Page 41 - Azerbaijan State University of Economics

Vilayat İsmayilov, Nahid Almasov, Sarraf Mirzayev:The Programme of Reduction and
Profilling of Long-Term Unemployment in Azerbaijan

INTRODUCTION
One of the priorities of the state in regulating of the labor market is the solution of
the problem of long-term unemployment. This is a problem not only for countries in
transition, but also for developing and developed countries. In order to reduce the
existing tension in the country's labor market, it is advisable to use modern
technologies that affect employment and are aimed at eliminating long-term
unemployment in order to increase the effectiveness of measures implemented by
the state.

Full-time employment is a source of unemployment, and voluntary unemployment can
exist when vacancies occur, when the level of wages or the nature of the work does not
provide the employee. In the case of forced unemployment, wages are interrelated with
the establishment of wages above the point of market equilibrium, in which cases there
is a difference between the demand for labor and the supply. Since there is a certain
relationship between the price level and the unemployment rate, in these cases the
concept of natural unemployment is a very important element in the analysis of
economic growth and inflation. The government's attempt to reduce the natural rate of
unemployment may lead to an acceleration of inflation. The key question here is what
methods the state uses to reduce the level of natural unemployment.

Considering the problems of optimal tax development, it is explained that the key
role of taxation related to the income of the super-rich population is different from
the income of other social groups. Some of the super-rich may be "superstars" for
whom small differences in talent increase to much larger differences in income,
while others may work in winner-take-all markets, so that their efforts to climb the
ladder successfully reduce returns for others [Rodrik D. (1998), and Shoer, F.,
Slemod, F., (2020)]. The study, critically assessing the prevailing measures of global
poverty, notes that modern absolute measures ignore important social consequences
for well-being, while popular, strictly relative measures ignore the absolute standard
of living of the population. [Martin, R., 2020]. Argues that a new hybrid measure is
required, combining absolute and weakly relative measures that correspond to how
national borders differ in different countries

Summarizing the data of various studies on unemployment, we come to the
conclusion that the unemployment rate was the highest in all countries of the world
during the pandemic, its results will have a negative impact on reducing
unemployment for several years, and in this regard, the study of the problem is
relevant in modern conditions. Unemployment is not only a decline in income, but
also a gradual professional degradation, a violation of human dignity.

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