Social sector in Azerbaijan (I Quarter 2013)

Analysis Materials 13 May 2013 15:28 (UTC +04:00)

Azerbaijan is operating to achieve sustainable growth in wages, social benefits and income of the population.

Population's income

According to the Azerbaijani State Statistics Committee, in Jan.-March 2013, the nominal income of the population totaled 7.736.7 billion manat which is 5.9 percent more compared to Jan.-March 2012.

Thus, during this period, the nominal income of the population per capita increased by 4.5 percent and hit 836.4 manat.

As of April 1, 2013, the depositors of the Bank of Azerbaijan Republic of the Savings Bank of the former Soviet Union got the individual lump-sum payments totaling 589.9 million manat, including 35.5 million manat for three months of the year. This fact contributed to the increase in the population's income.

Major indices, characterizing income of the population

Indices Jan.-March 2013 Compared to Jan.-March 2012, percent
nominal income of population, in mln manat 7736,7 105,9
Per capita, manat 836,4 104,5
Income of population, in mln manat 7006,9 105,5
Per capita, manat 757,5 104,1

Source: State Statistics Committee

The population's income after paying all required fees and membership fees made up 7.006.9 billion manat, which is 5.5 percent more than in January-March 2012. Real income per capita increased by 4.1 percent to 757.5 manat.

During this period, Azerbaijani citizens spent their income in following way: 70.8 percent on purchase of goods and services, 9.4 percent - payment of taxes, duties and fees, 1.9 percent - payment of credit, 17.9 percent - capital accumulation.

Thus, during this period the expenditure in Jan.-March 2013 comprised 6.351.7 bln manat or 1.385 billion manat less than the income of population, but 16.0 percent more than the expenses in the same period of 2012. (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.


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 hired employees' average monthly salary in Azerbaijan in February 2013 comprised 397.1 manat or 7.8 percent more than the same period of 2012.

As of Feb. 2013, the average salary of temporary staff was 427.1 manat, while employees involved upon civil contracts - 257.5 manat.

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

Labor market

As of April 1, 2013, the economically active population totaled 4.701 million people compared to 4.688 million people as of early 2013.

The number of people working in the oil sector amounted to 37,000 people, in the non-oil sector - 1.433 million people. Around 1.428 million people among hired employees work in non-agricultural sphere.

Around 21.8 percent fall to the hired employees involved in the production spheres: 6.7 percent in construction, 6.1 percent in manufacturing industry, 2.9 percent in agriculture, forestry and fishing, 2.5 percent - in the mining industry, 2.2 percent - in the production and distribution of electricity, gas and steam, 1.4 percent - in water supply, waste recycling, 23.2 percent in education, 19.0 percent - trade, repair of vehicles, 8.8 percent - health and social services, 4.9 percent - transportation and warehousing, 3.9 percent - recreation, entertainment and arts, 3.6 percent - scientific and technical activities, 1.8 percent - communication and information, 1.7 percent - financial and insurance activities, 0.8 percent - real estate transactions, rent, 1.6 percent - administrative and support services, 1.2 percent - tourist accommodation and food and 1.0 percent - other areas.

According to the Azerbaijani State Statistics Committee, as of April 1, 2013, around 37,639 people were officially registered as unemployed in Azerbaijan compared to 37,637 people the previous month and 36,791 people as of early 2013. During the year, the number of unemployed in the country increased by 2 percent and reduced by 120 people since early 2013.

The Azerbaijani Ministry of Labor and Social Protection continues taking measures to provide unemployed and job-seekers with jobs. During the year, the fairs are planned to be held in 57 cities and regions of the country. A job fair was held in Ismayilli region in March. Some 415 vacancies were represented there.

The State Labour Inspection Service under the Azerbaijani Ministry of Labour and Social Protection ensured the conclusion of employment contracts by 7 times more in January-February compared to the same period of last year, i.e. with 3,538 people.

The service controlled the compliance of labor legislation with 2,231 enterprises and organizations for the first quarter of this year, including 1,895 private sector organizations. It considered 841 applications and 289 requests from citizens, enterprises and organizations.

The facts of violating the labor legislation were revealed in 4,075 cases. The fines worth 78,770 manat were imposed for administrative offenses.

During this period, the overdue payments, including 227,652 manat of wages, 11,992 manat of payments for damage, 9,946 manat of social benefits and compensation, restoring 11 people at their positions, were made.

Distribution of unemployed individuals and those who receive unemployment benefit in towns and regions as of April 1, 2013 (people)

Individuals with unemployed status

Individuals who receive unemployment benefits




Absheron region






























Source: State Statistics Committee

As of April 1, 2013, the largest number of unemployed was registered in Baku's 12 administrative districts (13,379 people, of which 830 people received unemployment benefits) and eighteen regions of Aran economic region (10,098 and 418 people respectively).

The average amount of unemployment benefit is 249.8 manat compared to 249.6 manat as of March 1, 252.3 manat as of Feb. 1 and 224.1 manat as of Jan. 1. Some 2,295 people received it compared to 2,164 people in Feb., 1,603 people in Jan. and 934 unemployed by early 2013.

Social security

The process of rendering the social services has been launched in Azerbaijan since March. According to the Ministry of Labour and Social Welfare, at present, some 13,650 people, including 11 million women, get social services at home. Some 11,600 people, receiving social services, are people older 70.

A social employee falls to 12 people in the cities, settlements and district centers. A social employee serves 8 people in need in villages. A social employee at least twice a week renders cleaning services in the apartments and purchases food and household products.

Currently, 123,000 families receive targeted social assistance. Each family receives the state grant to the amount of 117 manat.