Poverty in the Middle Class

Poverty hits the middle class

According to Iran Gate’s report, the danger of poverty reaching the middle class is equivalent to the middle class falling into the poverty trap. The index of destitution has reached a historical record in the provinces of Hormozgan, Kermanshah, Khuzestan, Lorestan, and Chaharmahal and Bakhtiari.

An official report by the Statistical Center of Iran in Khordad shows that the average unemployment rate was 9% in 1401 and the inflation rate was 485% in Khordad 1402. The index of destitution stands at over 60% in eight provinces of Iran, and over 55% in the rest of the provinces. The destitution index is an economic indicator derived annually by adding the unemployment rate to the inflation rate, and its increase exacerbates the risk of social harm.

Among the provinces of Iran, Hormozgan has the highest destitution rate with 643%, followed by Kermanshah with 634%, Khuzestan with 611%, Lorestan with 61%, West Azerbaijan with 609%, Chaharmahal and Bakhtiari with 608%, and Yazd with 603%, ranking second to eighth in terms of the highest destitution rates. The increase in the unemployment rate in Hormozgan province occurs under conditions where the province benefits from its proximity to the sea and its maritime and oil industries.

Official reports from the Statistical Center indicate that Hormozgan has the highest unemployment rate among all provinces in the country in the year 1401, with a rate 158% higher than the national average. Authorities in this province claim that one of the reasons for the increase in unemployment rate is the entry of women into the labor market. According to these officials, women in this province have not been job seekers before due to cultural and social reasons.

However, the increase in inflation rate and economic pressures have motivated women to enter the labor market in this province. All of this is happening while the people of this province say that finding a job for men is difficult. Traditionally, the occupation of the people in Hormozgan province is fishing due to its proximity to the sea. In recent years, there have been numerous protests by fishermen in this province against the government’s policies regarding leasing the sea to Chinese companies.

According to the fishermen of Hormozgan, dozens of Chinese ships daily catch trawl fish from the sea, which not only damages the fishery resources of this province but also leads to unemployment of hundreds of small fishing boats.

Poverty is a factor in crime and delinquency.

With the increase in inflation rate and the rise in poverty line in Iran, the shadow of adversity has spread and intensified over many provinces of Iran. Provinces where important industries of Iran are located and unemployment rates have been low in previous years, are now experiencing a higher adversity index compared to the national average. Yazd, Kerman, Isfahan, and Ardabil are among the provinces with high adversity index.

Among the provinces with the highest adversity index, the border provinces are at the forefront. These provinces witnessed the highest level of suppression by the government during the protests following the increase in gasoline prices in November 2019 and also in September 2022.

The high unemployment rate has led people in border provinces to engage in smuggling. In the western provinces, ‘Kolbari’ is recognized as a profession, a profession that causes some citizens to lose their lives every year. Kolbars are either targeted by border forces or they face accidents or freezing in difficult crossing routes and lose their lives.

The situation in the eastern border provinces is progressively worsening, with fuel smuggling being a phenomenon that has turned into the primary occupation of the people in these areas over the past four decades due to the government’s negligence towards the eastern provinces. Those engaged in this occupation constantly risk their lives by encountering border military forces, and this cycle continues.

Simultaneously with the increase in the inflation rate, the social welfare situation in Iran has deteriorated in the past five years. Examination of official government statistics shows that the misery index has increased from 193 in 1395 to 577 percent. The highest level of the misery index in Iran was previously recorded in 1374, with a figure of 584 percent.

According to economists, the increase in the misery index can pose risks such as social damages, including crime, poverty, suicide, population growth reduction, and divorce. This danger, which has cast a larger and heavier shadow over Iranian society over the past decade, continues to expand.

The temporary agreement is a remedy for Iran’s economy.