Iran has been hit by a massive wave of redundancies, both directly and indirectly as a result of the conflict with the US and Israel. Its Deputy Work and Social Security Minister, Gholamhossein Mohammadi, said two days ago that two million people had lost their jobs because of the war. The widespread lay-offs are one of the biggest topics of conversation among ordinary Iranians on social media. Employers and government officials euphemistically refer to it as 'balancing the workforce'. The impact goes far beyond factories closed down after being hit by air strikes. It also includes other manufacturers, retailers, import and export businesses, and the digital sector. 'You can see it from the emptiness of the metro,' posted one user on X. 'You can see it from the abundance of parking spaces near the office,' said another. 'You can get it from the emptiness of the Hemmat [highway in Tehran]. My one-and-a-half hour journey took only half an hour,' came another comment. The war has also had a negative impact on consumer spending, with many people cutting back to essentials, which has reduced demand in sectors such as tourism, restaurants, and retailers other than groceries. The Iranian authorities' decision to impose an internet blackout since the war broke out has also hit Iran's relatively thriving tech and digital sectors. Officials say the decision to shut down the internet was taken for security reasons, suggesting that it is to prevent surveillance, espionage, and cyber-attacks. It took the same step during the brutal clampdown on protests earlier this year, which was mainly aimed at restricting protesters' ability to organize and access information. Back in January, Iran's Information and Communication Technology Minister, Sattar Hashemi, mentioned that each day of the internet blackout costs the economy at least 50 trillion rials ($35m). By that count, the 52 days of internet shutdown since the start of the war have cost the Iranian economy more than $1.8 billion. The blackout has particularly affected female earners. Official data shows that only one in nine working-age women in Iran had jobs before the war, and hundreds of thousands relied on platforms such as Instagram to connect with customers and sell products. Moreover, even at a time of increased demand for news due to the conflict, many media outlets have shed workers. For instance, the Iran Labour News Agency (Ilna) laid off all its journalists last week, asking them to work as freelancers. In late March and early April, the US and Israel targeted two of Iran's largest petrochemical plants, in Asaluyeh and Mahshahr, as well as two major steel manufacturers, Mobarakeh Steel and Khuzestan Steel. While tens of thousands directly lost their jobs, hundreds of thousands more work in firms that either supply these key industries or rely on them for raw materials. One example is Iran's significant car manufacturing sector, which is estimated to directly or indirectly employ one million people, with multiple reports of layoffs across its supply chain. Disruptions in the Strait of Hormuz have also forced some factories to shut down and dismiss workers. An executive in a manufacturing firm in the central province of Qom noted that they had to halt production due to a lack of materials, worried that foreign suppliers would not permit shipments to reach Iranian waters. Reports have emerged of companies laying off employees with promises to rehire them once conditions improve, while others are compelling workers to take unpaid leave. The government has introduced a loan scheme for small businesses, offering 440 million rials (less than $300) per worker, to be repaid in six months at interest rates between 18% and 35%, depending on redundancies made. This wave of unemployment coincides with an official inflation rate surpassing 50% as of March 2026, and many experts predict it may rise further. If the war resumes or if Iran remains under stringent international sanctions, conditions could worsen significantly for tens of millions of Iranians. Air strikes have devastating consequences, but the economic downturn, escalating unemployment, and surging prices could deepen the crisis considerably.