President Ilham Aliyev’s Decree approving the “2026–2030 Action Plan for the Implementation of the Employment Strategy” defines the next five-year phase of employment policy in the country. According to the Decree, the monitoring and evaluation of the implementation of the Action Plan will be carried out by the Center for Analysis of Economic Reforms and Communication (CAERC). The new document is not a separate initiative from the 2020–2025 Action Plan, but a logical continuation of the policy and institutional framework established during the previous phase.

Elnur Alakbarov, Head of the Economic Analysis Division at the Center for Analysis of Economic Reforms and Communication (CAERC), stated that the previous Action Plan identified the improvement of the labor market’s legal and institutional foundations, the development of workforce skills, the expansion of active employment programs, social dialogue, the reduction of informal employment, and monitoring and forecasting as key priorities. In the new plan, these areas have been further developed on the basis of more concrete mechanisms, target groups, and outcomes. At the same time, employment-oriented economic development and support for micro, small, and medium-sized enterprises (MSMEs) have been included in the document as separate priorities.

The new Action Plan covers 50 measures across six priority areas. In the new phase, greater emphasis has been placed on the objectives of the measures and their linkage to specific outcomes rather than on the number of measures themselves. The identification of initial, intermediate, and final results for the measures forms a results chain that enables the consistent monitoring of the expected changes arising from the activities.

According to Elnur Alakbarov, defining employment-oriented economic development as a separate priority demonstrates that employment policy is being approached from a broader economic perspective. Stimulating investment and startup activity in the regions, supporting MSMEs, introducing modern technologies in the agricultural sector, and developing tourism are all aimed at expanding demand for labor. Thus, employment policy encompasses not only the employment of unemployed and job-seeking individuals but also the development of an economic environment in which productive and sustainable jobs are created.

In the Action Plan, digitalization emerges as one of the main management tools of the employment system in the new phase. The digitalization of employment services, the creation of artificial intelligence-based services, automated monitoring mechanisms, the expansion of regional DOST infrastructure, and the establishment of regional vocational training centers will increase the efficiency and accessibility of services.

Measures related to skills development also continue the general directions of the previous phase through more concrete instruments. The creation of an “Electronic Atlas of Occupations,” the updating of occupational and qualification standards, the development of skills required for the green economy, the expansion of dual vocational education, workplace learning, and the recognition of non-formal skills will strengthen the links between education and the labor market. These measures are intended to prepare the workforce not only for current vacancies but also in line with the future development directions of the economy.

The new Action Plan also demonstrates a clearer focus on the targeting of active employment programs. Women, young people, graduates of state childcare institutions, and other individuals facing difficulties in finding employment are considered not as a single group but as target groups with distinct needs. In this regard, encouraging participants of the self-employment program to operate as formal business entities is particularly noteworthy. The objective is not only to involve individuals in the program but also to transform their activities into sustainable businesses and formal employment.

Measures related to labor market monitoring and forecasting are among the more targeted directions of the new plan. Annual surveys to identify employers’ demand for occupations and skills, monitoring graduates’ transition into the labor market, assessing the impact of minimum wage increases, and forecasting labor mobility will facilitate evidence-based decision-making. This approach will make it possible not only to monitor changes in the labor market but also to identify future demand in advance.

The CAERC division head added that the 2026–2030 Action Plan preserves the institutional and policy framework established during the previous phase while moving employment policy into a more targeted, digital, and results-oriented stage. The implementation of the Plan will contribute to the expansion of formal and productive employment, improve the alignment between skills and jobs, increase employment opportunities in the regions, and strengthen forecasting-based approaches to labor market governance.