Social sector in Azerbaijan (January-May 2010)

Community income

According to the data provided by the State Statistics Committee of Azerbaijan, in January-April 2010, the nominal income of the population totaled AZN 9403.1 million which is 9.5% more as compared to January-May 2009.

During this period, the nominal per capita income made up AZN 1056.7, which exceeds the figure in 2009 by 8.3%. 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-May 2010 the nominal income of the population compared to the same period of 2009 grew by 18.3 percent and per capita income - by 17.1 percent.

Major indices, characterizing money incomes of the population

Source: State Statistics Committee

In January-May 2010, Azerbaijani citizens distributed their income in following way: 69.7% on purchase of goods and services, 9.9% - obligatory payment and fees, 18.7% - purchase of foreign currency and increase of savings.  

Real community incomes after the payment of taxes and membership fees made up 8472.2mln manat, or 10.2% more than last year. Real per capita community income made up AZN 952.1 with rise of 8.9%.

Thus, during the reported period the money expenditure comprised AZN 7484.8mln or AZN 1918.3mln less than the incomes of population, but 12.2% more than the expenses in 2009. (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 in January-May 2010 comprised AZN 313.9 or 1.3% more than the same period of 2009. There is a decline in growth rates of salary as well. Thus, compared with 2008, in January-April 2009 the salary rose by 22.2 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 5.5mln 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 June 1, 2010, the economically active people in Azerbaijan made up 4,336,100 with 4,076,700 involved in economy.

The number of hired employees as of June 1 totaled 1,336,800 people, with 848,200 in public sector and 467,900 people in the private sector.

Of them, 19.2% are involved in production, 2.7% in the extractive industry, 5.6% processing industry, 2.2% power engineering, 1.6% water supply and clean-up, 4.5% in construction, 2.6% in agriculture, forestry and fishing, 2.6% in education, 20.2% in wholesale and retail trade, repair of automobiles, home wares and personal things, 10.2% in health and social services, 5.6% in transport and communications, 3.8% in state governance and defense, 3.2% - scientific and technical activities, 1.8% - information and communications, 1.5% - administrative services, 1.3% - organization of housing and catering, 0.9% - in other service spheres and 0.6% - operation in real estate.

As of June 1, 2010 there were 40,200 unemployed people, with 43.5% women in Azerbaijan. Five people applied for one vacancy in the country. The average unemployment benefit made up 161.3 manat.

Distribution of unemployed individual and those who receive unemployment benefit in regions as of June 1, 2010

Source: State Statistics Committee

Today in Azerbaijan was eliminated most of such a big social problem as unemployment within State program of socio-economic development of regions in 2009-2013. Since 2004, when the task was to open 600,000 new jobs, about 800,000 jobs have been created.

At the same time, an increase was recorded in the number of foreign nationals arriving in Azerbaijan over recent years. Today, according to the restrictions imposed on foreign labor, Azerbaijan seriously regulates immigration matters, to protect the rights of Azerbaijani citizens more reliably. Regulating migration first creates conditions for the work of citizens of Azerbaijan, as well as good conditions for foreigners.

If the number of unemployed in Azerbaijan 10 years ago was 525,000 people, today this figure has fallen to 260,000.

Currently in Azerbaijan 165,730 families benefit the addressed social aid. The average amount paid to each family is 115 manat. Taking into account the rise in living standards and incomes of the population, it is projected that by the end of this year, aid will be provided to 145,000.