Mismatch Between Specialized Skills and Labor Market Needs a Major Cause of Unemployment

TEHRAN (Iran News) According to a report quoting the Ministry of Cooperatives, Labour and Social Welfare, Gholamhossein Mohammadi made the remarks during a joint meeting with the Majles (Iranian Parliament) Social Affairs Commission, held as part of planning efforts for Khuzestan Province and the city of Shadegan.

Mohammadi noted that while part of the challenges facing the labor market is related to wage and income issues, the most fundamental and sustainable solution lies in developing targeted, demand-driven skills training. “Without equipping the workforce with practical and relevant skills, employment challenges will persist, regardless of other policy measures,” he said.

Emphasizing the need to restore balance within the national education system, Mohammadi explained that current policymaking efforts are focused on increasing the share of vocational and skills-based training alongside academic education, while also strengthening coherence within the country’s skills development ecosystem. In this context, he announced the formation of a “skills consortium” in Khuzestan Province, aimed at coordinating public and private stakeholders involved in training and employment.

He added that under current plans, approximately 60,000 people are expected to receive targeted vocational training in Khuzestan over the next five years. “In addition, a dedicated and tailored program has been designed specifically for Shadegan County, taking into account its local capacities and labor market requirements,” Mohammadi said.

The head of the Technical and Vocational Training Organization identified the shortage of qualified instructors as one of the most serious challenges facing the sector. According to him, Iran is currently facing a shortfall of around 1,500 technical and vocational training instructors nationwide. He noted that although financial resources have been allocated for the ranking and professional classification of instructors, cooperation from the Administrative and Recruitment Affairs Organization has not been forthcoming, hindering progress in this area.

During a visit to the Dasht-e Azadegan Technical and Vocational Training Center, Mohammadi also announced the allocation of 3 billion tomans in funding for the counties of Dasht-e Azadegan and Hoveyzeh. He said that around 1 billion tomans of this amount has been earmarked for the purchase of training equipment, which is scheduled for delivery next week. The remaining 2 billion tomans will be provided through national social responsibility funds of the Ministry of Cooperatives, Labour and Social Welfare to support infrastructure development.

He further noted that additional funding from provincial capital asset resources will be allocated by the end of the year, helping to strengthen training facilities and expand access to skills education.

Mohammadi concluded by highlighting Khuzestan’s significant human and industrial capacities, describing the province as well positioned for the expansion of skills training initiatives. “Targeted investment in vocational education can act as a driving force for employment transformation and a meaningful reduction in unemployment across the province,” he said.