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The interconnection between labour productivity and real wages in Azerbaijan

The presented article analyses the interconnection between real wages and labor productivity in Azerbaijan in 19 types of economic activity, as well as in the sub-sectors of the manufacturing in the period of 2010–2019. In general, the average annual growth rate of labor productivity in the economy, including mining, construction, professional scientific and technical activities, and entertainment and recreation activities (2010–2019) was negative. The average growth rate of real wages was negative in the construction and activities of administrative and support services. Simultaneously, the average annual growth rates of real wages were compared with labor productivity, and it was determined that the growth rate of labor productivity is approximately proportional to the growth rate of real wages. However, in 2019 real wages exceeded labor productivity which was due to the simultaneous increase in the minimum wage of the country in 2019.