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Due to the 1973 spike in oil prices, the economy of Iran was flooded with foreign currency, which caused inflation. By 1974, the economy of Iran was experiencing double digit inflation, and despite many large projects to modernize the country, corruption was rampant and caused large amounts of waste. By 1975 and 1976, an economic recession led to increased unemployment, especially among millions of youth who had migrated to the cities of Iran looking for construction jobs during the boom years of the early 1970s. By the late 1970s, many of these people opposed the Shah's regime and began to organize and join the protests against it.

Why did millions of youth migrate to the urban areas of Iran in the mid 1970s?
construction jobs