Labor market indicators
Employment and unemployment represent the most relevant measures not only of the way the labor market functions but also of the overall economic, institutional and legal policy framework. When the labor market is subject to imbalances and disequilibria, it generates voluntary and involuntary unemployment.
Table 5. Main social-economic indicators of the labour market36
|
2005
|
2010
|
2014
|
2015
|
2016
|
2017
|
2018
|
Number of economically active population - total, thsd. persons
|
4380,1
|
4587,4
|
4840,7
|
4915,3
|
5012,7
|
5073,8
|
5133,1
|
men
|
2268,8
|
2329,7
|
2475,7
|
2510,8
|
2573,2
|
2609,0
|
2637,4
|
women
|
2111,3
|
2257,7
|
2365,0
|
2404,5
|
2439,5
|
2464,8
|
2495,7
|
Number of employed persons - total, thsd. persons
|
4062,3
|
4329,1
|
4602,9
|
4671,6
|
4759,9
|
4822,1
|
4879,3
|
men
|
2104,7
|
2227,4
|
2376,1
|
2408,2
|
2465,7
|
2502,8
|
2529,4
|
women
|
1957,6
|
2101,7
|
2226,8
|
2263,4
|
2294,2
|
2319,3
|
2349,9
|
including by property forms:
|
|
|
|
|
|
|
|
state
|
1229,8
|
1142,7
|
1178,2
|
1176,1
|
1171,4
|
1158,4
|
1154,9
|
non-state
|
2832,5
|
3186,4
|
3424,7
|
3495,5
|
3588,5
|
3663,7
|
3724,4
|
Number of unemployed persons2) - total, thsd. persons
|
317,8
|
258,3
|
237,8
|
243,7
|
252,8
|
251,7
|
253,8
|
men
|
164,1
|
102,3
|
99,6
|
102,6
|
107,5
|
106,2
|
108,0
|
women
|
153,7
|
156,0
|
138,2
|
141,1
|
145,3
|
145,5
|
145,8
|
Persons received official unemployment status in State Employment Service, total, person
|
56343
|
38966
|
28690
|
28877
|
32972
|
38481
|
20088
|
men
|
27265
|
21979
|
17383
|
17728
|
20418
|
24496
|
12608
|
women
|
29078
|
16987
|
11307
|
11149
|
12554
|
13985
|
7480
|
of which:
|
|
receiving benefits as unemployed, total, person
|
2087
|
87
|
1613
|
1543
|
1857
|
6974
|
11173)
|
men
|
1316
|
70
|
1122
|
1087
|
1238
|
4748
|
668
|
women
|
771
|
17
|
491
|
456
|
619
|
2226
|
449
|
Table 2.6 shows employment in the country and one can see that the size of the economically active population and number of employed persons has been growing year-by-year. The number of unemployed persons is not so critical, and it is high among women in general. In this context, it should be noted that the majority of jobless people are not registered at the State Employment Service of the country and if the discouraged persons were included then the total unemployment rate could be higher. In fact, inactivity and unemployment rates are higher in urban areas than in rural, and the main reason for this is internal migration from rural areas to big cities (mainly the capital city, Baku) to find high-paying jobs, as well as involvement of rural people in subsistence farming. However, the majority of such people usually engage in informal employment.
