Social sector (January 2010)

Analysis Materials 12 March 2010 12:18 (UTC +04:00)

Incomes of Population

According to the data provided by the State Statistics Committee of Azerbaijan, in January 2010, the nominal income of the population totaled AZN 1526.9 million which is 6.4% more as compared to January 2009. During this period, the nominal per capita income made up AZN 171.9, which exceeds the figure in 2009 by 5.1%. The rise in salaries in various spheres of economy and rise in social benefits also contributed to the growth in population income. However, despite the growing indicators, the growth rate of population's incomes has declined. Thus, in January 2009 the nominal income of the population compared to the same period of 2008 grew by 21.9 percent and per capita income - by 20.5 percent.

Major indices, characterizing money incomes of the population


Actual figures in 2010

As compared to 2009 (%)

Net money incomes of population, in mln manats. 



Per capita population, in ths manats.



Money incomes in hands, in mln manats.



Per capita population, in ths manats



Source: State Statistics Committee

In January 2010, Azerbaijani citizens distributed their income in following way: 82.7% on purchase of goods and services, 10.7% - obligatory payment and fees, 4.7% - purchase of foreign currency and increase of savings.  

Real community incomes after the payment of taxes and membership fees made up 1363.1mln manat, or 7.0% more than last year. Real per capita community income made up AZN 153.5 with rise of 5.8%.

Thus, during the reported period the money expenditure comprised AZN 1426.1mln, or AZN 100.8mln less than the incomes of population, but 2.4% more than the expenses in 2009. (Source: State Statistics Committee, calculations by Trend)


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 in January 2010 comprised AZN 296.9 or 2.0% more than the same period of 2009, There is a decline in growth rates of salary as well. Thus, compared with 2008, in January 2009 the salary rose by 26.5 percent.

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 amount of 13.2mln 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 February 1, 2010, the economically active people in Azerbaijan made up 4,332,600 with 4,072,500 involved in economy, including 1,376,100 people as hired workers.

They are 12.0% in industry, 4.9% in construction, 2.8% in agriculture, forestry and fishing, 25.5% in education, 19.8% in wholesale and retail trade, repair of automobiles, home wares and personal things, 10.2% in health and social services, 6.7% in transport and communications, 6.3% in communal, social and personal services, 5.0% in operations with real estate and rent, 4.1% in state government and defense, and 2.7% in other spheres.

According to data provided by the Labor and Social Protection Ministry, today 5,784 people from 80 countries are engaged in labor activities in Azerbaijan on the basis of individual permissions, which is 1.4 times higher than in 2008, and the number of prolonged individual permissions increased during the year by 3.4 times.

Increasing state duty for a license for labor migrants' activity led to their legalization by 1.4 times compared to 2008. Currently the cost of permission is 1,000 manat. In 2009 more than 4.5 million manat was transferred to the Public budget due to permission provided to the foreigners.

One of the main goals of the government of Azerbaijan within the anti-crisis measures is to maximally ensure labor market with local employees. For this purpose, on 4 June 2009, the Cabinet of Ministers of Azerbaijan approved the regulation of determining the quota for migrant workers. Increasing the penalties up to 30-35,000 manat, as well as introducing the state fee for the use of migrant labor up to 1,000 manat in Azerbaijan force local entrepreneurs to hire mostly Azerbaijani workers.

As of February 1, 2010 there were 41,100 unemployed people, with 44.0% women in Azerbaijan. In January 2010, the unemployment declined 0.2%. the decline can be explained through labor fairs.   

Five people applied for one job in the country. The average unemployment benefit made up 173.8 manat. In 2009, 73,613 new workplaces were opened in Azerbaijan, including 54 515 permanent workplaces. 

Of the jobs created, 27.3 percent accounted for Baku, 70.3 percent - the regions of the country. 91.8 percent of new jobs were created in the private sector. Most of the new jobs accounted for the non-oil sector: 5.9 percent in the construction sector, 3.8 percent - wholesale and retail trade, repair of motor vehicles and motorcycles, 3 percent - processing industry, 1.8 per cent - transport and storage facilities, 1.7 percent - agriculture and others.