On December 29, 2024, mass protests and strikes erupted across Iran, fueled by public frustration over soaring inflation and deteriorating living conditions. In Ahvaz, retirees joined nationwide demonstrations demanding higher pensions, reflecting a broader sentiment of discontent among various social groups. Merchants in Tehran's Grand Bazaar participated by closing their shops and chanting slogans like "Don’t be afraid, close your shops!" as a form of protest against the economic situation. Strikes extended to key markets due to skyrocketing raw material costs, with the U.S. dollar surpassing 81,000 tomans, further exacerbating economic pressures on the populace. Protests were reported in cities including Shush, Isfahan, and Qaemshahr, where workers demanded unpaid wages. Economic experts have warned of potential hyperinflation, which could worsen the already dire economic conditions. The unrest reflects growing dissatisfaction with the regime's economic mismanagement, as over 11,500 healthcare workers have left Iran in the past two years, indicating a significant brain drain from the country. This wave of protests follows earlier demonstrations by oil workers in Ahvaz on October 22, 2024, who demanded higher wages and better working conditions. The Iranian regime's attempts to rally support for its confrontational stance against Israel have been overshadowed by the escalating domestic unrest.
In addition to the protests, a recent report highlights that housing constitutes over 70% of workers' expenses in Iran. Labor and employer groups are seeking government collaboration to address the housing crisis, although skepticism remains among labor activists regarding the government's intentions. Mohammad Reza Tajik discussed potential solutions such as low-interest loans and land rezoning for housing, but critics argue that these discussions serve as a diversion from pressing wage issues. The maximum income for a married worker is reported to be less than 150 million rials (approximately $178), while the minimum cost of living in metropolitan areas was estimated at 320 million rials (around $380) in September 2024. The cost of living basket for a typical family of 3.3 members is around 400 million rials (approximately $475), yet the average worker's wage only covers about 30% of their expenses. Alarmingly, 9% of workers earn below the legal wage, and Ahmad Meidari has stated that the minimum wage should not be based solely on living costs. In October 2024, the household livelihood basket cost was reported at 367.8 million rials (approximately $437).
As of January 2025, Iran's economic situation has further deteriorated, with inflation remaining above 30% since 2018. The nominal GDP per capita has decreased from $4,741 in 2022 to $4,501 in 2023, and the Iranian Rial has depreciated by 62%, from IRR 520,000 on January 1, 2024, to IRR 845,000 on January 27, 2025. President Pezeshkian is advocating for diplomatic engagement with the West to lift sanctions, emphasizing the need for reforms in subsidies and a shift towards a digital economy. However, high inflation and budget deficits continue to pose significant challenges, with electricity shortages causing daily losses of $224 million. Youth unemployment exceeds 20%, raising concerns about potential social unrest if necessary reforms fail. [b44b446b][48dadeb0][423466c1][923d0cc6]