Amid significant technological innovations that are having a major impact on labour markets and business models, one of the key strategic advantages of countries is knowledge, skills, innovation potential and human capital. In this regard, the development of human capital is an important component of Azerbaijan’s long-term development strategy.
Minister of Labour and Social Protection of Population Anar Aliyev made these remarks while speaking at the panel discussion titled “Investing in Human Capital and the Skills of the Future” at the Azerbaijan International Investment Forum.
He emphasized that improving the social well-being of the population is at the core of the strong social state concept implemented under the leadership of President Ilham Aliyev. He highlighted significant increases in social payments as a result of five social reform packages implemented in 2018–2026, covering 4 million people and providing an additional annual financial capacity of 8 billion AZN. He noted that during this period, the number of people provided with employment by the Ministry increased 3.6-fold, the number of people involved in the self-employment programme increased 2.7-fold, and the number of people involved in vocational training increased 7.1-fold. The number of employment contracts increased by 44.6 percent to 1.86 million, while the wage fund increased 3.4-fold.
Anar Aliyev also noted that digital transformation in the fields of labour and social protection has been successfully implemented. He highlighted that 90 percent of the Ministry’s 152 services have been digitalised, including 55 proactive services, and that 97 percent of employment contracts are concluded electronically through the “Labour and Employment” subsystem.
The Minister stated that the reforms carried out in the country approach human capital development not only in terms of the knowledge and skills acquired during the education stage, but also as a continuous development process throughout a person’s working life. To this end, the development and regular improvement of vocational and qualification standards in line with labour market requirements, strengthening career guidance services, and more active involvement of employers in workforce training are of particular importance.
A total of 1,700 vocational and qualification standards have already been developed and made available to employers and other stakeholders. This makes an important contribution to ensuring workforce training in line with labour market requirements, objectively assessing vocational skills and developing a competitive workforce.
Noting that training courses are organised in 175 occupations for unemployed and jobseeking people, Anar Aliyev said that cooperation is being carried out with nearly 180 public and private education and training institutions in this area. Developing a workforce with the new knowledge and skills necessary for the development of the green economy will contribute to creating new employment opportunities and adapting the labour market to the green transformation.
The Minister noted that one of the important areas of state employment policy is further strengthening sustainable cooperation mechanisms among universities, employers and government institutions. This will create opportunities for decent employment for the workforce, particularly young people, provide businesses with more suitable personnel, and increase productivity and competitiveness in the economy.
It should be noted that the panel, attended by officials of government institutions, business representatives and international experts, discussed the role of human capital development in ensuring Azerbaijan’s long-term competitiveness and economic diversification, the skills of the future, digital opportunities and modern leadership approaches. An exchange of views was also held on strengthening cooperation among universities, businesses and government institutions, increasing employment opportunities, supporting innovation and entrepreneurship, and other issues.
