Social sector in Azerbaijan (January-June 2016)

Population’s income

According to the Azerbaijani State Statistics Committee, the nominal income of the population totaled 21.493,900 billion manat in January-June 2016, which is 8.4 percent more compared to January-June 2015.

Thus, during this period, the nominal income of the population per capita increased by 7.1 percent and reached 2.236,500 manat.

Major indices, characterizing income of the population

Source: State Statistics Committee

The population’s income after paying all required fees and membership fees made up 19.500,600 billion manat, which is 8.4 percent more than in January-June 2015. Real income per capita increased by 7.2 percent to 2.029,100 manat.

Azerbaijani citizens spent 78.2 percent of income on goods and services, 9.3 percent – to pay for taxes, duties, social and insurance fees, 2.7 percent - to pay off the loans and compulsory membership fees, 9.8 percent – to accumulate the capital.

The population’s expenditure amounted to 19.387,400 billion manat in January-June 2015 or 2.106,500 billion manat less than the income of the population but by 13.7 percent more than expenditure of the population for January-June 2015 (according to the Azerbaijani State Statistics Committee, Trend’s calculations)

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 January-June 2016 comprised 489.5 manat compared to 454.8 manat in January-June 2015.

Remuneration in the oil sector reached 2.823,300 manat per month, the non-oil sector – 433.5 manat, the public sector – 366.2 manat, the private sector – 670.3 manat as of June 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 90,400 people were involved in the Azerbaijani construction sector during this period. The average monthly salary in the construction sector amounted to 829.8 manat, which is 24.6 percent more than in the same period of 2015.

Labor market

As of July 1, 2016, some 34,500 people were officially registered as unemployed in Azerbaijan or by 18.6 percent more than as of July 1, 2015, including 37.8 percent women, the Azerbaijani State Statistics Committee’s report said.

The number of unemployed women in the country decreased for the year. As of July 1, 2015, the index reached 38.8 percent.

The average monthly unemployment benefit in Azerbaijan is 248.1 manat.

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

As of July 1, 2016, the economically active population exceeded 4.95 million people, of which 4.7 million people were engaged in labour activity.

Thus, as of June 1, 2016, the number of hired employees exceeded 1.5 million people, including 891,300 people worked in the public sector, and 610,400 people - in private sector.

The number of people working in the oil sector amounted to 34,400 people, in the non-oil sector – nearly 1.47 million people.

Around 21.7 percent fall to the hired employees involved in the production spheres: 6.5 percent in construction, 6.1 percent in manufacturing industry, 3.1 percent in agriculture, forestry and fishing, 2.2 percent - in the mining industry, 1.8 percent - in the production and distribution of electricity, gas and steam.

Of those working in services sphere, some 22.6 percent is concentrated in the areas of education, 18.9 percent - trade, repair of vehicles, 8.9 percent - provision of health and social services, 7.1 percent - areas of public administration and defense, social security, 4.7 percent - transport and warehousing sphere, 3.7 percent - areas of recreation, entertainment and arts, 3.6 percent - professional, scientific and technical activities, 1.8 percent - financial and insurance activity, 1, 7 percent - communication and information, 1.6 percent - provision of administrative and support services, 1.4 percent - tourist accommodation and catering, 1.2 percent - real estate transactions, 1.1 percent - other areas.

According to official data, 78,000 permanent jobs were opened and 26,000 jobs were closed for six months of the year.

In general, nearly 90,000 jobs were opened. But 78,000 of them are permanent jobs. This is a very positive fact, since there was some concern in early 2016 about the fact that some jobs close.

The number of foreigners registered in the individual registration system in the State Social Protection Fund (DSMF) of the Ministry of Labor and Social Protection of Azerbaijan has increased by another 3,205 people.

Thus, the total number of foreign citizens registered in individual registration system in Azerbaijan reached 31,068 people, 88 percent, or 27,340 people of which are men. At the same time, labor rights of citizens of 123 countries were registered in the system of individual registration, but the citizens of Turkey, Georgia and Russia form the majority.