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Social sector in Azerbaijan (January-May 2011)

Analysis Materials 18 July 2011 17:00

The Parliament of Azerbaijan approved the amendments to the Labor Code. Under the changes, the retirement age of employees of institutions financed from the state budget was determined at the age of 65.

Community income

According to the data provided by the State Statistics Committee of Azerbaijan, in January-May 2011, the nominal income of the population totaled AZN 11.192.5 billion which is 16.5% more as compared to January-May 2010.

Thus, during this period, the nominal income of the population per capita increased by 15.0 percent to 1.241.8 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-May 2010, the nominal income rose by 9.5 percent, while per capita income by 8.3 percent.

Major indices, characterizing money incomes of the population

Indicators

Actual figures in 2011

As compared to 2010 (%)

Net money incomes of population, in mln manats.

11192,5

116,5

Per capita population, in ths manats.

1241,8

115,0

Money incomes in hands, in mln manats.

10282,2

117,8

Per capita population, in ths manats

1140,8

116,3

Source: State Statistics Committee

In January-May 2011, Azerbaijani citizens distributed their income in following way: 67.8% on purchase of goods and services, 8.1% - obligatory payment and fees, 22.4% - purchase of foreign currency and increase of savings.

Real community incomes after the payment of taxes and membership fees made up 10.282.2bln manat, or 17.8% more than last year. Real per capita community income made up AZN 1.140.8 with rise of 16.3%.

Thus, during the reported period the money expenditure comprised AZN 8.495.1b ln or AZN 2.697.4bln less than the incomes of population, but 13.5% more than the expenses in 2010 . (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 2011 comprised AZN 349.6 or 11.4% more than the same period of 2010.

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.

So, wages in the extractive industry exceed the average wages in the country by 3.4 times and the wages in the public sector - 4.12 times.

According to State Statistics Committee, in January-May 2011 the average wage in the processing industry reached 1,190 manat (an increase of 14.5 percent annually) or higher than the average wages in the oil sector (1,174 manat). The average salary in the industry as a whole amounted to 515,9 manat (+17.5 percent), processing industry - 3,339.6 manat (+22 percent).

The wages in non-oil sector as of June 1 was 326.2 manat, in the public sector - 288.6 manat, in the non-public sector - 454.9 manat.

Labor market

As of June 1, there were 40,000 unemployed people, the State Statistics Committee reported. Four unemployed claim for one vacancy in the country. The number of officially unemployed decreased by 7.7 percent compared to the same period of the last year, but increased by 0.2 percent as compared to the last month.

During the reported period, the economically active people in Azerbaijan made up 4,592,100 including 1,362,100 people as hired workers. Of the hired people, 851,600 people work in the public sector and 494,200 - in private.

Of the hired employees involved in the production spheres: 20.3 percent in industry, 2.6 percent in extracting and 5.7 in processing, 5.2 percent in construction, 2.9 percent in agriculture, forestry and fishing, 25.7 percent in education, 20 percent in wholesale and retail trade, repair of automobiles, home wares and personal things, 10.1 percent in health and social services, 4.7 percent in transport, 1.8 percent - in communications, 0.7 percent - in real estate operations, 4 percent - in public administration and defense, social security and one percent - in other spheres.

The average amount of unemployment benefit was 178.7 manat during the reported period.

According to the Ministry of Labour and Social Protection of Azerbaijan, as of June 1, targeted social aid in Azerbaijan was received by 131,122 families. Of these 51,628 are families with three or more children. The average monthly TSA per capita is 23.6 manat, per family - 105.82 manat.

The cost of living in Azerbaijan in 2011 was increased by 9.2 percent - up to 95 manat. The living cost for working-age population in 2011 was set at 102 manat, for pensioners - 72, for children - 76 manat.

As of June 1, 2011 the largest number of unemployed was registered in Baku and eighteen districts of Aran economic region.

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

Individuals with unemployed status

Individuals who receive unemployment benefits

Baku

13117

743

Absheron region

1192

411

Ganja-Gazakh

2790

182

Shaki-Zarqatala

1435

158

Lankaran

1253

49

Guba-Khachmaz

1130

106

Aran

11161

500

Nagorno-Karabakh

4421

115

Kalbajar-Lachin

1922

67

Shirvan

1580

67

Nackchivan

33

2

Source: State Statistics Committee

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