Social sector in Azerbaijan (January-February 2014)

Azerbaijani President Ilham Aliyev signed a decree on indexation of insurance part of labor pensions in February 2014. The State Social Protection Fund was instructed to ensure the indexation of all types of labor pensions for Jan.1 2014 in accordance with the consumer prices index in 2013, in order to strengthen the social protection of pensioners; to carry out the indexation of the amount of pension capital accumulated in the insurance part of individual accounts in the individual account system.

The State Labour Inspection Service under Azerbaijani Ministry of Labour and Social Protection revealed around 2,060 facts of violation of the labor legislation in Jan.-Feb. These facts are mainly revealed in order to increase the responsibility of employers to protect the rights and labor safety of workers. As a result of the revealed violations, employers were fined 770,850 manat and around 232,281 manat of this amount has already been paid. This figure exceeds the fines imposed on employers during the same period of 2013 by 11.5 times and 17 times respectively.

Electronic registration of labor relations has been introduced in Azerbaijan: an employment contract is invalid unless registered in the system. All the employment contracts signed with employees should be included in the single information system till July 1, 2014. The new rules entered into force after the president's approval of the amendments to the Labor Code according to which the registration of an employment contract in the information system is carried out within one working day.

Population's income

The nominal income of Azerbaijani population totaled 5.636 billion manat in Jan.-Feb. 2014, which is 4.1 percent more than in Jan.-Feb. 2013, according to the Azerbaijani State Statistics Committee.

Thus, during this period, the nominal income of the population per capita increased by 2.8 percent and hit 601.8 manat.

Major indices, characterizing income of the population

Source: State Statistics Committee

Salary

The salary is one of the key social and economic indicators, which sufficiently enough characterizes the level of the prosperity of the working part of the population. The average monthly salary in Azerbaijan amounted to 426.3 manat as of January 2014 compared to 423 manat as of 2013 and 396 manat as of early 2013. The annualized nominal salary increased by 6.4 percent in January; its nominal growth amounted to 0.8 percent in January compared to December 2013.

The remuneration in the oil sector reached 1695.3 manat, the non-oil sector - 397.3 manat, the public sector -344.2 manat, the private sector -550.2 manat.

The highest salary was observed in the mining industry, financial, information and communication, scientific and technical activity, as well as the construction sectors.

Labor market

The economically active population totaled 4.764.7 million people and some 4.528.7 million of them were involved in labor activity as of early March 2014. The number of hired employees amounted to 1.492.3 million people. The public sector provides some 896,800 people with jobs, while the private sector - 595,500 people.

The number of people working in the oil sector amounted to 33,000 people, in the non-oil sector - 1.459.3 million people. Around 1.449.9 million people among hired employees work in non-agricultural sphere.

Around 21.7 percent fall to the hired employees involved in the production spheres: 6.5 percent in construction, 6.3 percent in manufacturing industry, 2.8 percent in agriculture, forestry and fishing, 2.2 percent - in the mining industry, 2.1 percent - in the production and distribution of electricity, gas and steam, 1.8 percent - in water supply, waste recycling, 22.7 percent in education, 18.8 percent - trade, repair of vehicles, 8.7 percent - medical and social services, 6.7 percent in state governance and defense, social maintenance, 5.1 percent - transportation and warehousing, 3.8 percent - recreation, entertainment and arts, 3.8 percent - professional, scientific and technical activities, 1.8 percent - communication and information, 1.9 percent - financial and insurance activities, 1.9 percent - financial and insurance activity, 1.6 percent - administrative and additional services, 1.5 percent - tourist accommodation and public catering, 1.1 percent - other areas, as well as 0.8 percent - real estate transactions.

As of March 1, 2014, around 36,619 citizens were officially registered as unemployed in Azerbaijan compared to 36,488 people as of Feb.1 and 36,209 people as of early 2014.

Thus, the number of unemployed increased by 131 people in February and by 410 people - in 2014.

The amount of an unemployment benefit in Azerbaijan is 244.3 manat as of March 1 2014 and some 1,480 people received it.

As of March 1, 2014, the largest number of unemployed (13,555 people, of whom only 513 people received benefits) was registered in Baku's 12 administrative districts and 18 regions of the Aran economic area (10,108 and 283 respectively).

Distribution of unemployed individuals and those who receive unemployment benefit in towns and regions as of March 1, 2014 (people):

The Azerbaijani government continues taking measures to increase the employment level. The State Employment Service under the Ministry of Labour and Social Welfare provided 1,019 people with jobs in accordance with the quotas. Some 207 of the people provided with jobs are disabled people, 228 people are parents of one or more minor children, 216 people are under the age of 20, 215 people are refugees and IDPs, 38 - war veterans, 32 - members of the families of martyrs, 21 - released from prison and so on.

Some 1,363 vacancies at around 77 enterprises were offered unemployed persons and the citizens looking for a job at mini-job fairs in the districts of Baku city in Jan.-Feb. 2014. Around 270 people were assigned to a job, 49 people took professional training courses in relevant areas.

The labour exchanges of State Employment Service under the Ministry of Labour and Social Protection provided over 620 people with temporary jobs in Baku, Sumgait, Nakhchivan, Ganja and Mingachevir in Jan.-Feb. 2014. Some 373 of them are women and 245 are young people. The labour exchanges provide the unemployed people with a temporary part-time job which provides earnings.

The State Labour Inspection Service under the Ministry of Labour and Social Protection of Azerbaijan ensured signing of employment contracts with around 1,330 employees from various enterprises of the country in Jan.-Feb. 2014. Some 55 collective contracts were signed between employers and labor collectives. These collective contracts determine the additional terms of labor relations. There was ensured the payment of previously detained social payments in the amount of 137,070 manat, including salary - 129,144 manat, for harmful working conditions - 6,929 manat, as well as social benefits and compensation - in the amount of 997 manat.

The State Labour Inspection Service under the Ministry of Labour and Social Protection of Azerbaijan organized preparatory courses on 15 specialties (hairdresser, welder, seamstress, programmer, programmer and designer, confectioner, etc.) to provide opportunities for the unemployed and the citizens looking for a job. Some 258 unemployed and job-seekers were involved in the courses. After the completion of the courses, the employment services will provide the course attendants with an appropriate job.