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Why Is Women’s Share of Iran’s Economy Smaller Than Their Potential? – WANA

WANA (May 30) – According to World Bank data, the economic participation rate of women in Iran has reached 14 percent. While this represents an improvement compared to three decades ago, it still remains significantly below the true potential of Iranian women. When discussing women’s economic participation, the conversation extends beyond formal employment. It is […]

WANA (May 30) – According to World Bank data, the economic participation rate of women in Iran has reached 14 percent. While this represents an improvement compared to three decades ago, it still remains significantly below the true potential of Iranian women.

When discussing women’s economic participation, the conversation extends beyond formal employment. It is fundamentally about the contribution of half of the country’s population to the national economy.

The latest World Bank figures indicate that women’s labor force participation in Iran now stands at approximately 14 percent. At first glance, this number may appear modest, but it reflects an important story of social, educational, and economic transformation taking place in the country.

A review of the past 35 years shows that women’s economic participation in Iran increased from around 10 percent in 1990 to 14 percent in 2025, reaching nearly 18 percent during the late 2000s. This upward trend suggests that Iranian women have been steadily, albeit gradually, securing a more prominent place in the nation’s economy.

According to the World Bank, the labor force participation rate refers to the percentage of working-age women who are either employed or actively seeking employment. As such, the indicator measures women’s active presence in the labor market—a presence that has clearly expanded in Iran over recent decades.

One of the most important drivers behind this change has been the rise in women’s educational attainment. Today, Iranian women account for a substantial share of university students and have expanded their presence across sectors such as education, healthcare, technology, media, startups, creative industries, and digital businesses.

In recent years, the expansion of internet access and the growth of online employment have also created new opportunities. Many Iranian women now generate income through e-commerce, content creation, online education, professional services, and home-based businesses. Notably, a significant portion of these activities is still not fully reflected in official labor market statistics.

This is one of the main reasons why some experts argue that the 14 percent figure does not fully capture the actual economic contribution of Iranian women. A large share of women’s work—including household labor, childcare, elder care, and parts of the informal economy—remains excluded from conventional economic calculations, despite playing a crucial role in sustaining families and communities.

Globally, the average female labor force participation rate stands at approximately 48.9 percent. Countries such as Madagascar, at 82.9 percent, and Nigeria, at 80.7 percent, rank among the highest. However, their economic structures differ considerably from Iran’s, as a substantial portion of women’s work in those countries is concentrated in subsistence agriculture and informal economic activities.

By contrast, Iran’s economy has increasingly shifted toward service-based, specialized, and knowledge-driven sectors. This transition could create greater opportunities for women’s participation in the years ahead. Many analysts believe that with stronger support mechanisms, more equal employment opportunities, and policies that facilitate workforce entry, women’s economic contribution could expand far beyond current levels.

The reality is that Iranian women today are more educated, skilled, and prepared to enter economic life than at any previous point in the country’s history. The gradual rise in women’s labor force participation over the past three decades is a clear indication of changing social attitudes and the growing role of women in the national economy.

While a participation rate of 14 percent may still fall short of an ideal benchmark, the more important story lies in the direction of change. The trend points toward a different future—one in which Iranian women can play a much larger role in production, innovation, entrepreneurship, and the country’s overall development.…Read more by hejazi

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