15 March 2025

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A JOB IS EASIER TO FIND IN YOUR OWN HOMELAND

Azerbaijan has become an attractive country for migrant workers

Author:

01.03.2012

"Where is a good place to live?" Ten years ago in 99% of cases the answer would have been the same: "In trouble-free Europe." And, indeed, the Old World was a haven for those who had survived wars and oppression and were looking for permanent work…At the same time, it was the European countries that were "guilty" of the so-called "brain drain" and irreversible migration.

Today we see a different picture: people are abandoning Europe. In 2011 tens of thousands of people in Portugal, Greece, Ireland, Spain, Italy and other countries emigrated. Many set off for the southern hemisphere, to southern Africa, Australia and Argentina. There was also intra-European emigration and many searched for work in trouble-free Germany where there was an influx of workers from Spain, Greece, the Baltic republics, Bulgaria, Poland and Romania. Now for the people of the former USSR Europe doesn't seem so stable. And that can easily be explained.

 

In search of a better life

The debt crisis in Europe provoked a sharp increase in unemployment. According to the European Union's statistical service, in December 2011 unemployment in the countries of the Eurozone was 10.4%, whereas a year earlier the figure was 10%.

The situation was the same, according to Eurostat, in the European Union as a whole. In December 2011 the unemployment level was 9.9% compared with 9.5% in December 2010.

The crisis once again demonstrated the huge gap between the economies of the southern and northern countries. For example, there was a low level of unemployment in Austria (4.1%), the Netherlands (4.9%) and Luxemburg (5.2%). The unemployment level was highest in Spain (22.9%), Greece (19.2% in October 2011) and Lithuania (15.3% in the 3rd quarter of 2011).

Even in trouble-free Germany in January this year unemployment increased by 0.7 of a percentage point compared with December and was fixed at 7.3%.

High unemployment and a reduction in per capita expenditure: that was the new trend on the European labour market. What is more, most of the unemployed were young people, which is very worrying. Flows of migrants, which are becoming more and more difficult to control, are increasing within Europe. In short, the European countries are not the place to find a "better life". Furthermore, the level of unemployment and poverty is being reduced for the citizens of countries whose economy is developing despite the many upheavals and crises and new jobs are opening up.

According to the Azerbaijani State Statistical Committee, in 2011 the level of unemployment in the country was 5.4%. Last year about 94,000 new jobs, of which 72,700 were permanent, were found in the country. These and other factors helped to reduce the level of unemployment by 0.5 of a percentage point, the State Statistical Committee says.

In general, according to Azerbaijan's Minister of Labour and Social Protection of the Population Fizuli Alakbarov, 930,000 new jobs have opened in Azerbaijan since 2003.

"In total, in the 20 years of independence the poverty level in the country has gone down from 67 to 9% and the unemployment level from 17 to 5.6% (details for 2011 - author's note)," Alakbarov said.

As we have seen, the level of unemployment in Azerbaijan is substantially lower than in many European countries. What is more, the official figures do not cover persons engaged in individual labour activity without registration. These include the vast army of skilled workers who specialize in repairing apartments and other services, maids, nannies, private tutors, etc. The level of unofficial employment in the country is quite high, which the State Statistical Committee has often remarked upon, and therefore the figure of 5.6% can be seen as relative.

Furthermore, there has even been a shortage of manpower in the country. According to the deputy head of the State service for labour inspection of the Azerbaijani Ministry of Labour and Social Service of the Population, Rauf Tagiyev, in 2012 there will be an increase in the quota for attracting migrant workers in the country. Thus, whereas in 2011 the number of migrant workers engaged in the Azerbaijani economy was about 9,000, this year it may reach 10,000.  "The increase in the quota is linked with the implementation of major projects in Azerbaijan, including the construction of a special arena for the Eurovision-2012 contest and other major facilities," Tagiyev said.

In other words, there is a demand for manpower in the construction sphere in Azerbaijan which, as we know, is developing by no means in every country. Today, the picture is quite the opposite in a number of European countries where the construction sector is in a state of stagnation. Investors have halted the construction of a whole number of facilities, including hotels, homes and schools…

Against the background of a deep economic depression, a number of European countries are continuing to reduce their expenditure, mainly by cutting social benefits. The situation in this sphere in Azerbaijan is quite different. More than a quarter of state budget expenditure for 2012 will go towards the implementation of socially orientated measures. At the same time, the increase in social spending this year will be 1%.

Unemployment and migration are just a part of the problems in the European countries. The international ratings agency Fitch expects a reduction in the rate of growth of the economy of the Eurozone this year of up to 0.4%. According to the agency, this may happen because of a rigid economy and a deterioration in the conditions on the financial markets, which will lead to a tightening of credit conditions all over the world. 

According to a report of the World Bank "Global Economic Prospects for 2012", "the debt problems of the Eurozone and a slackening of growth in some countries with developing markets are reducing the prospects for a growth in the world economy".

Nevertheless, developing economies in many ways are surpassing the developed ones, their proportion to world GDP is constantly growing and they are becoming more attractive to foreign investments. For example, Azerbaijan's GDP has grown 20 times in the last 20 years and in the next decade it is expected to double. According to Sahin Mustafayev, Azerbaijani Minister for Economic Development, the growth in GDP is due to be ensured by the development of the non-oil sector, whose ratio to GDP will be increased to 80%. The modernization of the country's economy in the shortest possible time is a priority plan.

"This will be achieved by such measures as the all-round encouragement of innovative development, the implementation of a policy of the industrialization of the economy, the creation of industrial zones, an increase in the volume of production of export-orientated, competitive output produced on the basis of state-of-the-art technology and broader use of intensive methods in the agrarian sector," the minister said.

One way or another, these measures will contribute to the opening up of new jobs.

In short, the number of people coming to Azerbaijan to a permanent place of residence (PPR) surpasses the number leaving the country, which speaks volumes. For example, in 2011 2,200 people arrived in Azerbaijan to their PPR, whereas 500 left the country.

Statistics show that whereas at the beginning of the 1990s there was a tendency for an exodus of labour resources from Azerbaijan, now there are a greater number of people coming here to work.

As we can see, Azerbaijan's dynamic development has made the country attractive for foreigners. It would be desirable, of course, if its citizens, and not migrants, took part in the further development of the country's economy. Especially as there are many spheres where specialists could be used, such as in construction, IT, oil and gas extraction, oil refining, tourism, the hotel industry, and so on…

At the same time, the increase in migration we are seeing today is bound to be gratifying. What is important is that those coming into the country are highly-qualified specialists who will contribute towards an increase in economic efficiency and encourage a growth in foreign investment which will lead, in the long term, to an increase in the profits of companies and in the incomes of their employees.



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