De­mand in la­bor mar­ket to ex­ceed sup­ply by sev­eral times

Azer News - - Nation - By Aygul Sal­manova

Acon­fer­ence on “La­bor Mar­ket: Re­forms, Chal­lenges and Per­spec­tives” was held jointly by the Min­istry of La­bor and So­cial Pro­tec­tion of Pop­u­la­tion and the Cen­ter for Eco­nomic Re­forms and Com­mu­ni­ca­tions on De­cem­ber 20.

The event was at­tended by Min­is­ter for La­bor and So­cial Pro­tec­tion of Pop­u­la­tion Salim Mus­lu­mov, chair­man of the Com­mit­tee on So­cial Pol­icy of the Par­lia­ment Hadi Ra­jabli, the ex­ec­u­tive di­rec­tor of the Cen­ter for Anal­y­sis of Eco­nomic Re­forms and Com­mu­ni­ca­tion of Azer­bai­jan Vusal Gasimli, Pres­i­dent of Am Cham Nu­ran Ka­ri­mov and other of­fi­cials.

In his open­ing speech, Mus­lu­mov high­lighted the im­por­tant macroe­co­nomic achieve­ments achieved in the coun­try and spoke about the de­vel­op­ment trends in the la­bor mar­ket.

“Re­forms aimed at the de­vel­op­ment of the la­bor mar­ket in the con­di­tions of sus­tain­able eco­nomic de­vel­op­ment in Azer­bai­jan have cre­ated con­di­tions for the coun­try’s in­creas­ing rat­ing in this area. The Fact that Azer­bai­jan, which ranks 35th among 137 coun­tries in the 20172018 Global Com­pet­i­tive­ness Re­port of the World Eco­nomic Fo­rum, once again con­firms that,” he said.

Re­fer­ring to the pro­cesses in the la­bor mar­ket in the past pe­riod, the min­is­ter said that the chal­lenge of em­ploy­ment in this con­text, as well as the abil­ity of the able-bod­ied pop­u­la­tion to meet la­bor mar­ket needs is ur­gent.

Mus­lu­mov noted that the la­bor mar­ket is formed un­der the in­flu­ence of fac­tors de­ter­min­ing the de­mand and sup­ply of la­bor: “The de­mo­graphic sit­u­a­tion, the gen­der­age struc­ture of the pop­u­la­tion, the abil­ity to work, the em­ploy­ment of the unem­ployed pop­u­la­tion, the la­bor mi­gra­tion, the level of ed­u­ca­tion, etc. are fac­tors con­tribut­ing to the pro­posal of the la­bor force. Fac­tors af­fect­ing the de­ter­mi­na­tion of la­bor force re­quire­ments in­clude eco­nomic growth dy­nam­ics, fis­cal sit­u­a­tion, mon­e­tary pol­icy, in­vest­ment pol­icy mea­sures, etc,” he said.

The min­is­ter said that one of the key is­sues de­ter­min­ing the qual­ity of la­bor re­sources is re­lated to the level of ed­u­ca­tion and spe­cial­iza­tion. He also said that the mod­ern trends in the coun­try’s econ­omy put for­ward new chal­lenges for vo­ca­tional train­ing and high­light the chal­lenge of ad­dress­ing com­pet­i­tive de­mand in the la­bor mar­ket.

“Ac­cord­ing to the elec­tronic in­for­ma­tion sys­tem for la­bor con­tract reg­is­tra­tion, 37.5 per­cent of hired work­ers (36.5 per­cent of male em­ploy­ees and 38.6 per­cent of fe­male work­ers) have higher ed­u­ca­tion. Of to­tal em­ployed, 37.5 per­cent have sec­ondary ed­u­ca­tion, 22.3 per­cent have sec­ondary vo­ca­tional ed­u­ca­tion, 2.7 per­cent have pri­mary vo­ca­tional ed­u­ca­tion.”

