SOAS Research Online

Abstract

Despite a high level of investment and rapid rate of growth in the urban economy of Iran during the decade 1956-1966, the amount of net new employment generated was relatively modest. Since the supply of labour in the urban areas grew at a faster pace than did new work opportunities, the incidence of open unemployment increased over the period. Furthermore, most of the new employment created was either in self-employment of a marginal nature or in wage employment of very low productivity and earnings in tiny production units or outside any establishment, mainly the consequence of the inability of the modem sector to absorb the great numbers of workers seeking employment at its gates. Other persons recorded by surveys as economically-inactive were in reality unemployed and (although not actively) were searching for work. When these "passive" job-seekers, the "disguised unemployed" in forced self-employment, and the openly unemployed actively seeking work are all recognized as components of unemployment, then the real extent of urban worklessness in Iran reaches great dimensions. However, the Iranian Government appears oblivious of the gravity of the problem and continues to treat employment generation only as a residual of the country's growth and development.