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Internet Restrictions in Iran Result in Millions of Job Losses: Who Is Responsible?

April 25, Kathmandu – Amid ongoing tensions with the United States and Israel, internet restrictions in Iran have severely impacted millions of people. Approximately 10 million Iranians depend on uninterrupted internet access for their work. Initial estimates indicate that over one million jobs have been lost due to these internet limitations. Independent assessments suggest the actual impact may be even more significant, with substantial losses projected in the digital economy. Furthermore, widespread damage has been reported across infrastructure and various industries.

Within Iran, the internet restrictions have sparked internal disagreements within the government. Senior Iranian officials have warned that the internet blackout is causing job losses and will have considerable social and economic repercussions. There have been serious objections raised regarding unequal internet access, but some high-ranking government officials assert that given the extraordinary circumstances, restoring internet service is not feasible at this time. Consequently, citizens have been urged to remain patient.

According to Iranian authorities and media reports, the economic fallout from the conflict with the US and Israel is intensifying. This continuing pressure is adversely affecting employment, the digital economy, and key industries. A significant concern surrounds the complete nationwide internet blockade, which has now entered its 54th day. Senior officials emphasize the importance of equitable and fair access. Iran’s official government information portal shared that First Vice President Mohammad Reza Aref, on April 22, recognized internet access as a global right.

Deputy Labor Minister Gholam Hossein Mohammadi stated that preliminary estimates show over one million jobs have been lost due to the conflict, with an additional 2 million people facing direct or indirect unemployment. Some Iranian media outlets estimate that up to 4 million jobs have been lost or affected, suggesting the economic damage might be even higher. The digital economy alone is estimated to have incurred losses amounting to 2,150 trillion rials (approximately 1.69 billion USD). Daily losses in the digital sector are valued at 5 trillion rials (3.9 million USD), while the overall economy suffers losses estimated at 50 trillion rials (39.2 million USD) daily.

Officials have justified the internet restrictions as wartime necessities. Elias Hazrati, head of the government’s public relations council, stated that full internet restoration will only occur after the conflict ends. Highlighting the ‘special circumstances,’ he appealed to the public for patience. On April 21, Communications Minister Sattar Hashemi called stable, high-quality internet access a ‘public right.’ He warned that these disruptions stem not just from technical issues but also multifaceted and systemic problems.

Hashemi emphasized that nearly 10 million people, predominantly from middle and lower-income groups, rely directly on dependable digital connectivity for their livelihoods. He cautioned that ongoing instability poses a direct threat to their employment and could lead to widespread social and economic consequences. Highlighting financial pressures in the telecommunications sector, he noted that some service providers are experiencing reduced revenues and struggle to pay their employees’ salaries.