Four-minute read
According to a report published by the state-run daily Shargh on September 13, 2025, the financial collapse of Iran’s middle class is accelerating. Educated young people, many with multiple jobs, say they are slipping into poverty despite working harder than ever. Once able to enjoy modest prosperity—including travel, leisure, and small savings—they now describe themselves as “poor middle class,” trapped in a cycle of shrinking opportunities and mounting anxiety.
The Vanishing Middle Class
The testimonies collected by Shargh paint a stark picture of decline. A young woman working at a private company reflected on how her life has changed in only a few years: “When I compare myself to four years ago, everything is different. I used to go to restaurants several times a week, but now maybe once a month—and even then, it feels too expensive. I always bought good skincare products, but today I can’t even afford lower-quality ones. My salary has risen from five to thirty million tomans, but my pocket is emptier than ever.”
Her story reflects a broader trend. A young bookseller in Tehran, who recently married, described how even the most basic joys have become out of reach: “We thought we could at least afford a honeymoon trip. We saved gifts from our wedding, but the costs kept rising. Now, even a short trip to Turkey is impossible. Both of us work two jobs, but every day is just about survival. We are stuck in the same place.”
A newlywed couple expressed the same frustrations. Despite both working full-time, they admitted: “We don’t understand how our salaries disappear so fast. We used to enjoy eating out, but that’s gone. Even a short trip to Kish Island left us broke for the rest of the month. Now our shopping basket has shrunk to only necessities—snacks, coffee, and anything imported are gone. The simplest needs of daily life have become worries.”
#Iran's Perfect Storm: Regime Corruption Dries Up Dams, Shuts Down Power, and Empties Dinner Tableshttps://t.co/aBtECx8pjV
— NCRI-FAC (@iran_policy) September 11, 2025
Fear, Anxiety, and the Cost of Survival
Beyond the economic decline, the mental toll is profound. Many described living with constant fear of poverty. One young employee in a well-known dairy company explained: “I earn more than before, but I feel poorer. I used to attend language classes, go to the gym, and meet friends in cafés. Now I’ve cut all of that, but life is harder. My greatest fear is reaching the end of the month with no money. Even if my laptop breaks, it would ruin me because I have nothing left to save.”
Psychologists confirm this widespread anxiety. Nasser Ghasemzadeh, a mental health expert interviewed by Shargh, warned: “This chronic anxiety does not just affect individuals, it threatens the future of society. Young people are postponing marriage and abandoning plans for children because of financial despair. When people cannot meet their most basic needs, hope disappears.”
Structural Inequality and Regime Neglect
The regime-affiliated economist Hossein Raghfar told Shargh that the crisis reflects systemic failure: “What young people face today is not simply low income but a form of structured inequality and systemic neglect of citizens’ basic rights.” He noted that inflation has spiraled out of control, citing a 60–70 percent increase in car prices within just one month.
August 13—Tehran, Iran
Investors rally in front of the Ministry of Economy, protesting the constant downfall of the stock market, caused by government policies.#IranProtests pic.twitter.com/JHDs5M4u5X— People's Mojahedin Organization of Iran (PMOI/MEK) (@Mojahedineng) August 13, 2025
Raghfar emphasized that unlike business owners who can adjust prices, middle-class wage earners cannot keep up with inflation. As a result, “they are under constant economic pressure, while the poorest suffer even more.” He also warned that nearly 26% of youth between 15 and 25 are neither studying, working, nor in training. “This reality is producing a generation vulnerable to frustration, violence, and crime. The anger of young people is directed at decision-makers, and they are right to see them as responsible for their misery.”
A Generation Without a Future
The collapse of housing affordability is the clearest symbol of despair. As Raghfar explained: “Young people today not only cannot buy homes, they cannot even dream of owning one. With unstable jobs, inflation, and no economic security, they see no future ahead.”
Even leisure activities, once central to middle-class life, have disappeared. A young teacher who had previously traveled abroad regularly said: “Until last year, I traveled to Turkey more than seven times. Now, even the cheapest trip is impossible. Our salaries are higher, but the quality of our lives is worse. We had to give up even our shared apartment because rent has become unaffordable.”
Récompense pour démanteler le réseau iranien de contournement des sanctions pétrolières https://t.co/xmPg9awEyD pic.twitter.com/EBqGLfgU6F
— Iran Focus (@Iran_Focus) September 13, 2025
Collapse of Trust and Social Hope
The testimonies show more than individual struggles—they expose a generational collapse. As Raghfar warned, “The middle class once played an active role in public life. Today, crushed by economic pressures and convinced they have no influence, they are depoliticized. They see no sign that the authorities care about their fate.”
This abandonment has far-reaching consequences: young Iranians are losing faith not only in their personal future but in the future of their society. As Ghasemzadeh stressed, “A young person who lives in constant fear of poverty cannot plan for tomorrow. This chronic anxiety is not just an individual problem—it is a threat to the future of the entire nation.”
Shargh’s report only focuses on the middle class. The lower deciles of society are even worse off, failing to meet their most basic needs. This continued decline of the economy and spread of poverty has the hallmark of regime corruption all over it, something that the Iranian people fully understand, reflected in their daily protests across the country. And it is only a matter of time before the situation boils into another nationwide uprising against the regime in its entirety.