Azerbaijan, the unemployment rate is much higher than official statistics

-A few days ago official State Statistical Committee (SSC) spread in the media and social networks data on the number of unemployed in regions. Interest in the numbers was quite large, because no one believed these figures in reality. How do you think, what is the real level of unemployment, why dopes not SSC provide the exact numbers?

-"Unemployment statistics cause not only doubts, but also laughter, because it is absurd to declare that in some area there are 1 or 2 unemployed, that is, below even the natural level, both from a scientific point of view and from a practical point of view. It is simply impossible. In each country, unemployment has its own natural level, which cannot be lower than 3-4%. Here we must pay attention to one thing - these sad figures are taken from official statistics registered as unemployed. That is, it is not perceived as an indicator reflecting the overall unemployment rate in Azerbaijan. This is an indicator that from among the unemployed people they turned to the employment office and were registered there. This process itself is a very complicated procedure. In general, registration of the unemployed in the employment management requires a large amount of additional documentation, time and money. Therefore, the unemployed are not very interested in getting registered there, because not all are given unemployment benefits; only some can get it. As for the unemployment rate, in order to determine it, it is necessary to conduct an inspection of household labor. The State Statistics Committee should conduct such an inspection together with the international labor organization. However, this does not give the right result, because here the methodology is not the main tool, it depends a lot on its application. Unfortunately, the methodology of the international labor organization is applied with large errors. This serves specific political objectives in order to confirm the unemployment rate. However, unemployment in Azerbaijan continues to be the main problem. Recently, a result of a large EU survey conducted in Council of Europe member countries was made public. According to a survey in Azerbaijan, unemployment is at the head of the problems. 80% of respondents indicated that in Azerbaijan problem number one is unemployment. It seems to me that today in Azerbaijan the unemployment rate is much higher than the official statistics, because official figures distort reality. In fact, the unemployment rate is about 20% of the employed population. One out of five today is unemployed. The talk is about the working population. Unfortunately, unemployment is most common among young people. Even specialized personnel are now unemployed. Especially after the devaluation increased unemployment in the private sector. True, the number of temporary jobs has increased. This is due to investments in agriculture, as well as recent changes in the construction industry. However, permanent jobs still remain a problem. Citizens of Azerbaijan are still looking for a permanent, well-paid job.

- Deputy of the Milli Majlis, member of the Board of the New Azerbaijan Party, Aydin Huseynov, noted that "In Azerbaijan, one can say, there are no problems with unemployment. The unemployment rate in the country is below 5%. Even in the near future in Azerbaijan there will be a need for foreign labor. In your opinion, how does this correspond to the truth, and for what purpose did the deputy voice this?

- His words in connection with unemployment are not justified and are far from the existing reality. This suggests that the deputies of the Milli Majlis do not communicate with the population at all. And even if they communicate, they simply tell a lie. In order to protect the political line of the party they represent, they make such statements. In fact, it is enough to talk with the population to understand the true situation and the unemployment rate.

- Nevertheless, despite the presence of unemployment, low salaries of state employees, there are not so many hungry people in Azerbaijan. If people do not work, get low salaries, how do they live?

-In Azerbaijan, the shadow economy, as well as informal employment, are still a problem. This was also discussed at the Cabinet meeting on the results of the 9 months of 2018. Today, for some part of the citizens of Azerbaijan, the source of income is the very shadow economy. That is, solidarity plays a special role. People support each other, lend money, help. In some matters, relatives and friends share the costs, showing solidarity. Funds coming from abroad play a significant role in a certain stabilization. Therefore, the situation in Azerbaijan has not yet reached the level where the population is starving. Naturally, a lot depends on the diet. At the expense of what food do people today satisfy their physiological needs? This is also a very important question. Naturally, many cannot afford expensive products, including meat, fish. However, we must bear in mind that in the absence of jobs, the problem will be increasingly aggravated.

- For many years, the government has been trying to eliminate unemployment. However, the results are not encouraging. What do you think is missing? What prevents to fix the problem?

- Such initiatives can come from both the public sector and the private sector. Unfortunately, there is no free initiation in the public or private sector. The level of economic freedom is very low. Recently, the ranking table of the Canadian Freizer Institute was published, in which the situation in Azerbaijan in comparison with neighboring countries was much worse. This gives grounds to assert that economic freedom in Azerbaijan still remains a serious problem. Without solving this problem today, without an appropriate environment for the realization of an entrepreneur, without realizing his personal freedom, it will be impossible to achieve a solution to the issue of unemployment. First of all, there should be ample opportunities for personal, economic, initiative freedom so that the problem can be solved radically.

In total, what steps have the authorities taken to eliminate unemployment? What programs are implemented?

- The elimination of unemployment is one of the main economic and social functions of the state. The state should not only accept programs in this direction, should also develop a strategy. The state should also create conditions for small and medium businesses to play a significant role in the opening jobs. And for this, first of all, it is necessary to reduce the role of the state in the economy. Barriers should be removed for private sector activities. And this consists of attracting investments into the country, their convenient investment, as well as the proper organization of existing institutions. Today, the courts, the justice system, as well as other institutions protecting the rights of business and entrepreneurs in Azerbaijan should work. Therefore, the possibility of pre-investment in Azerbaijan and thereby creating resources for opening additional jobs seems to be limited. The state will not be able to solve the problem of unemployment and the opening of new jobs by cotton growing, viticulture, and the breeding of silkworms. This is more of a care in the past. This is just an erroneous policy of supporting production in the agrarian sector using slave labor.