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Social sector

Analysis Materials 7 June 2009 12:20 (UTC +04:00)

Incomes of Population

According to the data provided by the State Statistics Committee of Azerbaijan, in January to April 2009, the nominal income of the population totaled AZN 6,738,000 which is 20.3% more as compared to 2008. During this period, the nominal per capita income made up AZN 781.2, which exceeds the figure in 2008 by 18.9%. The rise in salaries in various spheres of economy and rise in social benefits also contributed to the growth in population income  

Major indices, characterizing money incomes of the population

Indices

Actual figures in January - April 2009

As compared to January-April 2008 (%)

Net money incomes of population, in mln manats. 

6738,0

120,3

Per capita population, in ths manats.

781,2

118,9

Money incomes in hands, in mln manats.

6035,3

121,3

Per capita population, in ths manats

699,7

119,9

Source: State Statistics Committee

In January to April 2009, Azerbaijani citizens distributed their income in following way: 68.0% on purchase of goods and services, 10.4% - obligatory payment and fees, 21.6% - purchase of foreign currency and increase of savings.  

Real community incomes after the payment of taxes and membership fees, made up 6035.3mln manats, or 21.3% more than last year. Real per capita community income made up AZN 699.7 with rise of 19.9%.

Thus, during the report period the money expenditure comprised AZN 5284.5mln, or AZN 1453.5mln less than the incomes of population, but 18.9% more than the expenses in January to April 2008. (Source: State Statistics Committee, calculations by Trend)

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. Thus, the amount of average monthly salary in Azerbaijan as a result of January to April 2009 comprised AZN 295.7, or 24.5% more than January-April 2008. The sum of salary increased 1.3% compared to March 2009 (AZN 292) and 10.3% to December 2008 (AZN 268).

During the report period, average salary exceeded average community expenses per capita income (195.3 manat) by 51.4% per month.

In spite of rise in salaries of various organizations, this indicator retains its differentiation across the country. The highest salary accounts for industry, finance, operations with real estate, rent and consumer services and construction sector.

Employees of enterprises and organizations received social benefits in the amount of 3.4mln manat. Major beneficiaries were employees of the extractive industry, energy, gas and water producing and distributing enterprises, refining industry, transport and communications.

Labor market

As of May 1, 2009, the economically active people in Azerbaijan made up 4,322,300 with 4,061,000 involved in economy, including 1,383,500 people as hired workers.

Some 20.1% of economically active people are involved in the production spheres in industry on hire. They are 12.6% in industry, 4.8% in construction, 2.7% in agriculture, forestry and fishing, 25.5% in education, 19.5% in wholesale and retail trade, repair of automobiles, home wares and personal things, 10.1% in health and social services, 6.9% in transport and communications, 6.2% in communal, social and personal services, 5.0% in operations with real estate and rent, 4.2% in state government and defense, and 2.5% in other spheres.

The number of foreigners involved in economic activity in Azerbaijan during the first quarter of 2009 totaled 5,000, of whom 1,400 in industry, 1,500 - construction, 6,000 - operations with real estate, 5,00 - trade, 4,00 - education and 6,00 in other areas.

As of May 1, there were 44,004 unemployed people, with 46.1% women.

In January to April 2009 the number of unemployed reduced 2.6% compared to the first quarter of 2008.

Five people applied for one job compared to four as of December and three in September 2008. Average unemployment benefit made up 148.6 manat.

During January-March 2008 the country opened 17,416 new jobs, including 14,197 permanent. Most of the jobs created (68.5%) accounted for the regions.

Pension provision

As of April 1, 2009, State Social Protection Fund of Azerbaijan (SSPFA) registered 1,283,800 pensioners (15% of total population of the country).

Of them, 65% retired due to age, 24% - disability, 11% - loss of head of family.

The average amount of the pension increased 29% and totaled AZN 98.79. The average pension made up only 34% of the average salary. The Government of Azerbaijan intends to increase the average pensions up to the average salary.  

In January-March 2009, 400.6mln manats of SSPFA expenditures accounted for pension payments, an increase of 38%. Of the total amount of these funds, 389.9mln manat have been paid as pension, 10.7mln manat - social security benefits. In addition, 3.9mln manat was paid in connection with the birth of children, 3.4mln manat - disability, 1.9mln manat - in connection with the funeral, 1.5mln manat - other benefits.

According to the information provided by the Social Protection Fund, in the first quarter, social security benefits totaling 9.86mln manat was provided to 286,900 people. At the same time, 18,200 people received benefits under pension age, 90,400 people - disability, 31,200 people - loss of head of family, and the number of children under 18 years of age receiving benefits due to lack of labor ability totaled 56,500.

Nearly 508,880 people are men, 774,860 - women. The number of civil servants retired for the period amounted to 128,090 people.

Eligibility for labor pension in Azerbaijan for women aged 57 years, men - 62 years in case of 5-year length of service.

Social provision

According to the information provided by the Ministry of Labor and Social Protection, in January-March 2009, 173,300 families, or 791,300 people received benefits on the basis of targeted social assistance (TSA). Each family, who receives targeted social aid, is paid aid worth 99.37 manat and 21.76 manat for each member per month. About 12,840 people who have one-year old babies (1.6 percent) receive additional 20 manat.

Roughly 91.3 percent of individual receive targeted social aid via plastic cards.

About 41 percent or 70,960 people have a family with many children and 23,310 people or 13.5 percent are disabled.

As many as 77.6 percent receive social aid for the first time, 17 percent for fourth time and 21 percent third time.

About 791,020 people receive aid which makes up 9.3 percent of families nationwide.

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