Table 6.Number of employed population by economic activities thsd. persons
Economic activity
|
2005
|
2010
|
2014
|
2015
|
2016
|
2017
|
2018
|
On economy, total
|
4062,3
|
4329,1
|
4602,9
|
4671,6
|
4759,9
|
4822,1
|
4879,3
|
Agriculture, forestry and fishing
|
1573,6
|
1655,0
|
1691,7
|
1698,4
|
1729,6
|
1752,9
|
1769,3
|
Mining
|
42,3
|
41,5
|
41,5
|
39,1
|
38,1
|
37,9
|
40,3
|
Manufacturing
|
198,4
|
208,9
|
227,1
|
229,8
|
242,2
|
249,1
|
254,8
|
Electricity, gas and steam production, distribution and supply
|
27,9
|
30,6
|
29,8
|
27,1
|
27,3
|
27,5
|
27,5
|
Water supply; waste treatment and disposal
|
23,9
|
25,2
|
25,8
|
25,4
|
30,6
|
30,8
|
41,1
|
Construction
|
211,9
|
287,5
|
334,1
|
336,4
|
343,8
|
347,9
|
354,5
|
Trade; repair of transport means
|
634,8
|
626,7
|
681,9
|
693,7
|
699,6
|
705,9
|
706,1
|
Transportation and storage
|
174,6
|
179,1
|
185,1
|
197,1
|
198,4
|
201,0
|
203,2
|
Accommodation and food service activities
|
25,1
|
46,9
|
55,7
|
61,5
|
68,4
|
73,5
|
78,2
|
Information and communication
|
32,3
|
55,8
|
59,2
|
60,3
|
61,2
|
61,7
|
62,8
|
Financial and insurance activities
|
18,1
|
24,4
|
32,8
|
33,0
|
27,1
|
26,9
|
27,4
|
Real estate activities
|
82,1
|
69,6
|
85,6
|
89,7
|
88,0
|
88,8
|
90,8
|
Professional, scientific and technical activities
|
43,4
|
45,6
|
58,5
|
59,6
|
68,4
|
73,5
|
74,3
|
Administrative and support service activities
|
38,7
|
46,5
|
53,7
|
55,2
|
57,1
|
58,0
|
59,5
|
Public administration and defense; social security
|
256,6
|
279,1
|
285,2
|
287,3
|
285,4
|
284,2
|
281,5
|
Education
|
345,1
|
349,8
|
367,3
|
373,5
|
374,8
|
377,8
|
380,2
|
Human health and social work activities
|
188,8
|
170,3
|
176,5
|
180,8
|
185,6
|
189,0
|
190,0
|
Art, entertainment and recreation
|
52,4
|
59,6
|
67,8
|
69,6
|
77,4
|
80,6
|
81,5
|
Other service activities
|
92,3
|
127,0
|
143,6
|
154,1
|
156,9
|
155,1
|
156,3
|
Source; Statistical Yearbook of Azerbaijan 2019
The employed population of the country was 4759.9 thousand persons, and the employment level around 95 percent. From Table 2 above, one can see that around 36.3 percent of the employed population were engaged in agriculture, forestry and fishing. Compared to 2010, we can see noticeable increase in the number of employed people. In cities, 51.48 percent of employed people were men and the rest, 48.52 percent were women. However, in rural areas, 51.4% percent of the employed population was men and 48.6 percent were women37.
From a comparison with the numbers for the early 2000s with 2018, it is clear that the proportion of men in cities increased but the proportion of women decreased, while the reverse of this change happened in rural areas. This is a result of the internal migration of men from rural areas to cities. Most of those people lived and worked in rural areas but they moved to work in cities because of higher salaries. A review of the distribution of the employed population by economic activities and sex shows that there is remarkable dominance of male employees in sectors such as mining, manufacturing, electricity, gas and steam production, distribution and supply, water supply, waste treatment and disposal, construction, transportation and storage, public administration and defense and security. Women employees prevail in sectors such as information and communication, education, human health and social work activities, administrative and support service activities and art, entertainment and recreation. Men take most of the civil service positions.
According to the law “On Employment” the following categories are chosen for self-employment program “AzSEP”: persons receiving targeted state social assistance, persons with disabilities and children with disabilities under 18 years old, those registered as unemployed for more than one year, persons who are less than two years of retirement age, unemployed persons released from places of detention and forced migrants. Unemployed persons who is getting unemployment insurance benefits do not participate in self-employment program.
Poverty
Poverty level and existing social protection system.
Since 2001, the share of the population living below the national poverty line (49.0%) decreased 8.6 times standing at 5.1% in 2018, and extreme poverty in the country was eliminated in 2007 (extreme poverty, which was around 10.0% in 2001-2003, fell to 0.5% in 2006 and to less than 0.1% in 2007). During this period, the decline in the poverty level in the country took place against the background of raising the national poverty threshold (42,6 AZN in 2001, 175.2 AZN in 2015) on a regular basis, which attests to the greater importance of the achieved result.
In 2018, poverty line was 175.2 AZN and poverty level was 5.1% (increased by 1 percentage point compared to the previous year). (Table 2.7)
Table 7. Poverty line and poverty level
|
2005
|
2006
|
2007
|
2008
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
Poverty line, manat
|
42,6
|
58,0
|
64,0
|
78,6
|
89,5
|
98,7
|
107,2
|
119,3
|
125,2
|
129,6
|
135,6
|
148,5
|
165,7
|
173
|
180
|
Poverty level,
per cent
|
29,3
|
20,8
|
15,8
|
13,2
|
10,9
|
9,1
|
7,6
|
6,0
|
5,3
|
5,0
|
4,9
|
5,9
|
5,4
|
5,1
|
4.8
|
Sourse: Statistical Yearbook of Azerbaijan Rebublic 2019
Despite recent declines in poverty, many low-income households can be classified as vulnerable. Moreover, remittances from family members working abroad and self-employment activities are important income-raising strategies for many low-income households. High vulnerability is also a legacy of the conflict with Armenia in the early 1990s. Refugees and internally displaced persons – first generation or their children - comprise 10% of the population.
