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Social sector in Azerbaijan (Jan.-July 2012)

Analysis Materials 12 September 2012 11:03 (UTC +04:00)

Azerbaijani President Ilham Aliyev signed a decree on the establishment of the State Agency for Public Services and Social Innovation under the Azerbaijani President on July 13.

The state agency is being created to increase transparency in the activity of state agencies, to render more high quality, convenient services for citizens by using new methods and modern innovations, to observe ethical rules towards citizens, given the need to meet the citizens' demand, to improve the services and to accelerate the transition to electronic services.

This state agency will manage specially created centers "ASAN xidmet", coordinate the activity of staff of state bodies, which will work in the centers, monitor and estimate, deal with mutual integration of databases of state agencies, accelerate using e-services, improve governance in the sector.

In early July, President Aliyev signed a decree on the establishment of scholarship of the Azerbaijani President for the participants of the Great Patriotic War of 1941-1945.

According to the decree, the presidential scholarships was set to the amount of 55 manat for the participants of the Great Patriotic War (except for the war-disabled) to strengthen social protection and ensure the state care about the participants of the Great Patriotic War of 1941-1945.

According to the decree, the scholarship is paid by the Ministry of Labor and Social Protection using the funds envisaged in the state budget section on social protection and social security. The Cabinet of Ministers was instructed to solve other issues arising out of this order.

Population's income

According to the Azerbaijani State Statistics Committee, in January-July 2012, the nominal income of the population totaled 18.231.8 billion manat which is 13.9 percent more as compared to the same period of 2011.

Thus, during this period, the nominal income of the population per capita increased by 12.7 percent and hit 1.992.8 manat. The average monthly income per capita was 284.7 manat.

The growth rate of income per capita exceeded the growth in consumer prices by 10.3 percent.

The process of issuing bank deposits remaining from the Soviet period continued in July. This also serves to strengthening the social security of the Azerbaijani population.

Major indices, characterizing income of the population

Indices Actual figures for Jan.-July 2012 Compared to Jan.-July 2011, percent

nominal income of population, in mln manat

18231,8 113,9
Per capita, manat 1992,8 112,3

Income of population, in mln manats.

16631,9 114,2
Per capita, manat 1818,0 112,7

Source: State Statistics Committee

In January-July 2012, Azerbaijani citizens spent their income in following way: 63.2 percent on purchase of goods and services, 8.8 percent - payment of taxes, duties and fees, 1.8 percent - payment of credit, 26.2 percent - capital accumulation.

Real income after the payment of taxes and membership fees made up 16.6 bln manat in Jan.-July or 14.2 percent more than the same period of 2011. Real income per capita made up 1.818.0 manat with a growth of 12.7 percent.

Thus, during this period the expenditure in Jan.-July 2012 comprised 13.454.8 bln manat or 4.777 million manat less than the income of population, but 10.8 percent more than the expenses in the same period of 2011. (Source: State Statistics Committee, calculations by Trend).

The gap in the amount of revenues and expenditures of the population in favor of income, testifies to the growth of material well-being of Azerbaijani citizens. The differentiation in population's income and the availability of the Gini coefficient in the country should be taken into account.

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. According to the data provided by the Azerbaijani State Statistics Committee, the amount of average monthly salary in Azerbaijan in January-June 2012 comprised 384.5 manat or 8.3 percent more than the same period of 2011.

The highest salary was fixed in the mining industry, financial sphere, information and communication, scientific and technological activity, as well as in the construction sector.

According to the State Statistics Committee, the average salary in the oil sector accounted for an average of 1.421.8 manat in the first half six months, or 3.7 times more than the average salary in the country (384.5 manat). The salary averaged 355.5 manat in the non-oil sector, or 92.5 percent of the average salary, in the public sector - 323.9 manat (84.2 percent). The average salary was equal to 483.2 manat (125.6 percent in the private sector.

Labor market

As of August 1, about 37,800 people were officially registered as unemployed in Azerbaijan, of which 42.4 percent - women. Two unemployed claim for one vacancy in Azerbaijan. During the year, the number of unemployed in the country decreased by 5.7 percent.

