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Social sector in Azerbaijan (january-june 2014)

Analysis Materials 12 August 2014 17:17 (UTC +04:00)

An increase in real income of the population, a decrease in poverty level, an increase in employment, the efficient use of human resources, improvement of the living conditions of disabled veterans and families of martyrs, creating of a medical and social rehabilitation system in accordance with modern requirements, an increase in payments to the population testify to the perfection of Azerbaijan's social policy for the last six months of this year.

Population's income

According to the Azerbaijani State Statistics Committee, the nominal income of the population totaled 17.780.6 billion manat in January-June 2014, which is 4.7 percent more compared to January-June 2013.

Thus, during this period, the nominal income of the population per capita increased by 3.3 percent and hit 1.895 manat.

Major indices, characterizing income of the population

Indices

Jan.-June 2014

Compared to Jan.-June 2013, %

nominal income of population, in mln manat

17780,6

104,7

Per capita, manat

1895,0

103,3

Income of population, in mln manat

16141,5

105,0

Per capita, manat

1720,3

103,7

Source: State Statistics Committee

The population's income after paying all required fees and membership fees made up 16,141,5 billion manat, which is 5 percent more than in January-June 2013. Real income per capita increased by 3.7 percent to 1720,3 manat.

Azerbaijani citizens spent 70.2 percent to purchase goods and services, 9.2 percent - to pay for taxes, duties, social and insurance fees, 2.6 percent - to pay for loans, 18 percent - to accumulate the capital during this period.

The population's expenditure amounted to 14,579,9 billion manat in January-June 2014 or 3,200,7 billion manat less than the income of the population.

The gap in the amount of the population's income and expenditure in favor of income testifies to the growth of material well-being of Azerbaijani citizens. The differentiation of the population's income and the Gini coefficient in the country should be taken into account

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. According to the Azerbaijani State Statistics Committee, the average monthly salary in Azerbaijan in January-May 2014 comprised 438.1 manat compared to 408.8 manat as of the same period of 2013.

As of June 1, 2014, the average salary of temporary staff was 268.2 manat, while employees involved upon civil contracts - 299.2 manat.

Remuneration in the oil sector reached 1.803.6 manat per month, the non-oil sector - 403.8 manat, the public sector - 352.6 manat, the private sector - 566.0 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

As of July 1, 2014, some 36,900 people were officially registered as unemployed in Azerbaijan, including 40.8 percent women.

Thus, the number of unemployed has slightly increased since early 2014. As of January 1, 2014, some 36,206 people were registered as unemployed.

According to the State Statistics Committee, as of early July 2014, the economically active population is 4,793,8 million people, of which 4,556,5 people were engaged in labor activity. In this case, as of June 1, 2014, the number of hired persons is 1,510,8 million people, including 905,200 people worked in the public sector, and 605,600 people - in private sector.

The number of people working in the oil sector amounted to 36,200 people, in the non-oil sector - 1.474.6 million people. Around 1.467.5 million people among hired employees work in non-agricultural sphere.

Around 21.9 percent fall to the hired employees involved in the production spheres: 6.6 percent in construction, 6.2 percent in manufacturing industry, 2.9 percent in agriculture, forestry and fishing, 2.4 percent - in the mining industry, 2.1 percent - in the production and distribution of electricity, gas and steam, 1.7 percent - in water supply, waste recycling, 22.6 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 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, 2 percent - financial and insurance activities, 0.8 percent - real estate transactions, 1.6 percent - administrative and additional services, 1.4 percent - tourist accommodation and food and 1.1 percent - other areas

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

Region:

Individuals with unemployed status:

Individuals receiving unemployment benefits:

Baku

13 829

837

Absheron region

1 750

381

Ganja-Gazakh

2 298

226

Sheki-Zaqatala

1 067

115

Lankaran

1 023

84

Guba-Khachmaz

1 178

108

Aran

10 274

473

Upper-Karabakh

3 292

116

Kalbajar-Lachin

1 415

68

Mountain Shirvan

953

51

Nakhchivan

-

-

As of July 1, 2014, the largest number of unemployed (13,829 people, of which only 837 people received benefits) was registered in Baku and Aran economic region (10,274 and 473 people respectively).

The average unemployment benefit in Azerbaijan is 246.2 manat. The allowance has decreased by 8.3 percent since the beginning of the year.

The Azerbaijani government continues taking measures to increase the employment level. Thus, the State Employment Service under the Azerbaijani Ministry of Labor and Social Protection conducted the job fairs in Qakh, Agstafa and Dashkesan regions in June.

The employment centers proposed vacancies to job seekers at fairs in these regions. There are 180 vacancies in 27 institutions in Gakh region, 251 vacancies in 48 institutions in Agstafa region, 270 vacancies in 17 institutions in Dashkesan. The event was also attended by representatives of organizations which offered the vacancies. During the fair, the persons wishing to participate in paid public work or professional training courses that meet the requirements of the labor market were registered.

It should be stressed that job fairs have been held in Baku and six regions of Azerbaijan since the beginning of the year. In general, 919 unemployed and job seekers received jobs, 117 people attended the training courses, 14 people attended the paid public work.

During the reporting period, 13,742 people were provided with suitable jobs, 1,782 people attended the professional training courses and additional education courses, 57 327 people attended the consultations.

Social maintenance

The targeted social assistance was assigned to 560,000 members of 128,000 families in January-June 2014 or by 2,300 people less than in the same period of 2013.

The average amount of the targeted social assistance per one family increased by 10.5 percent and amounted to 133 manat for the last year. Some 107 million manat was spent to fund this assistance in January-May or by 12 percent more than in 2013.

During the reporting period, the country focused on strengthening the social protection of disabled war veterans. The amount of presidential pension for invalids of the first group has been increased to 150 manat, the second group - to 130 manat, the third group - to 100 manat, the Great World War II participants - to 100 manat to improve the social situation of 18,262 war invalids in accordance with the orders of the President of Azerbaijan since April 1, 2014.

Some 145.6 million manat was spent for the payment of social benefits, pensions and compensation in the first half of 2014. During this period 677 Karabakh war veterans, 323 disabled of the Great Patriotic War, in general, 1,000 people received cars during this period. It is planned to complete this process until late August 2014.

Some 38,287 families with two or more children receive targeted social assistance in Azerbaijan today. The number of children under 18 in these families is 285,872 people. Moreover, a number of families also get allowances for certain categories.

Each child under the age of one year old in the families receiving the targeted social assistance, additionally get a monthly allowance in the amount of 45 manat.

Some 39,342 children who have lost a breadwinner are provided with monthly benefits. The mothers having more than five children have received monthly allowances in the amount of 30 manat for each child since January 1, 2014. As of May 1, the total number of mothers having more than five children, is more than 5,300 people.

Today there are more than 63,000 children with disabilities under 18. They also get monthly social allowance.

The achievements in other areas of social policy, such as education, health, the elimination of unemployment testify to the state's care. Creating 65,000 jobs, repair of schools and kindergartens, environmental measures in the first half of this year can be cited as an example.

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