Social sector in Azerbaijan (January-September 2016)

The salaries of employees of structural divisions of the Azerbaijani Ministry of Communications and High Technologies increased in September 2016. The salaries of employees rendering public services increased up to 10 percent.

The salaries of employees in Aztelekom’s main department increased by five percent and by 10 percent in Aztelekom’s other departments.

The salaries of employees in Azerekspresspost post office under Azerpost production association (except postal operator’s office) increased by five percent and by 10 percent in other offices of the postal operator.

The salaries of employees of Khatai, Yasamal, Nizami, Sabunchu, Garadagh telecommunications nodes of the Baku Telephone Communications production association increased by five percent and the salaries of employees of Khazar and Baku telecommunications nodes increased by 10 percent.

The salaries of employees of Teleradio production union increased by 10 percent and the salaries of employees of Azermarka LLC by 5 percent.

Currently, the average salary in the communication sector is 746.8 manat.

Population’s income

According to the Azerbaijani State Statistics Committee, the nominal income of the population totaled 32.76 billion manat in January-September 2016, which is 8.7 percent more compared to January-September 2015.

Thus, during this period, the nominal income of the population per capita increased by 7.4 percent and reached 3403,6 manat (378 manat for the month).

Major indices, characterizing income of the population

Indices

Jan.-Sept. 2016

Compared to Jan.-Sept. 2015, %

nominal income of population, in mln manat

32762,5

108,7

Per capita, manat

3403,6

107,4

Income of population, in mln manat

29735,4

108,9

Per capita, manat

3089,1

107,6

Source: State Statistics Committee

The population’s income after paying all required fees and membership fees made up 29.73 billion manat, which is 8.9 percent more than in January-September 2015. Real income per capita increased by 7.6 percent to 3089,1 manat.

During the reporting period, the country’s population spent 78.6 percent of personal income on consumer purposes, 9.2 percent - tax, insurance and membership contributions, 2.6 percent - payment of loan debts, while 9.6 percent remained in the form of savings.

The population’s expenditure amounted to 29.617 billion manat in January-September 2016 or 3.145 billion manat less than the income of the population but by 11.8 percent more than expenditure of the population for January-September 2015 (according to the Azerbaijani State Statistics Committee, Trend’s calculations).

The gap in income and expenditure of the population in favor of income testifies to the growth of material well-being of Azerbaijani citizens. The differentiation in the 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 Azerbaijani State Statistics Committee, the average monthly salary in Azerbaijan in January-August 2016 comprised 488.7 manat or by 6.2 manat more than in January-August 2015 (460.1 manat) and 0.6 manat less than the previous month (489.3 manat).

Remuneration in the oil sector reached 2644,1 manat for the month, the non-oil sector – 437.5 manat, the public sector – 369.5 manat, the private sector – 659.0 manat as of September 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 96,500 people were involved in the Azerbaijani construction sector in January-August 2016. The average monthly salary in the construction sector amounted to 805.4 manat, which is 20.7 percent more than in the same period of 2015.

The average monthly salary in the state sector amounted to 519.3 manat (a 4.6 percent growth for the year), private - 916.4 manat (a 25.7 percent growth).

The salary increased by 13.6 percent up to an average of 611.8 manat in the construction of buildings, specialized construction - by 26.5 percent up to 1498.6 manat in January-August 2016 compared to the same period of 2015.

Labor market

As of October 1, 2016, some 33,800 people were officially registered as unemployed in Azerbaijan, including 37.9 percent women, the Azerbaijani State Statistics Committee’s report said.

According to the report, the number of unemployed increased by 16.6 percent in the country compared to the same period of 2015.

In particular, some 2,700 people appealed to the employment centers after the banks and currency exchange offices closed in the country. The unemployment benefits were assigned for those people.

The average monthly unemployment benefit in Azerbaijan is 247.3 manat.

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

Economic regions:

Individuals with unemployed status

Individuals receiving unemployment benefits

Baku

15 089

2 517

Absheron region

1 698

1 002

Ganja-Gazakh

2 188

502

Sheki-Zaqatala

920

271

Lankaran

977

185

Guba-Khachmaz

1 250

283

Aran

7 911

856

Upper-Karabakh

1 653

302

Kalbajar-Lachin

1 317

155

Mountain Shirvan

800

121

Nakhchivan

-

-

As of October 1, 2016, the economically active population reached 4.98 million people, of which 4.73 million people were engaged in labour activity.

Thus, as of September 1, 2016, the number of hired employees exceeded 1.52 million people, including 887,800 people worked in the state sector, and 632,400 people - in private sector.

Some 34,600 people work in the oil sector, while 1.49 million people in the non-oil sector.

Around 22.8 percent fall to the hired employees involved in the production spheres: 6.8 percent in construction, 6.9 percent in manufacturing industry, 3.1 percent in agriculture, forestry and fishing, 2.2 percent - in the mining industry, 2 percent - water supply, waste recycling, 1.8 percent - in the production and distribution of electricity, gas and steam, 22 percent in education, 18.8 percent - trade, repair of vehicles, 8.8 percent - medical and social services, 7 percent in state governance and defense, social maintenance, 4.6 percent - transportation and warehousing, 3.7 percent - recreation, entertainment and arts, 3.6 percent – professional, scientific and technical activities, 1.6 percent - communication and information, 1.7 percent - financial and insurance activities, 1.2 percent - real estate transactions, 1.6 percent - administrative and additional services, 1.5 percent – tourist accommodation and catering and 1.1 percent - other areas.

Social security

Some 3.32 million employees were socially insured in Azerbaijan. According to the Azerbaijani Labor and Social Protection Ministry, some 136,524 more people were registered in the individual registration system of the State Social Protection Fund in January-September.

Some 670,013 people registered in the system are those up to 30 years old, 843,153 people aged 30-40, 666,561 people aged 40-50, 700,113 people aged 50-60, the rest insured over 60 years old.

The number of foreigners registered in the individual registration system in the Azerbaijani State Social Protection Fund increased by 5,248 people in January-September.

Some 274 more foreign employees were registered in September 2016.

Thus, the total number of foreign employees reached 33,110 people, including 88.3 percent - men. The labor rights of citizens of 120 countries were registered in the individual registration system, but most of them are citizens of Turkey, Georgia and Russia.

Provision of pensions

The average monthly pension increased by seven percent in Azerbaijan. As of October 1, 2016, some 1.312 million pensioners were registered in Azerbaijan. Thus, the average pension in Azerbaijan has increased by seven percent up to 190.1 manat since early 2016.

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