"Registration as an unemployed person is already a job in itself"

President Ilham Aliyev, addressing the participants of the V Conference of Labor Ministers of the Organization of Islamic Cooperation in Baku on November 23, extolled the achievements of Azerbaijan in tackling unemployment and poverty. The president claimed significant strides, pointing to a decrease in unemployment and poverty rates, coupled with substantial increases in social payments.

President Aliyev highlighted the impact of four social reform packages implemented in the last four years, covering 40 percent of the Azerbaijani population. He emphasized that the minimum wage, wage fund, median salary, minimum pension, and average monthly pension have all experienced notable increases.

However, a closer look at the broader social landscape reveals a nuanced narrative. Over the past decade, the number of recipients of targeted state social assistance has nearly halved, raising eyebrows among independent economists. In 2014, 119,502 families received targeted state social assistance, but by November 2023, this figure had dwindled to 65,000 families.

Official statistics suggest a modest 5 percent poverty and unemployment rate in the country. Skepticism, however, permeates these figures among independent economists who question the accuracy of the official data.

Deputy Chairman of the Milli Majlis Committee on Labour and Social Policy, Malahat Ibrahimgizi, contends that the social situation in Azerbaijan has vastly improved in recent years. She explains this transformation to Turan with comprehensive initiatives, including the 2003 state program on poverty reduction, supported by the UN and the World Bank. Ibrahimgizi claims that the poverty rate, once hovering around 50 percent, has now diminished to 5-6 percent.

Economist Natig Jafarli, in an interview with Radio Azadlig, acknowledges the significant economic progress over the past two decades,but raises concerns about the real impact on citizens. Adjusting for inflation and rising prices, he questions whether the purported increases in minimum pensions and wages translate into tangible improvements.

The Economist echoes skepticism, pointing out the intricacies of Azerbaijan's registration system for unemployment. Unlike many automated systems worldwide, Azerbaijan's process requires significant effort, possibly deterring eligible individuals from accessing unemployment benefits.

Jafarli underscores the challenge in gauging actual unemployment figures due to the prevalence of informal jobs and a dearth of official positions. With only 1.7 million hired employees in a population of around 6 million able-bodied individuals, the economist asserts that real unemployment figures remain elusive.

Moreover, Jafarli points to a governmental shift in social work, suggesting that individuals lured into low-wage jobs are inadvertently disqualified from receiving social benefits. This confluence of factors casts a shadow over the government's assertions of a rosy economic landscape, prompting deeper scrutiny into the intricacies of Azerbaijan's social and economic fabric.