The Effect of Current Financial Crisis on the Labor Market: Case of Azerbaijan
The current financial crisis is considered the most severe and lasting in the history of economics. Indeed, its impact is way beyond the scope of its origin. Not only it is a challenge to fight it but also it is still an open question how to estimate its impact on the global economy or specific countries and what policy conclusions to draw for the future. For this matter Azerbaijan is a special case since for already more than a decade Azerbaijan is experiencing very noticeable GDP growth. Only during the crisis the growth rate of GDP slowed down but still did not experience a negative rate, which indeed was a case in some countries like Mexico (Verick 2009). Azerbaijan has been very much dependant on oil revenues and it is crucial to estimate the effect of the current crisis on Azerbaijan when the oil prices had a big downturn. Nevertheless, despite the worldwide global financial crisis and the fall in international oil prices from 2008 highs, Azerbaijan’s economy sustained a strong growth of 9.3% in 2009 (Asian Development Bank and Azerbaijan 2009).