Official Records of New Jobs Contrary to Information about Plant Closures

Speaking October 12 at the Cabinet meeting, summarizing the development of the country for the first 9 months of 2015, President Ilham Aliyev said about 37 thousand new jobs in the country. "... Although in the first 9 months 67 thousand permanent jobs opened, at the same time about 30 thousand jobs closed," the President said, pointing to dissatisfaction with the illegal bureaucratic checks of businesses. President of the National Confederation of Entrepreneurs (Employers') Mammad Musayev said in the nine months of 2015 the country created 87,000 jobs, of which 67 thousand were constant.

In the State Statistics Committee for the same nine-month period the emergence of 37 thousand jobs cannot be traced. In December 2014, the agency reported that in the country were employed 1 million 507.7 thousand people receiving a salary, of which in the public sector worked 883.7 thousand, while in the private sector there were 624 thousand.

By April 1 of this year, the number of employees decreased 700, becoming equal to 1,507. The State Statistics Committee data on the state and the private sector are as follows: 879.2 thousand and 627.8 thousand.

By July 1 there were reported 1 million 505.9 busy people - a decrease of 1.1 thousand people.

On September 1, 2015 employment rates of the State Statistics Committee were as follows: the total number of workers – 1,509.8, data on state and private sectors of the economy - 880 thousand and 629.8 thousand people. That is, according to State Department for Statistics, from December 2014 to September 2015 the number of employed people increased by 2.1 thousand. And from July to September there were 3,900 new jobs - the highest growth this year.

The Statistical Office reported on the growth of wages by 4.4% in January-August. They received an average of 460 manats.

Meanwhile, analysis of media reports did not reveal the emergence of 37 thousand permanent jobs. On the contrary, the press is full of data on plant closures. In January, the agency Turan informed about the intention of BP Azerbaijan till the end of the quarter to cut 422 employees, the same month it was reported the closure of a large construction company Yeni Hayat. In April of this year in Baku closed 4 clinics, the company Global Construction producing facing materials closed in May. In June, stopped working 4 enterprises producing soft drinks, in August, stopped the work of the largest pharmaceutical company Riyad Pharm. In September, stopped working in Azerbaijan the Italian road construction company Todini Costruzioni Generali SPA. In October closed the Baku store of the Italian company Versace. Azerbaijan’s furniture production is bankrupt. The Eighth Kilometer Settlement can rightly be regarded as the furniture capital of Baku. A year ago, at every step you could find furniture stores. Today, those glorious times and brisk trade are gone and only the names of stores and signs "The object is rented" remind of those times, wrote the site Virtualaz.org on November 3.

This was reported on the establishment of the two leasing companies, but the investigation of Turan showed that about a quarter of new companies are fake aimed at appropriation of state funds and customs manipulation.

What is happening in the country is easily explained by the global decline in energy prices, which has a heavy impact on the oil-oriented economy of Azerbaijan. The second reason for the collapse of the business in Azerbaijan is considered to be rampant corruption and bureaucratic arbitrariness, which at the Cabinet meeting was said by President Aliyev.

Make sure to add that the crisis has also affected those who kept their jobs. According to the chairman of the Center for Research of Sustainable Development Nariman Agayev, the country has witnessed a process of price increase on food and other goods and services, while wages in some sectors of the economy declined and in others remained stable, and perhaps only in ICT it rose slightly. "For example, badly affected were the workers of services, whose wages reduced by 25%. Reduces the number of visitors to clubs, restaurants, people less go shopping. Of course, the reasons for declining revenues are higher prices of food and non-food products," the expert believes.—0--