Social sector in Azerbaijan (Jan-Sept. 2014)

A dynamic 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.

Population's income

According to the Azerbaijani State Statistics Committee, the nominal income of the population totaled 27.168 billion AZN in January-September 2014, which is 5.4 percent more compared to January-September 2013.

Thus, during this period, the nominal income of the population per capita increased by 4 percent and hit 2890.3 AZN.

Major indices, characterizing income of the population

Source: State Statistics Committee

The population's income after paying all required fees and membership fees made up 24.682 billion AZN, which is 5.9 percent more than in January-September 2013. Real income per capita increased by 4.5 percent to 2625.7 AZN.

Azerbaijani citizens spent 70.1 percent to purchase goods and services, 11.8 percent - to pay for taxes, duties, loans, social and insurance fees, 18.1 percent - to accumulate the capital during this period.

The population's expenditure amounted to 22.251 billion AZN in January-September 2014 or 4.917 billion AZN less than the income of the population but by 10.49 percent more than the expenses in January-September 2013 (according to the Azerbaijani State Statistics Committee, 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 average monthly salary in Azerbaijan in January-August 2014 comprised 440.9 AZN compared to 413.8 AZN as of the same period of 2013.

As of September 1, 2014, the average salary of temporary staff was 265.1 AZN, while employees involved upon civil contracts - 306.4 AZN.

Remuneration in the oil sector reached 1746.3 AZN per month, the non-oil sector - 407.9 AZN, the public sector - 356.3 AZN, the private sector - 565.5 AZN.

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

As of the eight months of 2014, around 98,100 people were involved in the construction sector of Azerbaijan. The nominal salary in the construction sector amounted to 627.2 AZN, which is 1.3 percent more than in the same period of last year. The average salary in the public sector amounted to 508.8 AZN (2.6 percent growth), while in the private sector - 679.5 AZN (0.4 percent growth).

The salary in the field of building construction decreased by 1.7 percent - an average of 556 AZN, specialized construction increased by 22.4 percent - up to 923.2 AZN. The salary in the field of civil construction work decreased by 16.5 percent - up to 499.5 AZN in January-August 2014.

Labor market

As of Oct. 1, 2014, some 29,100 people were officially registered as unemployed in Azerbaijan, including 39.9 percent women.

Thus, the number of unemployed has decreased by 19.6 percent 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 October 2014, the economically active population is 4.820 million people, of which 4.582 people were engaged in labor activity. In this case, as of October 1, 2014, the number of hired persons is 1.511 million people, including 892,800 people worked in the public sector, and 618,600 people - in private sector.

The number of people working in the oil sector amounted to 36,500 people, in the non-oil sector - 1.474 million people. Around 1.467 million people among hired employees work in non-agricultural sphere.

Around 22 percent fall to the hired employees involved in the production spheres: 6.8 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 percent - in the production and distribution of electricity, gas and steam, 1.7 percent - in water supply, waste recycling, 22.5 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 Oct. 1, 2014 (people)

As of Oct. 1, 2014, the largest number of unemployed (11,263 people, of which only 502 people received benefits) was registered in Baku and Aran economic region 7,358 and 313 people respectively).

The average unemployment benefit in Azerbaijan is 256.1 AZN.

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 has provided 814 people in need of social protection according to the quotas since early 2014.

Around 191 people of a total number of people provided with jobs are disabled people, 172 - refugees and IDPs, 172 - parents having one or more minor children, 148 - young people aged under 20, 32 - war veterans, 20 - members of the families of martyrs, 19 - those released from prison, and so on.

The quotas are determined proceeding from the average annual number of employees in the company in accordance with the decision of the Cabinet of Ministers of Azerbaijan No213 dated November 22, 2005. If the number of employees is from 25 to 50 people, the quota is determined in the amount of three jobs, from 50 to 100 - four jobs, more than 100 - five jobs.

The State Employment Service of the Azerbaijani Labor and Social Protection Ministry has provided 22,700 people with jobs since early 2014.

Social maintenance

Around 334,650 people get the monthly social benefits in Azerbaijan. According to the ministry, as of October 1, 2014, around 425,650 people received benefits, which is 4.4 percent of the total population. Around 334,650 people or 78.6 percent received monthly benefits, while 91,000 persons or 21.4 percent - a lump-sum payment.

A 17.1 percent decrease in the number of the families in need in the targeted social assistance (TSA) was observed in Azerbaijan. According to the ministry, as of Oct. 1, around 112,092 families (491,409 people) received TSA compared to 135,199 families a year earlier. By reducing the number of TSA recipients, the amount of TSA per family increased from 129.82 AZN to 137.67 AZN per month.