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Social sector in Azerbaijan (January-October 2012)

Analysis Materials 15 December 2012 15:21 (UTC +04:00)

The Azerbaijani Parliament has approved the amendments to the law on "Labor pensions". According to them, pensions of Great Patriotic War veterans will be increased. The pensions of veterans will be increased by 90 percent, rather than 50 percent (85 manat) of the basic part of the pension.

According to other changes in the law, the benefits will be applied for employees of the Emergency Situations Ministry when they retire. That is, employees of the Emergency Situations Ministry, who served for 25 years, will be eligible for retirement. Moreover, if an employee of the Emergency Situations Ministry dies, his family will receive the retirement pension. According to the law, if the employee of the Emergency Situations Ministry retires after having worked for 5-10 years, the employee will receive 45 percent, in case of more than 10 years - 55 percent of salary.

Population's income

According to the Azerbaijani State Statistics Committee, in January-October 2012, the nominal income of the population totaled 27.128.5 billion manat which is 13.7 percent more as compared to the same period of 2011.

Thus, during this period, the nominal income of the population per capita increased by 12.2 percent and hit 2.959.4 manat. The average monthly income per capita was 295.9 manat.

The growth rate of income per capita exceeded the growth in consumer prices by 10.9 percent.

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

Major indices, characterizing income of the population

Indices

Actual figures for Jan.-Oct. 2012

Compared to Jan.-Oct. 2011, percent

nominal income of population, in mln manat

27128,5

113,7

Per capita, manat

2959,4

112,2

Income of population, in mln manat

24847,4

114,0

Per capita, manat

2710,6

112,5

Source: State Statistics Committee

In Jan.-Oct. 2012, Azerbaijani citizens spent their income in following way: 63.4 percent on purchase of goods and services, 8.4 percent - payment of taxes, duties and fees, 1.7 percent - payment of credit, 26.5 percent - capital accumulation.

Real income after the payment of taxes and membership fees made up 24.8 bln manat in Jan.-Oct. or 14.0 percent more than the same period of 2011. Real income per capita made up 2.710.6 manat with a growth of 12.5 percent.

Thus, during this period the expenditure in Jan.-Oct. 2012 comprised 19.939.5 bln manat or 7.189 billion manat less than the income of population, but 10.3 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-September 2012 comprised 388.2 manat or 8.6 percent more than the same period of 2011.

The average salary of temporary staff was 212.5 manat, while employees involved upon civil contracts - 366.5 manat. In September, the average wage exceeded the average monthly income per capita per month by 32.1 percent (293.85 manat)

The highest salary was observed in the mining industry, financial, oil, information and communication, scientific and technical activity, as well as the construction sectors.

Labor market

The long and dynamic development of the non-oil sector resolved the problem with unemployment.

In October, the number of registered unemployed reduced by 223 people, while by 1,116 people since early 2012. According to the State Statistics Committee, as of November 1, 2012, around 37,214 people in the country were officially registered as unemployed, 42.2 percent of whom are women. Two unemployed claimed for one vacancy in Azerbaijan.

As of Nov. 1, able-bodied citizens in Azerbaijan made up 4.665 mln people, the Azerbaijani State Statistics Committee reported.

There are 1.424 mln hired people in Jan.-Sept. About 848,400 people work in the public sector and 538,100 - in private.

The number of people working in the oil sector amounted to 37,100 people, in the non-oil sector - 1.339 million people. Around 1.345 million people among hired employees work in non-agricultural sphere.

Around 22.3 percent fall to the hired employees involved in the production spheres: 6.9 percent in construction, 6.0 percent in manufacturing industry, 3 percent in agriculture, forestry and fishing, 2.6 percent - in the mining industry, 2.1 percent - in the production and distribution of electricity, gas and steam, 1.7 percent - in water supply, waste recycling, 24.0 percent in education, 19.6 percent - trade, repair of vehicles, 9.5 percent - health and social services, 4.9 percent - transportation and warehousing, 3.8 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 and 1 percent - other areas.

The Azerbaijani Ministry of Labor and Social Protection continues taking the measures to increase employment level. According to the ministry, a job fair was conducted in Surakhani district of Baku in October within these measures. At the fair, 14 companies proposed 178 vacancies, 15 were sent to appropriate jobs, and 12 people - for professional courses. Around 415 companies proposed 5,149 vacancies at Baku's labor fairs in January-September. Around 2,146 people were provided with jobs, 227 people were sent to professional courses and 1,044 people were involved in paid public work.

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

Individuals with unemployed status

Individuals who receive unemployment benefits

Baku

13063

504

Absheron region

1392

151

Ganja-Gazakh

2507

118

Shaki-Zarqatala

1305

79

Lankaran

1154

52

Guba-Khachmaz

1148

42

Aran

10051

248

Nagorno-Karabakh

3951

72

Kalbajar-Lachin

1488

30

Shirvan

1155

44

Nackchivan

-

-

Source: State Statistics Committee

As of Nov. 1, 2012 the largest number of unemployed was registered in Baku (13,063 people, of which 504 people received unemployment benefits) and eighteen regions of Aran economic region (10,051 and 248 people respectively).

The average unemployment benefit in Azerbaijan hit 213.5 on Nov. 1 compared to 208.9 manat as of Oct. 1, and 202.8 manat as of Sept. 1.

Thus, the unemployment benefit in Azerbaijan increased by 2.2 percent in October compared to September.

Taking into account the consumer inflation per month (0.7 percent), the amount of real unemployment benefit increased by 1.5 percent.

Around 1,340 people received this benefit during this period.

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