Social sector

July 2006 can be characterized as month full of event directed at the improvement of financial provision of the population and employment.

As a result of increase of salaries of some categories of employees on 1 August 2006 net incomes of Azerbaijani population made up 5704.1m manats, or 20.1% more than 7 months of 2005. Per capita incomes comprised 683.7 manats with a rise of 18.3%. Average per capital income was 97.7 manats a month.

Major indices, characterizing money incomes of the population

Indices

Actual figures in Jan-Jul 2006

As compared to 2005

Net money incomes of population, in bn manats.

5704,1

120,1

Per capita population, in ths manats.

683,7

118,8

Money incomes in hands, in bn manats.

5030,9

120,4

Per capita population, in ths manats

603,0

119,1

Source: State Statistics Committee

In the first half of 2006 the community expenses were distributed in the following way: 70.2% on, purchase of goods and services, 11.8% - obligatory payment and fees, 18.0% - purchase of foreign currency and increase of savings.

Real community incomes after the payment of taxes and membership fees, made up 5030.9m manats, or 20.4% more than last year.

Thus, in the fist 7 months of 2006 the community expenses increased the incomes by 1027.7m manats (including 154.6m manats in July) and comprised 4676.4m manats, or 21.1% up than expenses in January to July 2005 (3861.1m manats).

Salary

The Azerbaijani President has issued several decrees to increase salaries of several categories of employees financed out of the public budget in the country from 1 July 2006.

Thus, the amount of average monthly salary in Azerbaijan as a result of January to July 2006 comprised 136.1 manats, or 20% more than 2005. Over the first 7 months of the average monthly salary exceeded per capita incomes by 39.3%.

However, there is high differentiation of the labor payment on types of economic activities. The payment of agriculture employees turned out lower than the refining industry. The highest salary rate was fixed in extractive industry, as well as financial, leasing and commerce, construction sectors. In January to June the average monthly wage in the production sector comprised 266 manats, construction sector 309.6 manats, which demonstrated 30.1% and 18.7% respectively as compared to 2005. .

The social payments paid at the job places made up 3.6m manats. Major part of benefits fell on employees of electricity gas and water supply, transport, store economy, communications and education.

Pension security

As of 1 July 2006 the State Social Security Fund has registered 1188,600 pensioners, the number of which rose 0.4% as compared to data fixed as of 1 April 2006.

The average monthly pension rose 17% following the relevant decrees by the President dated 30 March and comprised 36 manats.

Average monthly pension rate, in manats

In respect to average monthly salary, %

Q1 of 2006

30,8

23,7

Q1 of 2006

36,0

26,6

In accordance with the Law on Social Benefits, dated 24 February 2006 social pensions were replaced with social benefits. In accordance with the data provided by the Ministry of Labor and Social Security, as of 1 July 2006 a total of 249,200 people were issued in the amount of 4373,900 manats. 51,100 people without rights for labor pensions received compensation for replacement of privileges for communal, transport and other services in the amount of 565,000 manats.

23,700 children from 12,300 families receives befits irrespective of familys incomes. They were children of shehids, war veterans, Chernobyl tragedy veterans, military in active service.

Targeted social aid

The Ministry of Labor and Social Security have defined the list of people, who will receive targeted social aid started from 1 July. The documents of only 36,197 families out of 186,179 hopefuls have been registered at the Center for Social Security of Citizens.

At the resolution of the Cabinet of Ministers, a schedule of a criteria of need to become a beneficiary of targeted social aid is defined as 30 manats (150,000 old manats).

72m manats has been out of the public budget for payment of targeted social aid, which is applied within the framework of two joint projects with the World bank and TACIS.

Labor market

As to situation in the labor market in Azerbaijan in January to July 2006, a season of labor fairs continued.

Thus, in July the Ministry of Labor and Social Security held a fair in Goychay. As a result 47 people have been employed. In general, 24 enterprises offered 115 vacancies.

The Employment Department of the Ministry said that by the end of July the Ministry has held 14 labor fairs in different regions of the country, including the Nakhchivan Autonomous Republic. A total of 424 enterprises with 44,933 jobs participated in the labor fairs and 920 people have been employed, 110 were attracted to public jobs, while 67 were sent to training courses.

In accordance with official statistics, as of 1 August 2006 a total of 3872,600 economically active people were employed in the Azerbaijan, or 0.83% up than 2005.

As of 1 July 2006 a total of 55,295 people were registered at the employment services, whereas as of 1 July they have numbered 55,294 people, while on 1 June it was 55,557. It reveals a cut by 129 people. The similar tendency has been observed since April, when the number of officially unemployed reduced 1082.

Average unemployed benefit comprises 50.8 manats, which is 35.6 of average monthly salary of employees. 51.2% of all those receiving unemployed benefits were women. 4 people claimed at 1 vacancy.

A total of 435,837 jobs have been opened in the period from 1 October 2003 to 1 July 2006, including 221,775 permanent jobs.

Average monthly pension rate, in manats

In respect to average monthly salary, %

Q1 of 2006

30,8

23,7

Q1 of 2006

36,0

26,6

In accordance with the Law on Social Benefits, dated 24 February 2006 social pensions were replaced with social benefits. In accordance with the data provided by the Ministry of Labor and Social Security, as of 1 July 2006 a total of 249,200 people were issued in the amount of 4373,900 manats. 51,100 people without rights for labor pensions received compensation for replacement of privileges for communal, transport and other services in the amount of 565,000 manats.

23,700 children from 12,300 families receives befits irrespective of familys incomes. They were children of shehids, war veterans, Chernobyl tragedy veterans, military in active service.

Targeted social aid

The Ministry of Labor and Social Security have defined the list of people, who will receive targeted social aid started from 1 July. The documents of only 36,197 families out of 186,179 hopefuls have been registered at the Center for Social Security of Citizens.

At the resolution of the Cabinet of Ministers, a schedule of a criteria of need to become a beneficiary of targeted social aid is defined as 30 manats (150,000 old manats).

72m manats has been out of the public budget for payment of targeted social aid, which is applied within the framework of two joint projects with the World bank and TACIS.

Labor market

As to situation in the labor market in Azerbaijan in January to July 2006, a season of labor fairs continued.

Thus, in July the Ministry of Labor and Social Security held a fair in Goychay. As a result 47 people have been employed. In general, 24 enterprises offered 115 vacancies.

The Employment Department of the Ministry said that by the end of July the Ministry has held 14 labor fairs in different regions of the country, including the Nakhchivan Autonomous Republic. A total of 424 enterprises with 44,933 jobs participated in the labor fairs and 920 people have been employed, 110 were attracted to public jobs, while 67 were sent to training courses.

In accordance with official statistics, as of 1 August 2006 a total of 3872,600 economically active people were employed in the Azerbaijan, or 0.83% up than 2005.

As of 1 July 2006 a total of 55,295 people were registered at the employment services, whereas as of 1 July they have numbered 55,294 people, while on 1 June it was 55,557. It reveals a cut by 129 people. The similar tendency has been observed since April, when the number of officially unemployed reduced 1082.

Average unemployed benefit comprises 50.8 manats, which is 35.6 of average monthly salary of employees. 51.2% of all those receiving unemployed benefits were women. 4 people claimed at 1 vacancy.

A total of 435,837 jobs have been opened in the period from 1 October 2003 to 1 July 2006, including 221,775 permanent jobs.

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