Iran has been hit by a massive wave of redundancies as a direct and indirect consequence of its conflict with the United States and Israel, with two million people losing their jobs, according to the country’s Deputy Work and Social Security Minister.

Gholamhossein Mohammadi disclosed the figure in comments cited by the BBC, in what the broadcaster described as one of the biggest topics of conversation on Iranian social media. Employers and government officials have euphemistically referred to the layoffs as “balancing the workforce”.

The impact extends well beyond factories destroyed by airstrikes. The BBC reported that manufacturers, retailers, import and export businesses and the digital sector have all shed workers as the economy contracts. One user on X described the visible toll: “You can see it from the emptiness of the metro.”

Iran’s economy has been squeezed simultaneously by the war damage, soaring inflation and a continuing US naval blockade of its ports. Washington has maintained the maritime blockade despite extending a ceasefire with Tehran, with President Donald Trump saying the blockade will remain until Iran submits a unified negotiating proposal.

The economic crisis threatens further instability if hostilities resume. State media reports have placed the war’s direct damage at over 270 billion dollars, with Tehran demanding reparations as a precondition for substantive talks.

The jobs number is the latest indicator that Iran’s domestic economy is deteriorating faster than the official narrative of resilience suggests, adding pressure on leaders as they weigh whether to send a delegation to the stalled Islamabad talks.