Crises such as serious illnesses, the unexpected death of a family member, the loss of a job or an accident leading to disability puts significant financial pressure on low-income households. This is due to the relatively high costs associated with these risks and a limited range of proper coping mechanisms. While there is a strong informal borrowing culture, borrowing mostly without interest from family and friends is not enough to cope with more severe risks. In addition, Azerbaijanis prepare for risks and have very reactive attitudes to managing risks. For example, less than 1% of low-income households regularly save. The current risk-management strategies are very risky in terms of over indebtedness.
An inclusive and targeted social protection system has been formed in the country that combines all elements characteristic of social protection. Over the past period, serious reforms have been carried out in this area and a number of steps have been taken to bring the social protection system in line with modern requirements. In accordance with the Ministry of Labor and Social Protection of Population the Republic of Azerbaijan, 28.3% of the country's population (about 2.8 million people) receive various social payments (because of the birth of a child, social payment for women with more than 5 children, allowance payment for children who lost their parents, payment for persons with disabilities and others) from the state throughout the social protection system of Azerbaijan. Among these social payments, the major ones according to their shares are occupational pensions, targeted state social assistance, social benefits and pensions assigned by the President of the Republic of Azerbaijan.
Human Development Index (HDI)
The human development index (HDI) of Azerbaijan is the index used by the United Nations to measure the progress of a country in multiple human development aspects. The HDI is a summary measure for assessing long-term progress in three basic dimensions: a long and healthy life, access to knowledge and a decent standard of living. A long and healthy life is measured by life expectancy. Knowledge level is measured by mean years of education among the adult population which is the average number of years of education received in a life-time by people aged 25 years and older; and access to learning and knowledge by expected years of schooling for children of school-entry age, which is the total number of years of schooling a child of school-entry age can expect to receive if prevailing patterns of age-specific enrolment rates stay the same throughout the child's life. Standard of living is measured by Gross National Income (GNI) per capita expressed in constant 2011 international dollars converted using purchasing power parity (PPP) conversion rates.
In 2018 Azerbaijan’s score in the HDI was 0.757 points, leaving it in 80th place in the table of 189 countries published.
Table 2.8. reviews Azerbaijan’s progress in each of the HDI indicators. Between 1990 and 2018, Azerbaijan’s life expectancy at birth increased by 7.3 years, mean years of schooling increased by 0.5 years and expected years of schooling increased by 2.0 years. Azerbaijan’s GNI per capita increased by about 79.2 percent between 1990 and 201738.
Table 8. Azerbaijan’s HDI trends
|
Life expectancy at birth
|
Expected years of schooling
|
Mean years of schooling
|
GNI per capita (2011 PPP$)
|
HDI value
|
HDI range
|
1995
|
65.3
|
10.0
|
10.2
|
3,387
|
0.612
|
151º
|
2000
|
66.8
|
10.4
|
10.6
|
4,314
|
0.640
|
166º
|
2005
|
68.8
|
10.7
|
10.7
|
6,940
|
0.679
|
169º
|
2010
|
71.0
|
11.7
|
10.7
|
15,246
|
0.740
|
148º
|
2015
|
71.9
|
12.7
|
10.7
|
16,334
|
0.758
|
148º
|
2016
|
72.0
|
12.7
|
10.7
|
15,751
|
0.757
|
147º
|
2017
|
72.1
|
12.7
|
10.7
|
15,600
|
0.757
|
80º
|
Gender Inequality Index (GII)
The 2010 Human Development Report introduced the GII, which reflects gender-based inequalities in three dimensions - reproductive health, empowerment and economic activity. Reproductive health is measured by maternal mortality and adolescent birth rates; empowerment is measured by the share of parliamentary seats held by women and attainment in secondary and higher education by each gender; and economic activity is measured by the labour market participation rate for women and men. The GII can be interpreted as the loss in human development due to inequality between female and male achievements in the three GII dimensions.
Azerbaijan has a GII value of 0.318, ranking it 71 out of 160 countries in the 2017 index39. In Azerbaijan, 16.8 percent of parliamentary seats are held by women, and 93.8 percent of adult women have reached at least a secondary level of education compared to 97.5 percent of their male counterparts. For every 100,000 live births, 25 women die from pregnancy related causes; and the adolescent birth rate is 53.5 births per 1,000 women of ages 15-19. Female participation in the labour market is 62.9 percent compared to 69.5 for men40.
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