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Social sector in Azerbaijan (January-July 2014)

Analysis Materials 10 September 2014 15:42 (UTC +04:00)

The dynamic increase in real income of the population, poverty level decrease, an increase in employment, the efficient use of human resources, improvement of the living conditions of disabled war veterans and martyrs' families, the creation of a medical and social rehabilitation system in accordance with modern requirements, an increase in payments to the population prove the perfection of Azerbaijan's social policy.

Population's income

According to the Azerbaijani State Statistics Committee, the nominal income of the population totaled 21.019.3 billion AZN in January-July 2014, which is 4.7 percent more compared to January-April 2013.

Thus, during this period, the nominal income of the population per capita increased by 3.4 percent and hit 2.239.1 AZN.

Major indices, characterizing income of the population

Indices

Jan.-July 2014

Compared to Jan.-July 2013, %

nominal income of population, in mln AZN

21019,3

104,7

Per capita, AZN

2239,1

103,4

Income of population, in mln AZN

19104,6

105,2

Per capita, AZN

2035,1

103,9

Source: State Statistics Committee

The population's income after paying all required fees and membership fees made up 19.104.6 billion AZN, which is 5.2 percent more than in the same period of 2013. Real income per capita increased by 3.9 percent to 2.035.1 AZN.

Azerbaijani citizens spent 70.3 percent to purchase goods and services, 9.1 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 17,235,81 billion AZN in January-July 2014 or 3,782,5 billion AZN less than the income of the population but by 14.2 percent more than the population's expenditure in January-July 2013 (according to the Azerbaijani State Statistics Committee's data, Trend's calculations.

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 hired employees' average monthly salary in Azerbaijan in January-June 2014 comprised 439.8 AZN compared to 410.8 AZN as of 2013.

As of July 1, 2014, the average salary of temporary staff was 268.7 AZN, while employees involved upon civil contracts - 304.1 AZN.

Remuneration in the oil sector reached 1.777.6 AZN per month, the non-oil sector - 406.0 AZN, the public sector - 354.3 AZN, the private sector - 566.5 AZN.

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

Thus, as of the first half of 2014, around 96,700 people were involved in the construction sector. The nominal salary in the construction sector amounted to 622.3 AZN, which is 1.5 percent more than in the same period of last year. The average monthly salary in the public sector amounted to 501.6 AZN (a 2.2 percent growth for six months), the private sector - 676.1 AZN (with a 0.7 percent growth).

The salary in the sphere of building construction decreased by 2.1 percent - an average of 556 AZN, specialized construction increased by 19.6 percent - up to 894.9 AZN, civil construction work decreased by 12.2 percent - up to 498.8 AZN in January-June 2014.

Labor market

As of August 1, 2014, around 36,700 people were officially registered as unemployed in Azerbaijan, including 40.7 percent of women.

As of early August 2014, the economically active population totaled 4.803.4 million people, of which 4.565.6 million people were engaged in labour activity.

Thus, as of August 1, 2014, the number of hired employees hit 1.510.9 million people, including 891,600 people worked in the public sector, and 619,300 people - in private sector.

The number of people working in the oil sector amounted to 37,200 people, in the non-oil sector - 1.473.7 million people. Around 1.466.1 million people among hired employees work in non-agricultural sphere.

Around 22.6 percent fall to the hired employees involved in the production spheres: 7 percent in construction, 6.6 percent in manufacturing industry, 2.9 percent in agriculture, forestry and fishing, 2.5 percent - in the mining industry, 1.9 percent - in the production and distribution of electricity, gas and steam, 1.7 percent - in water supply, waste recycling,

22.3 percent in education, 18.7 percent - trade, repair of vehicles, 8.7 percent - medical and social services, 6.6 percent in state governance and defense, social maintenance, 5.1 percent - transportation and warehousing, 3.8 percent - recreation, entertainment and arts, 3.6 percent - professional, scientific and technical activities, 1.9 percent - financial and insurance activities, 0.9 percent - real estate transactions, 1.6 percent - administrative and additional services, 1.4 percent - tourist accommodation and food service and 1.1 percent - other areas, 1.7 percent - communication and information.

As of August 1, 2014, the largest number of unemployed was registered in Baku (13,861 people, of which 756 people received unemployment benefits) and eighteen regions of Aran economic region (9,932 and 437 people respectively).

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

Region:

Individuals with unemployed status:

Individuals receiving unemployment benefits:

Baku

13 861

756

Absheron region

1 765

331

Ganja-Gazakh

2 252

218

Sheki-Zaqatala

1 054

115

Lankaran

1 004

86

Guba-Khachmaz

1 183

94

Aran

9 932

437

Upper-Karabakh

3 238

100

Kalbajar-Lachin

1 416

61

Mountain Shirvan

957

49

Nakhchivan

-

-

The dole increased by 0.49 percent in Azerbaijan in July compared to June. Taking into account the decline in consumer prices per month (0.8 percent), the real amount of the dole increased by 1.29 percent.

As of August 1, 2014, the dole was 247.4 AZN compared to 246.2 AZN as of July 1 and 268.5 AZN as of early 2014. As of August 1, 2014, some 2,247 people received the dole compared to 2,459 people as of July 1 and 636 people compared to early 2014.

The Azerbaijani government continues taking measures to increase the employment level. The State Employment Service under the Ministry of Labour and Social Welfare provided 500 people having a need of social protection with jobs in accordance with the quotas within six months of 2014.

Some 115 people of the total number of those provided with jobs accounted for invalids, 105 - refugees and internally displaced persons, 122 - parents having one or more minor children, 91 - young people under 20 years old, 13 - war veterans, 12 - members of the martyrs' families, 13 - those released from prison and so on.

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