Baku, Azerbaijan, Jan. 11
By Anvar Mammadov – Trend:
The number of those applying to Azerbaijan’s employment agencies decreased by 1.7 times in 2017, Salim Muslumov, minister of labor and social protection of the population, said at a meeting of the Cabinet of Ministers chaired by President Ilham Aliyev dedicated to the results of socioeconomic development of the country in 2017 and future objectives.
He said that stability was maintained in the country’s labor market, where 111,000 young people entered in 2017.
“Last year, the number of registered labor contracts increased by 44,700 people,” he said. “The Commission for the Regulation and Coordination of Labor Relations played an important role in this. Reduction in the number of applications to the employment agencies is one of the indicators of stabilization in the labor market. Thus, if 204,000 appeals were made to the employment agencies in 2016, their number decreased by 1.7 times in 2017 and amounted to 118,000.”
Muslumov noted that the positive trends in the labor market have led to an increase in fees for compulsory social insurance.
“The volume of social payments in the non-oil sector amounted to 1.338 billion manats in 2017, which is 10.8 percent or 130 million manats more than in 2016,” he said. “The budget forecast was executed by 103 percent. The volume of revenues allowed timely financing of expenses for pensions and social payments in the amount of 3.4 billion manats.”
The minister added that as a result of the reforms carried out last year, the pension system was cleared of non-insurance elements, liabilities of the pension and insurance system were completely separated from the state budget liabilities, the “open account” principle was applied in the individual accounting system and the working pensioners were given the opportunity to increase their pension every 72 months by using funds accumulated in their personal accounts.
“In six months [since the amendments to the legislation were made], 17,430 people used this right and their monthly pensions have increased by an average of 146 manats, which means that additional 2.5 million manats are spent monthly for the payment of these increments to pensions,” he said.
(1.7001 manats = 1 USD on Jan. 11)