Social sector in Azerbaijan (January-February 2011)

The indexation of pensions is conducted in Azerbaijan from the rate of the consumer inflation for 2010 (5.7 percent). After indexing, the average pension in the country will total 114 manat.

Azerbaijani President Ilham Aliyev has signed a decree on the indexation of the insurance part of the labor pensions.

The State Social Protection Fund was instructed to increase the insurance part of all types of the labor pensions as of Jan. 1, 2011 in accordance with the consumer prices index, carry out indexation of the amount of pension capital accumulated in the insurance part of individual accounts in the individual account system and the Cabinet of Ministers was instructed to resolve the issue arising from the decree.

Community income

According to the data provided by the State Statistics Committee of Azerbaijan, in January-February 2011, the nominal income of the population totaled AZN 4158.4 million which is 14.5% more as compared to January-February 2010.

Thus, during this period, the nominal income of the population per capita increased by 13 percent to 462.1 manat.

Thanks to the socially oriented programs and government decrees, the rate of income growth surpassed last year's growth rate for this indicator. So, in January-February 2010, the nominal income rose by 4.3 percent, while per capita income by 3.1 percent.

Major indices, characterizing money incomes of the population


Actual figures in 2011

As compared to 2010 (%)

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-February 2011, Azerbaijani citizens distributed their income in following way: 71.1% on purchase of goods and services, 8.3% - obligatory payment and fees, 18.5% - purchase of foreign currency and increase of savings.

Real community incomes after the payment of taxes and membership fees made up 3815.1mln manat, or 15.7% more than last year. Real per capita community income made up AZN 423.9 with rise of 14.3%.

Thus, during the reported period the money expenditure comprised AZN 3326.7mln or AZN 831.7mln less than the incomes of population, but 14.8% more than the expenses in 2010. (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 2011 comprised AZN 332.3 or 11.4% more than the same period of 2010.

The average salary of freelancers totaled 177.1 manat in 2011, and workers involved upon contract - 313.3 (302.1) manat. In 2006, the average monthly salary was equivalent to 141.3 manat, in 2007 - 214 manat, in 2008 - 268 manat, in 2009 - 298 manat, in 2010 - 325 manat.

In February 2011, average wages 43.8 percent exceeded the average cash income per capita per month (231.5 AZN).

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.

Labor market

As of March 1, there were 39,500 unemployed people, including 43.4 percent - women in Azerbaijan, the State Statistics Committee reported. Four unemployed claim for one vacancy in the country. The number of officially unemployed increased by 303 people.

During the reported period, the economically active people in Azerbaijan made up 4,565,800 including 1,370,700 people as hired workers. Of the hired people, 836,000 people work in the public sector and 494,900 - in private.

In addition, during the reported period, 36,400 people were involved in the oil sector, 1,294,500 people in the non-oil and 1,291,600 people - in non-agricultural sector of the economy.

Of the hired employees involved in the production spheres: 20.4 percent in industry, 2.6 percent in extracting and 5.8 in processing, 2.3 percent in electricity and gas, 1.7 percent water supply, 5 percent in construction , 3 percent in agriculture, forestry and fishing, 25.8 percent in education, 20.1 percent in wholesale and retail trade, repair of automobiles, home wares and personal things, 4.7 percent in transport, 4.1 percent - recreation and entertainment, 4 percent - public administration and defense, compulsory social security, 3.2 percent - in professional, scientific and technical activities, 1.8 percent - information and communications, 1.6 percent - provision of administrative services , 1.3 percent - areas of tourist accommodation and food services, 1.3 percent - financial and insurance activities, 0.9 percent - in other spheres.

According to the data provided by the Migration Department under the Ministry of Labour and Social Protection of Azerbaijan, in January 2011, foreign nationals were issued 8,708 permits to engage in employment in the economy of Azerbaijan, of whom 8,225 were men and 483 women. The structure of employment of foreigners in various spheres of Azerbaijan's economy looks like: 3,792 people in construction, 2,510-mining industry, 579 in manufacturing, 351 in education, 334 retail and wholesale trade, 256 in housing, 208 in information and communication, 124 in finance and insurance, 92 in the field of science and technology, 72 in health and social services, 70 in real estate, 59 in transportation 53 in agriculture and fishing, and 208 people in other spheres .

The average amount of unemployment benefit was 190.7 manat as of March 1, 2011, compared to 184.4 manat manat as of Feb. 1, 2011 and 190.7 manat - Jan. 1, 2010.

As of March 1, 2011, unemployment benefit was provided to 992 people compared to 514 people as of Feb. 1, 2011.

Distribution of unemployed individual and those who receive unemployment benefit in regions as of March 1, 2011

Individuals with unemployed status

Individuals who receive unemployment benefits




Absheron region






























Source: State Statistics Committee

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