Direct Request (CEACR) - adopted 2022, published 111st ILC session (2023)

Employment Policy Convention, 1964 (No. 122) - Azerbaijan (Ratification: 1992)

Articles 1 to 3 of the Convention. Implementation of an active employment policy.Participation of the social partners. The Committee notes with interest the set of measures taken by the Government with a view to promoting full and productive employment in the country. The Committee notes in this regard the approval of the Employment Strategy of the Republic of Azerbaijan for 2019-2030 on 30 October 2018 and its Plan of Action for 2020-2025 on 13 February 2020. The overall goal of the Employment Strategy is supporting full employment and decent work and increasing labour productivity. The Strategy includes among its main objectives: carrying out a pro-employment economic development policy and supporting micro, small and medium-sized businesses; improving the legislative framework and institutional structure of the labour market; preventing non-formal labour relations; and improving the monitoring and forecasting system for the labour market. The Employment Strategy also envisages the adoption of measures to strengthen social dialogue, including improving the institutional system of tripartite dialogue and increasing the efficiency of the activities of the Tripartite Commission for Social and Economic Issues. The Committee further notes that, according to the Employment Strategy report, key stakeholders, including workers’ and employers’ organizations and non-governmental organizations, will be involved throughout the implementation and evaluation process. The Committee notes that the Government does not provide information on whether consultations are carried out with representatives of persons working in rural areas and those working in the informal economy. The Committee requests the Government to continue to provide detailed updated information on the nature, scope and results of the measures taken to promote full and productive employment, including those adopted in the framework of theEmployment Strategy of the Republic of Azerbaijan for 2019-2030 and its Plan of Action. It further requests the Government to provide concrete examples of the manner in which the views of the social partners are taken into account in the development, implementation and review of employment policies and programmes. In addition, it reiterates its request to the Government to provide information on whether consultations are carried out with representatives of persons working in rural areas and those working in the informal economy, as well as with representatives of other groups concerned by the measures to be taken.

Article 2. Compilation and use of employment data. Labour market trends. The Committee notes the adoption of the Presidential Decree of 4 July 2019, which establishes the National Observatory on the Labour Market in the Republic of Azerbaijan. Its objective is to provide support in making effective management decisions as a result of coordinated analysis, adjustment and monitoring of data on the situation in the national labour market and identification of future trends. With regard to employment trends, the Committee notes that, according to the data available to the ILO Statistics Department (ILOSTAT), in 2021, the labour force participation rate was 67.1 per cent (70.1 per cent for men and 64.2 per cent for women), the employment-population ratio was 63.1 per cent (66.7 per cent for men and 59.7 per cent for women), and the unemployment rate was 6 per cent (4.9 per cent for men and 7 per cent for women). The Committee requests the Government to continue to provide detailed updated information on the measures taken to improve its labour market information system, including information on the manner in which the data collected is used in designing, implementing and reviewing employment policy measures taken or envisaged.It also requests the Government to continue to provide updated statistical information on labour market trends, including on employment, unemployment and visible underemployment, disaggregated by sex and age.

Public employment services. The Committee notes the Government’s indication that measures have been taken to create a new model of employment services, including the establishment of the DOST Agency alongside DOST Centres. The Government reports that the establishment of 16 regional DOST Centres and different branches for the 46 regions in the country is planned for 2025. The Committee also notes the statistical information provided by the Government regarding the number of available job vacancies posted and employment contracts registered in the Electronic Information System of the Ministry of Labour and Social Protection. Moreover, the Government refers to the implementation since 2018 of a hiring incentive programme to subsidize part of the wages of persons hired based on referrals from the public employment service. The Government reports that 447 persons have been referred to jobs by the public employment service (167 of whom were hired under the programme for joint financing of wages). The Government also refers to the enactment of the 2018 Employment Act and the 2017 Unemployment Insurance Act, which entered into force on 29 June 2018 and on 30 June 2017, respectively. It indicates that the new legislation introduced measures to strengthen social protection for the unemployed, as well as persons that face difficulties in securing employment and for the families of persons who have died in military service; as well as to establish flexible financing mechanisms using the principle of targeting. The Committee requests the Government to provide detailed updated information on the nature and impact of the public employment service reform. It also requests the Government to provide detailed updated information on the impact of the measures implemented by theDOST Agency and its different regional centres in assisting workers in accessing productive employment opportunities.

