Social sector in Azerbaijan (January 2016)

Population's income

According to the Azerbaijani State Statistics Committee, the nominal income of the population totaled 3.081 billion manat in January 2016, which is 12.1 percent more compared to January 2015.

Thus, during this period, the nominal income of the population per capita increased by 0.8 percent and hit 321.2 manat.

Major indices, characterizing income of the population

Indices

January 2016

Compared to January 2015, %

nominal income of population, in mln manat

3080,6

112,1

Per capita, manat

321,2

110,8

Income of population, in mln manat

37948,3

105,6

Per capita, manat

3982,3

104,3

Source: State Statistics Committee

The population's income after paying all required fees and membership fees made up 2.781 billion manat, which is 13.3 percent more than in January 2015. Real income per capita increased by 11.9 percent to 290 manat.

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 Azerbaijani State Statistics Committee, the average monthly salary in Azerbaijan in 2015 comprised 466.4 manat compared to 444.3 manat in 2014.

Remuneration in the oil sector reached 2187,7 manat per month, the non-oil sector - 424.7 manat, the public sector - 359 manat, the private sector - 616.8 manat as of January 1, 2016.

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

Around 97,600 people were involved in the Azerbaijani construction sector as of 2015. The average monthly salary in the construction sector amounted to 686.4 manat, which is 9.5 percent more than in the same period of 2014.

Labor market

As of February 1, 2016, some 29,800 people were officially registered as unemployed in Azerbaijan, including 38.3 percent women, the Azerbaijani State Statistics Committee's report said. The number of unemployed in the country increased by 3.1 percent compared to the same period of 2015.

The average monthly unemployment benefit in Azerbaijan is 281 manat.

Distribution of unemployed individuals and those who receive unemployment benefit in towns and regions as of February 1, 2016 (people):

Region:

Individuals with unemployed status

Individuals receiving unemployment benefits

Baku

12 513

1 012

Absheron region

1 596

230

Ganja-Gazakh

1 868

188

Sheki-Zaqatala

825

102

Lankaran

872

70

Guba-Khachmaz

1 039

115

Aran

7 412

425

Upper-Karabakh

1 573

66

Kalbajar-Lachin

1 344

42

Mountain Shirvan

805

49

Nakhchivan

-

-

As of February 1, 2016, the economically active population totaled 4.9 million people, of which 4.67 million people were engaged in labour activity.

Thus, as of January 1, 2016, the number of hired employees hit 1.5 million people, including 877,400 people worked in the public sector, and 618,400 people - in private sector.

The number of people working in the oil sector amounted to 34,400 people, in the non-oil sector - 1.46 million people.

Around 21.3 percent fall to the hired employees involved in the production spheres: 6.2 percent in construction, 6.3 percent in manufacturing industry, 3 percent in agriculture, forestry and fishing, 2.3 percent - in the mining industry, 1.8 percent - in the production and distribution of electricity, gas and steam, 1.7 percent - in water supply, waste recycling, 22.6 percent in education, 19 percent - trade, repair of vehicles, 8.9 percent - medical and social services, 6.8 percent in state governance and defense, social maintenance, 4.9 percent - transportation and warehousing, 3.8 percent - recreation, entertainment and arts, 3.9 percent - professional, scientific and technical activities, 1.7 percent - communication and information, 2 percent - financial and insurance activities, 1 percent - real estate transactions, 1.6 percent - administrative and additional services, 1.4 percent - tourist accommodation and catering and 1.1 percent - other areas

The Azerbaijani government will take measures to prevent further job losses in 2016.

At present, the Ministry of Labor and Social Protection is monitoring the enterprises to analyze the number of the recently reduced jobs. The further measures depend on the monitoring results.

At present, several vocational training centers are operating under the Ministry of Labour in Azerbaijan. The concerned individuals can attend two-month, three-month and six-month courses. During this period, citizens continue receiving unemployment benefits and travel expenses. Such centers are operating in Ganja, Baku, Ismayilli and Goychay. Six more centers will be established in the future.

At present, Azerbaijan is also working out a bill "On compulsory insurance against unemployment". It will soon be submitted to the government.

The unemployment insurance will differ from the unemployment benefit, as it will allow people without work to getting insurance payments for a certain period of time.

Social Security

According to the Azerbaijani State Social Protection Fund, some 3,190,668 workers are socially insured in Azerbaijan. As of February 1, the number of people, registered in the individual registration system, has increased by 0.33 percent since early 2016. Some 10,514 more people were registered in the system in January. Thus, the total number of socially insured people increased to 3,190,668 people, namely, 59.22 percent men and 40.78 percent - women.

The labor rights of more than 28,000 foreigners have been registered in Azerbaijan. The number of foreigners registered in the individual registration system in the Azerbaijani State Social Protection Fund increased by 1.24 percent during a year. As of February 2016, some 347 more foreign workers were registered in the individual registration system.

Thus, the total number of foreign citizens registered in the system increased to 28,215 people, namely 87.83 percent men, 12.17 percent - women.

The labor rights of citizens of 118 world countries were registered in the individual registration system. Most of them are Turkish citizens (13,431 people), Georgia (3,037) and Russia (1,718).

As of February 1, 2016, some 105,500 people receive the targeted social assistance in Azerbaijan.

Up to 22,000 families from various regions of Azerbaijan have appealed to the social protection centers of the population for the targeted social assistance.

For example, some 1,183 families appealed for the targeted social assistance in Yardimli region. Yardimli region ranks first in the number of families receiving the targeted social assistance. This is connected with a lack of production facilities in this region. There are several such regions. The most important issue in this area is to increase transparency, which will be achieved through the introduction of the electronic targeted social assistance system.

The average amount of the targeted social assistance per family in January amounted to 152 manat, which is 9.4 percent more than in January 2015.

At present, some 5.1 percent accounts for the families, receiving targeted social assistance. This index will be increased to six percent due to additional 20 million manat to finance the targeted social assistance.

Some restrictions will be removed from the targeted social assistance after new rules enter into force.

For example, earlier, if more than a half of the average monthly family income was spent to pay off a loan debt in a bank, this family could not receive the targeted social assistance. At present, this restriction has been removed.

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