Page 47 - Azerbaijan State University of Economics

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

The social and institutional determinants of a country's economic development are
increasingly attracting the attention of development professionals. They try to
determine the impact of social capital at the macro level and related social factors on
economic development in developed countries. Social capital at the macro level
includes various aspects of the quality of institutions and is closely related to the
distribution of income, employment, and social cohesion. The relationship of the
main components makes it possible to group the initially selected social
determinants of economic development into three components (human and social
capital, income equality and redistribution). Since these components have a positive
impact on economic development, as measured by the human development index,
and on increasing employment in the country.

The development models of any country are determined by many factors. These factors
differ in developed and less developed countries. Developed countries tend to rely on
human resources, while less developed countries build their well-being on available
natural resources. In any case, the distribution of income depending on the level of
employment in the society of any country is an important component of the competitive
potential of entrepreneurship, which plays an important role in solving problems related
to employment [Manuela, T., 2019]. Some researchers on the role of incentives in the
provision of goods and services that have significant social returns that are not reflected
in private income, and where results and effectiveness are difficult to measure, note how
the presence of prosocial motivation among the agents involved in the provision of these
goods and services changes the structure of incentives [Timothy, B. and Maitrish, R.
Gh., 2020]. Summing up the results of various studies on unemployment, the author
comes to the conclusion that the unemployment rate during the pandemic reached the
maximum level in all countries of the world, the results of which will have a negative
impact on the decline of this indicator for several years, and from this point of view, the
study of the problem is relevant in modern conditions.

Using a new approach, this study examined the impact of modular training and
retraining programs for the unemployed on reducing the unemployment rate in the
country. Also, we studied the use of modular programs to predict the unemployment
rate in the studied countries.

RESULTS

The most effective form of the reverse effect of long-term unemployment on the
labor market is considered to be active programs that affect the employment of the
population.

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