Title: Iran Explores Strategic Formalization of Foreign Labor to Boost Economic Resilience
In a significant address at the Twentieth Human Resources Development Conference, hosted by the Industrial Management Organization, Iranian labor law and social security expert Armin Khoshvaghti outlined a comprehensive vision for the strategic management of foreign nationals in Iran’s labor market. The conference, attended by senior officials including Ali Bagheri, Director General of Foreign Nationals’ Employment Affairs at the Ministry of Labor, and Fatemeh Ashrafi, head of the Association for Refugee Women and Children, focused on turning current challenges into opportunities for national economic growth.
Foreign Labor: A Pillar for Production Cost Reduction
Mr. Khoshvagti emphasized the indispensable role foreign workers play in key sectors such as construction, municipal services, and agriculture. He noted their high flexibility and willingness to accept lower wages as a critical factor in reducing overall production costs for Iranian enterprises, thereby enhancing the competitiveness of domestic goods.
Bolstering Social Security Through Formalization
A central theme of the address was the need to formalize the status of foreign workers. Khoshvaghti pointed out that many employers currently avoid paying insurance premiums for their foreign employees, which in turn reduces the revenue of the Social Security Organization. He argued that bringing these workers into the formal economy through official contracts and mandated insurance payments would create a more sustainable revenue stream for social security funds and increase the number of formal employment agreements overall.
Addressing Urban Concentration and Promoting Regional Development
The expert highlighted the risks associated with the high concentration of foreign labor in major metropolitan areas, which places immense strain on urban infrastructure and fuels the growth of an informal labor market. As a solution, he proposed the strategic redistribution of this workforce through territorial planning policies. This approach would not only alleviate pressure on major cities but also stimulate economic growth in less developed regions of the country.
The Economic Perils of Mass Deportation
Criticizing policies of mass deportation, Khoshvaghti warned that abruptly removing foreign workers could create significant economic challenges for small and medium-sized enterprises. He explained that replacing them with domestic labor is often difficult due to higher expected wages and a frequent lack of similar skills. Such policies, he cautioned, could inadvertently push foreign labor further into informal activities, thereby threatening overall economic security.
Formalization as a Path to National Security and Stability
Khoshvaghti firmly stated that formalizing the foreign workforce is a key to alleviating social and security concerns. This policy, he elaborated, would encourage more precise territorial planning and improved socio-economic strategies, ultimately leading to greater stability across all regions of Iran.
Enhancing Global Competitiveness Amidst Challenges
In a global context where production costs are a critical factor, Khoshvaghti outlined how a formalized foreign labor force can be a strategic asset. He suggested that their contribution to lowering production costs could significantly enhance the global competitiveness of Iranian products, providing a vital boost to the country’s export capabilities.
Creating Opportunities for the Iranian Workforce
Crucially, the expert framed formalization as a benefit to Iranian workers. By officially recognizing foreign nationals in simpler, more labor-intensive jobs, Iranian workers can be upskilled and trained to take on more advanced, professional roles that offer higher wages. This, he said, would enhance the competitiveness and bargaining power of the entire national labor force.
A New Generation of Foreign Nationals
Khoshvaghti also noted a shift in the perspective of a new generation of foreign nationals, particularly those from Afghanistan. He explained that many now view Iran not as a final destination, but as a platform for personal and professional development. This generation shows less interest in simple labor jobs, with many already engaged informally in advanced fields like programming and specialized trades.
Strategic Organization for a Stable Economic Future
In conclusion, Armin Khoshvaghti underscored the urgent need for a principled and organized approach to foreign labor management. This includes issuing official work permits and implementing effective territorial policies. He warned that a failure to adopt such strategies could damage the Social Security Fund and destabilize the labor market. Ultimately, he positioned these measures as essential for increasing Iran’s market productivity and guiding the nation through its current economic challenges.