Touch­ing upon the fac­tors de­ter­min­ing the sup­ply of la­bor force, the min­is­ter stressed that Azer­bai­jan is a sta­ble coun­try from de­mo­graphic per­spec­tive: “In 2006-2016 av­er­age an­nual pop­u­la­tion growth rate in Azer­bai­jan was about 1.3 per­cent. This is one of the high­est in­di­ca­tors among Euro­pean coun­tries. Dur­ing this pe­riod, the pop­u­la­tion of the coun­try in­creased by 14.7 per­cent and reached 9.8 mil­lion by Jan­uary 1, 2017. As of Novem­ber 1, 2017, the coun­try's pop­u­la­tion reached 9,883,300 peo­ple. Women con­sti­tute 50.1 per­cent of the pop­u­la­tion.”

Mus­lu­mov noted that the me­dian age of the Azer­bai­jani pop­u­la­tion is 32.3 years.

“Cit­i­zens un­der the age of 14 ac­counted for 22.6 per­cent of the coun­try’s pop­u­la­tion, cit­i­zens aged 14-29 years old ac­counted for 25 per­cent of the coun­try’s pop­u­la­tion, and cit­i­zens aged 30-64 years old ac­counted for 46.1 per­cent of the coun­try’s pop­u­la­tion,” he added. “The share of cit­i­zens aged 65 years and older was 6.3 per­cent.”

High share of youth in the pop­u­la­tion’s struc­ture led to an in­crease in the share of the able-bod­ied pop­u­la­tion, he said.

Mus­lu­mov added that this fig­ure in­creased from 59.5 per­cent in 2000 to 68.4 per­cent as of early 2017, and this in­creases the need to cre­ate new jobs.

The min­is­ter noted that in 20052016, Azer­bai­jan’s eco­nom­i­cally ac­tive pop­u­la­tion grew 17.2 per­cent.

“At the same time, higher growth rates were ob­served in the spheres of con­struc­tion, ac­com­mo­da­tion of tourists, cater­ing, in­for­ma­tion and com­mu­ni­ca­tion, as well as fi­nan­cial and in­surance ac­tiv­ity,” he said.

Mus­lu­mov said that the high share of women and youth among the unem­ployed is one of the main prob­lems in the la­bor mar­ket. He noted that the eco­nomic de­vel­op­ment of Azer­bai­jan is ob­served by the year-round in­crease in the for­eign la­bor force di­rected to our coun­try.

Mean­while, in the next eight years, the num­ber of Azer­bai­jani cit­i­zens an­nu­ally en­ter­ing the la­bor mar­ket will ex­ceed the num­ber of work­places by al­most 2.5 times.

“The to­tal num­ber of Azer­bai­jani cit­i­zens aged 18 years old will be 1.127 mil­lion peo­ple in 2017-2025,” he noted. “That is, 125,200 peo­ple will be en­ter­ing the la­bor mar­ket every year, which is al­most 2.5 times higher than the num­ber of jobs cre­ated in one year. Con­sid­er­ing la­bor mi­gra­tion and other fac­tors, we can re­duce this num­ber to 100,000 peo­ple per year. How­ever, this is also a very high in­di­ca­tor chal­leng­ing us. We must strengthen mea­sures to em­ploy the youth.”

An av­er­age an­nual real in­crease of over 3 per­cent in GDP and more than 450,000 new jobs are to be cre­ated by 2025, he added.

Mus­lu­mov men­tioned that while mak­ing a sys­tem­atic anal­y­sis, it can be con­cluded that mainly the ver­sion of the Amer­i­can model com­bined with the Swedish model has been ap­plied in Azer­bai­jan.

Ra­jabli while mak­ing re­marks at the event said that new chal­lenges re­gard­ing the changes in the la­bor mar­ket re­quire con­tin­u­ous im­prove­ment of the pol­icy in this area and im­ple­men­ta­tion of the vo­ca­tional train­ing, not­ing that this con­fer­ence is im­por­tant in terms of dis­cussing this is­sue.

He high­lighted the im­por­tance of the self-em­ploy­ment pro­gram and noted that through the re­al­iza­tion of the em­ploy­ment po­ten­tial of low-in­come fam­i­lies, this pro­gram en­ables the low-in­come fam­i­lies to cre­ate small fam­ily busi­nesses.

Newspapers in English

Newspapers from Azerbaijan

© PressReader. All rights reserved.