Social sector in Azerbaijan (January-June 2011)

Community income

According to the data provided by the State Statistics Committee of Azerbaijan, in January-June 2011, the nominal income of the population totaled AZN 13.489.2 billion which is 17.0 more as compared to January-June 2010.

Thus, during this period, the nominal income of the population per capita increased by 15.5 percent to 1.495.8 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-June 2010, the nominal income rose by 9.7 percent, while per capita income by 8.4 percent.

Major indices, characterizing money incomes of the population

Source: State Statistics Committee

In January-June 2011, Azerbaijani citizens distributed their income in following way: 67.5% on purchase of goods and services, 8.2% - obligatory payment and fees, 22.6% - purchase of foreign currency and increase of savings.

Real community incomes after the payment of taxes and membership fees made up 12.380.5bln manat, or 18.3% more than last year. Real per capita community income made up AZN 1.372.9 with rise of 16.8%.

Thus, during the reported period the money expenditure comprised AZN 10.211.3b ln or AZN 3.277.9bln less than the incomes of population, but 11.6% 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-June 2011 comprised AZN 351.3 or 10.7% more than the same period of 2010.

The average monthly salary in Azerbaijan in June 2011 rose by 0.48 percent as compared to May (349.6 AZN). Given the deflation of 0.9 percent during the month, the real income of wage earners in June rose by 1.48 percent. As a result of June 2011, the average wage by 40.9 percent exceeded average monthly income per capita per month (249.3 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.

So, wages in the extractive industry exceed the average wages in the country by 3.42 times and the wages in the public sector - 4.13 times.

According to State Statistics Committee, in January-June 2011 the average wage in the processing industry reached 1,200,9 manat (an increase of 15 percent annually) or higher than the average wages in the oil sector ( 1,185,6 manat). The average salary in the industry as a whole amounted to 520,9 manat (+18.1 percent), processing industry - 343,8 manat (+22.2 percent).

The wages in non-oil sector as of July 1 was 327.8 manat, in the public sector - 290.7 manat, in the non-public sector - 455.9 manat. The average wage in Azerbaijan at the reporting date was estimated at 351.3 manat.

In June, Azerbaijani President Ilham Aliyev signed an order to increase the monthly wages of servicemen and civil employees of the Defence Ministry. Under the order, the monthly salaries of servicemen increased by an average of 25 percent and monthly salaries of civil employees of the Defence Ministry by an average of 10 percent.

The Government of Azerbaijan in June decided to improve the financial security of employees of the Anti-Corruption Office under the Prosecutor General's Office. In connection with the specific work conditions of the Office, their salaries increased by 50 percent.

Labor market

As of July 1, there were 40,083 unemployed people, with 43 percent woman, the State Statistics Committee reported. Four unemployed claim for one vacancy in the country. The number of officially unemployed increased by 49 people.

During the reported period, the economically active people in Azerbaijan made up 4,593,400 including 1,362,100 people as hired workers. Of the hired people, 852,700 people work in the public sector and 495,400 - 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, 5.3 percent in construction, 2.9 percent in agriculture, forestry and fishing, 25.7 percent in education, 19.9 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.

The Ministry of Labour and Social Protection of Azerbaijan strengthens mechanism of control on labor relations. This theme is very urgent today. About 770 labor contracts were restored in the first half, which is a low indicator.

The Ministry stated that the number of accidents in production increased in the first half year. The reason for this is the revival in the construction sector. During the reporting period, 128 accidents were recorded, which killed 53 people.

As of July 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 July 1, 2011

Source: State Statistics Committee

In January-June 2011, the unemployment benefit in Azerbaijan fell by 6.3 percent since the beginning of the year, although in June it grew by 0.2 percent compared to May.

The average unemployment benefit as of July 1, 2011 was 178.8 manat compared to 178.4 manat as of June 1, 179.2 manat as of May 1, 187.7 as of April 1, 190.7 as of March 1, 184.4 manat as of Feb. 1, 190.9 as of Jan. 1, 2011 and 176.5 manat as of Jan.1, 2010.

As of July 1, 2011, the benefit was received by 2,716 people compared to 2,400 people as of June 1, 1,961 as of May 1, 1,513 as of April 1, 992 people as of March 1, 514 people as of Feb. 1, 87 as of Jan. 1, 2011.