Within the framework of socio-economic reforms implemented under the leadership of the Head of State, the development of the labor market in Azerbaijan, the improvement of the normative-legal framework in this area, and the implementation of regulatory mechanisms based on international experience are consistently prioritized.
The incentive-based tax policy implemented to formalize workplaces, ensure transparency in labor relations, and “whiten” salaries continues to have a positive impact on the labor market. Steps taken in this direction have yielded significant results, particularly in increasing employment and legalizing wages in the private sector of the non-oil industry.
As of September 1, 2025, the number of employment contracts in the private non-oil sector exceeded 1 million. Since the beginning of 2019, the number of employment contracts in this sector has increased by approximately 470,000 units, or 87%. Nearly 55% of all employment contracts are accounted for by the non-oil sector.
The majority of employment contracts in the non-oil sector are concentrated in trade (299,000), services (232,000), and industry (128,000). In the construction sector, this figure is 98,000; in transportation, 46,000; in agriculture, 38,000; in finance, 36,000; in communications, 24,000; and in other sectors, 109,000. During the first eight months of 2025, out of the 26,600 new employment contracts registered in the non-oil private sector, most were observed in services, trade, and construction.
Tax reforms, implemented based on seven-year incentives and aimed at stimulating employment in the non-oil sector, have played a decisive role in achieving these significant results alongside economic development and new job creation. These achievements accelerate Azerbaijan’s transition to a sustainable and inclusive development model for the post-oil era and simultaneously demonstrate the successful realization of the state’s primary objective—ensuring stable employment and improving social welfare in the non-oil private sector.
