Page 42 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.78, # 1, 2021, pp. 40-65

The unemployed person begins to feel useless. All this leads to social stratification
of society and causes an increase in social tension [Galbraith J.K. 2012]. Therefore,
only a socially oriented market economy, in which the state actively supports the
development of competition, helps to reduce conflicts between employees and
employers, implements extensive programs to support socially vulnerable segments
of the population, and avoids socio-political cataclysms. The problems associated
with the reduction of the unemployment rate and the increase in the employment of
the population in our country remain an urgent task of state policy.

To achieve this goal, it is necessary to perform several tasks:
 Analysis of the main parts of active programs that affect the employment of the
population in different countries of the world to combat long-term
unemployment;
 Definition of the long-term unemployment rate in Azerbaijan, its minimum level
in Russia and the EU member states;
 Justification of the implementation of forms of primary and retraining of modular
programs for long-term unemployment;
 Identification of the possibility of effective use of educational programs that
reduce the level of unemployment risk.

MATERIALS AND METHODS

Studying the income poverty indices [Deserf, B., 2021] in a framework that takes
into account two poverty lines: one absolute line that reflects the cost of living, and
one relative line that reflects social exclusion, notes that in this context, a set of basic
axioms a la Foster and Sharrock characterizes a class of hierarchical indices. This is
a class of additive indices, for which the contribution to the poverty of any person
depends on both his income and the level of income in his society, and a key feature
of hierarchical indices is to give some form of priority to absolutely poor people.
These indices always take into account that an absolutely poor individual is poorer
than an individual who is only relatively poor, regardless of the income level in their
respective societies. Classical indices are not hierarchical, except in trivial cases, and
as a result, they lead to a controversial comparison of the poverty of societies with
different income standards. With the introduction and effective use of the new form
of governance in the Somali economy, appropriate measures should be taken to
increase economic growth through the human and natural resources provided by
God, reduce poverty, and reduce its dependence on other economic indicators
[Stockhammer E., Onaran O. 2004].

42