Tehran, Iran, Oct.23
Trend:
The sanctions undoubtedly affect economic variables such as inflation, a Faculty Member of Allame Tabatabaee University, Abdullah Taheri told Trend.
“One of the problems in Iran is unemployment and lack of job creation, but employment requires investment and is correlated with production rates. There so if we have booming rates in production, we would also see an increase in demand for jobs,” said the economist.
The US plans to impose new sanctions on Iran's oil sector from November 4 in a bid to curb Iranian involvement in conflicts in Syria and Iraq and bring Tehran to the negotiating table over its ballistic missile program.
"Production boom would only happen in a sanctions–free market where the security for investments is provided. If these factors are not provided in a market, we can’t expect to see high rates of employments" said Taheri.
Taheri, criticizing the public sphere, suggested that unfortunately, in these conditions, there is no possibility of attracting investors, and not only domestic and foreign investment are not absorbed, but the domestic capital also goes out of the country, which is a threat to employment.
"The sanctions are affecting Iran's job creating process," he said. "Naturally, sanctions will affect all economic variables, and employment is not an exception. Employment rates may be initially increased with a drop in imports to boost domestic production, but eventually sanctions would have an impact on the economy.”
Taheri believes the employment is directly affected by politics.
"Unfortunately, in Iran in order to explain economic phenomena we need to deal with political issues, while in all other countries the role of the economy is more intense and economic phenomena are explained only by economics," said the economist.