Employee numbers decline in both public and private sectors, MP says

As of February 1 this year, the number of wage-based employees totaled 1,757,000. Of these, 879,500 worked in the state sector, and 877,500 worked in the non-state sector. Official statistics show that the number of employees on employment contracts decreased by 21,500 compared to January 1. Thus, the employment sector started the year with 1,778,500 employment contracts.

Azernews reports that this information was shared by Vugar Bayramov, a deputy of the Milli Majlis (Parliament) of Azerbaijan, on his social media account.

He noted that the decrease in the number of employees under contract occurred in both the state and private sectors:

“The drop in the private sector was more significant, with a reduction of 18,200 employees. The State Statistics Committee reported a decrease of 3,300 employees in the state sector compared to the previous month.”

Bayramov highlighted that the decline in contracts was mainly driven by changes in the private sector. He explained that the reduction was related to tax breaks for microentrepreneurs, which began on January 1, 2025. Microentrepreneurs with annual revenues under 45,000 manats now receive a 75% tax discount, and the requirement for having at least three employees was removed, leading to fewer labor contracts in the private sector.

While the decrease in the public sector was attributed to structural reforms, the MP stressed that increasing private sector employment is essential for job creation. He also noted that the public sector still dominates in terms of labor contracts, with 2,000 more contracts registered in the state sector compared to the private sector.

“Boosting the private sector's role in employment should be a priority, as it is crucial for driving job creation,” Bayramov concluded.