Education and training. The Committee notes that the Employment Strategy envisages the adoption of measures to develop the skills of the workforce, such as the establishment of economic incentive mechanisms to: encourage employers to participate in workforce training; developing a system for the validation of competencies obtained from informal training; improving vocational training and career development courses for adults as well as the vocational education system; and developing and implementing mechanisms for organizing work-based learning and dual education. Furthermore, the Committee notes from the Employment Strategy report the adoption of the “Strategic Road Map for the development of vocational education and training in the Republic of Azerbaijan” and the establishment of the State Agency on Vocational Education under the Ministry of Education. The Committee also notes the information provided by the Government concerning the measures taken to adapt educational priorities to the needs of the labour market. In this respect, the Government refers to the approval of Ministerial Decision No. 474 of 12 December 2019 on rules for the development, revision, approval, registration and extension of validity of professional and qualification standards. It further refers to the adoption of Ministerial Decision No. 475 of 12 December 2019, which establishes industry commissions on skills development and their status. The Government indicates that, in the framework of these commissions, between 2019 and June 2021, 446 occupational standards reflecting labour market requirements were discussed and adopted. The Government adds that an online Register of Professional and Qualification Standards was established as part of the internet portal of the Ministry of Labour and Social Protection. Lastly, the Government indicates that regional centres for vocational education are located in Baku, Ganja, Goychay and Nakhchivan. It adds that it aims to increase the number of regional vocational training centres to 10 by 2030. The Committee requests the Government to provide a copy of the Strategic Road Map for the development of vocational education and training in the Republic of Azerbaijan.It further requests the Government to provide detailed updated information, including statistics disaggregated by age, sex and region, on the various training programmes implemented, as well as on their impact in terms of increasing access to decent and lasting employment opportunities for men and women.

Workers vulnerable to decent work deficits and exclusion. The Committee observes that, according to ILOSTAT, in 2021, the youth unemployment rate was 14.2 per cent (12.3 per cent for men and 16.5 per cent for women), which is more than twice the overall employment rate of 6 per cent for adults aged 15 to 64 during the same period. The Government also reports that, in 2017, 23 per cent of young persons aged 15 to 24 were not in employment, education or training (NEET). The Committee notes that the Employment Strategy envisages the adoption of measures with a view to increasing the coverage and efficiency of active labour market programs, strengthening the integration into the labour market of persons with special needs and those who have difficulty in finding jobs. The Employment Strategy establishes the target of achieving full and productive employment and decent work for all women and men, including for young people and persons with disabilities by 2030. It also sets out the target of reducing the rate of NEETs to 15 per cent by 2030. Moreover, the Government refers to implementation since June 2019 of the project “Creation of inclusive and accessible jobs for socially vulnerable groups” in cooperation with the United Nations Development Programme (UNDP) and the United Nations Population Fund (UNFPA). The objective of the project is to promote access to the labour market, self-employment and social protection of these groups. In March 2020, a memorandum was signed between the Ministry of Labour and Social Protection, the Central Bank of Azerbaijan and the Association of Banks of Azerbaijan with the objective of supporting self-employment among persons in vulnerable situations. In this regard, the Government reports that, between 2020 and June 2021, 1,051 persons received support to create a small business. The Government also indicates that, according to section 11 of the 2018 Employment Act, additional support is provided to persons in particular need of social protection and persons experiencing difficulty in finding jobs by providing vocational training courses with adapted curricula, establishing employment quotas, and creating additional jobs and social enterprises. The Committee requests the Government to continue providing detailed updated information on the measures taken or contemplated to promote access to formal and lasting employment for groups vulnerable to decent work deficits, in particular young persons, women, persons with disabilities,unskilled or low-skilled workers and migrants. The Committee further requests the Government to send updated statistical information on the impact of such measures.

Small and medium-sized enterprises (SMEs). The Committee notes that, according to information available on the website of the Organisation for Economic Co-operation and Development (OECD), SMEs in Azerbaijan are an important source of employment, but their full potential remains untapped. In 2020, SMEs generated 42 per cent of total employment. Since 2018, Azerbaijan has made significant efforts to boost SME development through the establishment of the Small and Medium Business Development Agency (SMBDA), which delivers tailored support for SMEs (such as training and mentoring services) in Baku and across the country through 21 Development Centres. The Committee also notes that policy actions are being implemented in cooperation with the OECD to boost development and digitalization of SMEs. Lastly, the Government refers to the continuation of the implementation of programmes promoting self-employment in cooperation with local and international organizations. The Government reports that, between 2019 and 2020, 22,716 participants became engaged in self-employment. The Committee requests the Government to continue to provide detailed updated information on the nature and scope of measures taken to promote and support SMEs for job creation, as well as on their impact, including statistical information on the number and type of enterprises established and the number of jobs created by such enterprises.

Informal economy. The Government refers to the approval of the Plan of Action to Tackle Informal Employment in Azerbaijan by enactment of the Order of the President No. 3287 of 9 October 2017. In addition, the Government indicates that new regulations regarding the prevention of informal employment have been adopted and a range of bills introducing amendments to legislation are under consideration. It adds that the new amendments have strengthened tax, administrative and criminal law provisions to support efforts to tackle informal employment. Measures introduced in the Tax Code include putting in place a simplified tax rate of 2 per cent for entrepreneurial activities and simplification of tax procedures for self-employed persons. Incentive mechanisms to promote the transition from the informal to the formal economy are also being developed. Lastly, the Government adds that the increase in the minimum wage introduced in 2019 has helped to reduce informal employment in the country. The Committee requests the Government to provide a copy of thePlan of Action to Tackle Informal Employment in Azerbaijan. It also requests the Government to continue providing detailed updated information on the nature, scope and impact of the measures adopted to combat informality and facilitate the transition to formal employment.