As of Aug. 1, able-bodied citizens in Azerbaijan made up 4.635.1 mln people, the Azerbaijani State Statistics Committee reported.

There are 1.395.9 mln hired people in the first six months. About 849,400 people work in the public sector and 523,900 - in private.

The number of people working in the oil sector amounted to 36,900 people, in the non-oil sector - 1.336.4 million people. Around 1.332.9 million people among hired employees work in non-agricultural sphere.

Of the hired employees involved in the production spheres: 21.8 percent in industry, 5.9 percent in manufacturing, 6.5 percent in construction, 2.9 percent in agriculture, forestry and fishing, 24.3 percent in education, 2.6 percent - in the mining industry, 2.2 percent - in the production and distribution of electricity, gas and steam, 1.7 percent - in water supply, waste recycling, 19.6 percent - trade, repair of vehicles, 9.6 percent - health and social services, 4.9 percent - transportation and warehousing, 3.9 percent - recreation, entertainment and arts, 3.2 percent - scientific and technical activities, 1.9 percent - communication and information, 1.7 percent - financial and insurance activities, 0.8 percent - real estate transactions, leasing, 4.2 percent - in state management and defense, social security and 1.8 percent - administrative services, 1.3 percent - tourist accommodation, and 1 percent - other areas.

Distribution of unemployed individuals and those who receive unemployment benefit in towns and regions as of Aug. 1, 2012 (people)

Individuals with unemployed status

Individuals who receive unemployment benefits

Baku

13108

808

Absheron region

1448

321

Ganja-Gazakh

2494

166

Shaki-Zarqatala

1353

135

Lankaran

1179

82

Guba-Khachmaz

1167

85

Aran

10134

492

Nagorno-Karabakh

4070

138

Kalbajar-Lachin

1570

57

Shirvan

1240

67

Nackchivan

26

-

Source: State Statistics Committee

As of Aug. 1, 2012 the largest number of unemployed was registered in Baku (13,108 people, of which 808 people received unemployment benefits) and eighteen regions of Aran economic region (10,134 and 492 people respectively).

The unemployment benefit in Azerbaijan hits 202.4 manat or by 14.9 percent more compared to the same period of 2011.

New jobs

According to the State Statistics Committee, about 58,200 new jobs were created in the country in the first six months of 2012, of which 45,200 are permanent. Around 299,000 new jobs were created in the period from January 2009 to January 2012 within the second state program aimed at socio-economic development of the regions, including 224,800 permanent jobs. Around 10.0 percent among permanent jobs fall to new established enterprises, 22.5 percent - the existing organizations, 0.1 percent - restored organizations and 67.4 percent - organizations belonging to physical entities.

Around 4.2 percent of permanent jobs were created in construction sector, 2.8 percent - wholesale and retail trade, repair of vehicles, 2.4 percent - processing industry, 1.4 percent - social, health services and others.

Around 70.1 percent of the created jobs fall to the regions.

Provision of pensions

According to the Azerbaijani Ministry of Labor and Social Protection, as of on August 1, the targeted social assistance hits 110.26 manat ($ 140.4), per person - 24.78 manat in Azerbaijan per one family.

As of August 1, the targeted social assistance has been issued to 141,378 families of 629,129 people. The targeted social assistance was issued to 79,559 families in 2012. It was issued for the first time for 39,573 families. Around 110,062 families receive assistance from the state for the first time. Around 306,308 people from the families, receiving the targeted social assistance, are under 18, while 9,669 - under one year old.

Around 58,627 families of the total number of beneficiaries are families with three or more children, 666 families with disabled veterans, 18,059 - with people disabled due to other causes, 12, 552 - with the internally displaced people, 39 families of martyrs.

Around 99.7 percent of families get the targeted social assistance via plastic cards.

Azerbaijan has passed to the targeted social assistance since 2006. Its amount is determined based on the difference between the criterion of need, which is 84 manat from 2012 [in 2011 - 75 manat] and the amount of income per family member.

Around 263 families from 13 regions of the country have been involved in self-support project today. The Ministry plans to use the project in the whole country.

The self-support project is an alternative mechanism of targeted social assistance for the families to develop their business.

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