ILO reports Azerbaijan on top for middle class size in South Caucasus

Source: AzerNews

Azerbaijan leaves behind the other two South Caucasus countries for the size of the middle class population, according to an International Labour Organization (ILO) report.

The annual report on the state of labor markets worldwide, the "World of Work Report 2013", issued on June 3, shows that some 20 percent of the Azerbaijani population has a daily income worth $10-$50.

In Georgia and Armenia, the other two regional states, only about 10 and 8 percent of the population has such income respectively, according to the report.

Azerbaijan was regarded as a country with the population's income higher than the average level. Most of the country's population was defined as the "floating group" with earnings of $4-$10 a day.

About 18 percent of Azerbaijan's population falls under the group of people earning less than $4 per day, ILO said.

In Georgia, some 40 percent of the population falls under the low-income group (earning less than $4 a day) and in Armenia, the number of the needy people amounts to 20 percent.

ILO says that as the global economy continues a slow recovery from the financial crisis, most emerging and developing countries are experiencing rising employment and narrowing income inequalities compared to their high-income counterparts.

However, the gap between rich and poor in most low and middle-income countries remains wide. Many families who have managed to rise above the poverty line are at risk of lapsing back.

The report shows that middle-income groups in many advanced economies are shrinking.

Raymond Torres, Director of the International Institute for Labour Studies, the research arm of the ILO, said that the shrinking size of middle-income groups in advanced economies is a matter of concern, not only for the inclusiveness of those societies but also for economic reasons.

According to him, long-term investment decisions by enterprises also depend on the proximity of large and stable middle-income groups which are in a position to consume.

"More and better jobs are needed so there can be a more balanced distribution of income in both advanced and developing economies, Torres said.