Social sector in Azerbaijan

Community income

September was marked this year as the month of social innovations. This month, the Head of State signed dozens of decrees and orders aimed at improving the material well-being and further strengthening the social protection of the population. In particular, the first in this list are the orders to increase the minimum monthly wage and the basic part of old age pension to 85 manat from Sept. 1, 2010.

According to the data provided by the State Statistics Committee of Azerbaijan, in January-September 2010, the nominal income of the population totaled AZN 18 billion which is 11.3% more as compared to January-September 2009.

During this period, the nominal per capita income made up AZN 2016.2, which exceeds the figure in 2009 by 10%. The rise in salaries in various spheres of economy and rise in social benefits also contributed to the growth in population income. This year for the first time the growth rate of population's incomes exceeded the last year's rate. Thus, in January-September 2009 the nominal income of the population compared to the same period of 2008 grew by 9.9 percent and per capita income - by 8.5 percent.

Major indices, characterizing money incomes of the population 

Source: State Statistics Committee

In January-September 2010, Azerbaijani citizens distributed their income in following way: 70.0% on purchase of goods and services, 9.2% - obligatory payment and fees, 19.1% - purchase of foreign currency and increase of savings.  

Real community incomes after the payment of taxes and membership fees made up 16320mln manat, or 12% more than last year. Real per capita community income made up AZN 1830.2 with rise of 10.7%.

Thus, during the reported period the money expenditure comprised AZN 14244.64mln or AZN 3734.56mln less than the incomes of population, but 14.4% more than the expenses in 2009. (Source: State Statistics Committee, calculations by Trend).

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. Thus, the amount of average monthly salary in Azerbaijan in January-September 2010 comprised AZN 319.1 or 6.6% more than the same period of 2009. There is a decline in growth rates of salary as well. Thus, compared with 2008, in January-September 2009 the salary rose by 13.3 percent.

However, it is possible to increase the growth rate for this indicator already in the next period, when the population of the country will be paid a premium. In September, the President of Azerbaijan signed a decree raising the salaries of employees of all state institutions by an average of 10 percent.

In spite of rise in salaries of various organizations, this indicator retains its differentiation across the country. The highest salary accounts for industry, finance, operations with real estate, rent and consumer services and construction sector.

Employees of enterprises and organizations received social benefits in amount of 9.6mln manat. Major beneficiaries were employees of the extractive industry, energy, gas and water producing and distributing enterprises, refining industry, transport and communications.

Labor market

As of Oct. 1, the economically active people in Azerbaijan made up 4,341,300 including 1,358,400 people as hired workers, the State Statistics Committee reported.

Of the hired employees involved in the production spheres: 20.1 percent in industry, 4.9 percent in construction, 2.9 percent in agriculture, forestry and fishing, 2.6 percent in extracting and 5.9 in processing, 25.6 percent in education, 19.9 percent in wholesale and retail trade, repair of automobiles, home wares and personal things, 10 percent in health and social services, 5.7 percent in transport and communications, 4 percent in the sphere of leisure, entertainment and culture, 3.9 percent in state government and defense, 1.8 percent in communal, social and personal services and 3.2 percent - in professional, scientific and technical activities.

As of Oct. 1, there were 39,400 unemployed people, including 43.5 percent - women in Azerbaijan.

The number of officially registered unemployed reduces every month due to employment fair conducted in the regions of the country, which helped hundreds of jobless people find employment. For example, according to the State Employment Service, in early September, 15 job fairs have been conducted in the regions of Azerbaijan.

Four unemployed claim for one vacancy in the country. The average unemployment benefit made up 144 manat.

Distribution of unemployed individual and those who receive unemployment benefit in regions as of October 1, 2010

Source: State Statistics Committee

Pension provision

Azerbaijani President Ilham Aliyev issued a decree establishing the minimal monthly wage at 85 manat from Sept. 1, 2010. The base labor pension is 85 manat. As of July 1, there were roughly 1.29 million pensioners in Azerbaijan. The basic pension of 1.116 million pensioners will increase by 10 manat.

Social provision

In January-September this year, the Ministry of Labour and Social Protection of Azerbaijan provided targeted social aid to 127,634 families, said the Ministry's spokesman Elnur Kalantarly.

On average, each family was paid 108.38 manat per month. The amount of targeted aid for each family member was 23.96 manat.

Of the total number of people receiving the aid, 41.1 percent were families with three or more children.