Title: Wage Disparity in Construction: Iranian vs. Afghan Workers and Its Impact on Housing Projects
Construction Sector Faces Economic Challenges
The wage gap between Iranian and Afghan workers in the construction industry has become a pressing issue, particularly amid the ongoing housing market slowdown. Economic and social factors have significantly influenced project costs and timelines, with recent policy shifts further complicating the situation.
Housing Market Slowdown and Labor Shifts
Hasan Mohtasham, a board member of Tehran’s Mass Builders Association, attributes the construction sector’s stagnation to multiple factors, including the departure of foreign labor and broader economic pressures. He notes that recent geopolitical tensions and capital outflows have exacerbated these challenges.
The removal of foreign workers from construction projects has led to increased costs and delays, disrupting progress in an already strained industry.
Rising Costs Due to Labor Replacement
Labor expenses account for roughly 30% of total construction costs, with foreign workers previously making up 25% of the workforce. Replacing them with Iranian laborers—who command higher wages and mandatory insurance benefits—has driven costs upward, forcing some housing projects to stall.
A comparison of daily wages highlights the disparity:
| Worker Type | Daily Wage (Tomans) | Insurance Coverage |
|---|---|---|
| Afghan Laborer (Unskilled) | 800,000 | None |
| Iranian Laborer (Unskilled) | 2,000,000 | Mandatory |
Decline in Housing Supply and Distribution Issues
Housing production has fallen short of targets in recent years, with Mohtasham citing war-related disruptions, bureaucratic delays in permits, and investment hurdles as key obstacles. Additionally, uneven housing distribution—with excess supply in affluent urban areas and shortages in middle-income zones—has limited access to affordable homes for lower-income groups.
Reevaluating Housing Policies
Government initiatives like the National Housing Movement, which aimed to build one million homes annually, have struggled with implementation gaps, including incomplete registrations and misaligned beneficiary targeting. Experts argue that more precise planning—particularly for low-income areas—and better resource allocation oversight are needed to address housing shortages effectively.
As policymakers reassess strategies, balancing labor costs with sustainable development remains critical to reviving Iran’s construction sector.
