for unemployment of youths and educated students.

Over the past few years, Iran’s private sector has made more jobs than the public sector, which is mainly administrated by governmental organizations. Some 50% of Iran’s economy is reportedly centrally planned, but private sector plays an important role in the nation’s economy.

According to the statistics released by the government, more than 3 million jobs have been created by the Iranian government under Ahmadinejad in recent four years. However, economists raise questions about the economic performance of the government in these years.

Basically Iran was suffering from international embargoes due to its blatant nuclear case, and many factories were forced to close down over the past four years. Economists say only 300,000 new jobs have been created by public and private sector in combined.

Mohammad Hossein Oshaghi, an Iranian scholar, believes that private sector had performed better than public sector, and it should be rewarded by Iran’s new president, Hassan Rouhani.

“Recently, students of Tehran University conducted a research about the contributions of private sector to Iran’s economy. Accordingly the private sector in Iran has managed to create more jobs than the Iranian government in recent years. Almost 80% of new jobs have been created by privately-held companies and financial institutions. This is a remarkable success for country’s economy.” Mohammad Hossein Oshaghi told the Herald Boy on Thursday.

The Iranian economist called on the government to ease the process of recruiting human resources in public sector. “Currently, there are a large number of unemployed but skilled and educated people in Iran. I strongly believe that the Iranian government can change this condition by undertaking easy policies with regard to hiring educated and experienced forces.”

The economy of Iran is a mixed and transition economy with a large public sector.  It is dominated by oil and gas production.

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