Azernews.Az

By Leman Mammadova

Joint projects with European Union (EU) in various social areas serve to improve the work of the Minister of Labor and Social Protection of the Population.

The twinning project, successfully completed in Azerbaijan with the support of EU, has helped to improve the country’s employment strategy, Sahil Babayev, Minister of Labor and Social Protection of the Population, said at a closing event of the Twinning project "Support to the Ministry of Labor and Social Protection in modernizing Public Employment Services in Azerbaijan" on 4 October.

Babayev noted that over 100,000 people enter the labor market in Azerbaijan annually.

The minister noted that it was important to adopt international experience to ensure sustainable dynamics in social security.

Babayev pointed out that a population employment strategy has been developed based on foreign practice.

"In this regard, Azerbaijan has passed a law regulating employment issues, as well as developed an employment strategy based on international experience and standards,” he said.

In his words, the self-employment program continues to expand in Azerbaijan. “For example, by late 2018, it covered 6,000 families, and in 2019 -10,000 families.”

He added that this program also aims to develop micro-business in Azerbaijan.

Babayev further stressed that the World Bank (WB) is expected to join the self-employment program in Azerbaijan, which will have a stimulating effect on this process.

“We expect that the WB will join the self-employment program in 2020, and this will lead to an increase in current indicators to cover 10,000 families and at least up to 15,000 [families] in the near future,” he said.

He underlined that the implementation of initiatives in the field of self-employment is aimed at creation of new jobs in the public and private sectors, and development of micro-business in the country.

Babayev went on to note that this year, the number of labor agreements drawn up in accordance with labor legislation has significantly increased in the country.

He noted that over the nine months of 2019, there has been a high dynamics in the conclusion of labor agreements, which has provided growth of up to 30 percent.

“The number of labor agreements concluded over the nine months of 2019 increased by 126,000. Moreover, 91,000 agreements have been concluded in the private sector, and 35,000 in state,” the minister said.

In his words, this fact confirms that citizens support the reforms carried out by the government and give preference to the execution of labor agreements in accordance with the labor legislation of Azerbaijan.

“Such positive dynamics will contribute in the future to increasing transparency in the field of labor and employment, which is, first of all, in the interests of citizens themselves,” he said.

Babayev also pointed out that by late 2019 Azerbaijan expects an increase in average wages by 15 percent.

“This fact is a consequence of reforms carried out in the social sphere by the government of Azerbaijan. In all probability, this indicator will be set more accurately by late 2019, but according to our forecasts, it will vary between 14-15 percent. This means that pensions will be indexed in accordance with this indicator since 2020,” he noted.

“We believe that the new package of social reforms will continue in the future, and will affect the average salaries of citizens, as well as the minimum level of pensions,” he said, adding that reforms in the field of labor and social security of citizens will continue in subsequent years.

Kestutis Jankauskas, EU Ambassador to Azerbaijan, in turn, noted that the sphere of social protection in Azerbaijan is one of the areas characterized by the most serious changes.

“As an example of this, we can mention the reforms carried out in pension system, the implementation of projects related to social services, and the creation of the DOST Agency,” he said.

Jankauskas stressed that investing in education, human capital, their relationship with the sphere of employment is the path leading to the future.

“The EU is satisfied with its participation in this work. We are always ready to share best practices,” he added.

The Twinning project "Support to the Ministry of Labor and Social Protection in modernizing Public Employment Services in Azerbaijan" was launched on September 18, 2017. The project aims to strengthening the institutional capacity, management and operation of the State Employment Service, to modernize and improve state-run employment services, to better address the needs of employers and employers. The project partners are the European Union, Lithuania (main partner), Austria and Sweden.

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Leman Mammadova is AzerNews’ staff journalist, follow her on Twitter: @leman_888

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