Azerbaijani graduates are struggling to find suitable jobs

Azerbaijan now produces more college graduates than its own economy can absorb. For thousands of young people, this means choosing between jobs below their qualifications, alleged bribery payments for public sector positions, or emigration. Economists and graduates have pointed this out in interviews with local media.

This trend reveals a structural weakness in the Azerbaijani economy. In recent years, only about 9,000 to 12,000 new jobs have been created annually, more than half of them related to the reconstruction of the Karabakh region. At the same time, more than 50 percent of university graduates hold degrees in the humanities. The result is an inflation of academic qualifications and an increasing misallocation of human capital.

Jobs Only Through Connections?

A graduate of the Azerbaijan University of Architecture and Construction reported that after earning his degree in water management and technical communication systems, he was unable to find employment at Azərsu.

“I was told there were no open positions,” the graduate said. “At the same time, I was told that the problem could be solved if I had relatives or acquaintances in the ministry—or was willing to pay a certain amount.”

Today, he works as a registrar at a hospital and earns 400 manat a month.

Another graduate described a similar situation in Sumqayıt. There, he said, many wages are below the legal minimum wage, and labor law violations are widespread. Personal connections are often crucial for career opportunities in the public sector. Without connections, applicants are merely “kept in reserve,” he said.

A third college graduate explained that he had turned down several job offers because the salaries were too low and was now looking for study and work opportunities abroad.

“There aren’t enough alternatives for young people domestically,” he said.

Academic Inflation in the Labor Market

Araz Aliyev, a former lecturer and researcher at Baku State University, sees the core problem as academic inflation. The more people who earn a college degree, the lower its actual value becomes on the job market.

“More and more college graduates are working as cashiers, delivery drivers, or salespeople,” he said. “When two people apply for a retail position—one with a high school diploma and one with a college degree—the employer usually chooses the college graduate. This completely pushes the other person out of the job market.”

Aliyev points out that since 2020, more than half of all newly created jobs have been in the construction industry, even though the majority of college graduates hold degrees in the humanities.

“In the end, a history student ends up on a construction site. That is precisely the discrepancy we are facing,” he said.

Experts Call for Structural Reforms

Economist Rovshan Agayev warns, however, against placing the blame solely on universities. Ultimately, he argues, it is economic demand that is decisive.

“The economy determines what kind of graduates it needs, and universities respond to that,” he said. “If competitive high-tech jobs emerge that require highly qualified specialists, the educational offerings will also change accordingly.”

The problem of unemployment among college graduates has been discussed within the government for years. However, real change is only possible through comprehensive economic structural reforms—not solely through changes in the education system.

The education system is also coming under criticism

A similar problem affects the vocational training sector. Education expert Mazahir Mammadli explained that universities have so far struggled to adapt to the new demands of the labor market.

“University graduates no longer have a decisive advantage in the labor market,” he said. “In many cases, colleges serve merely as a transitional phase for students who later wish to transfer to a university without an entrance exam.”

Mammadli therefore proposes formally integrating colleges into the university system and expanding them as a preparatory stage for bachelor’s degree programs. This would allow students to earn a recognized degree after just two or three years and enter the labor market sooner.

Low Wages Despite a Degree

The problems don’t end with entering the workforce. One college graduate reported earning 600 to 700 manat per month but being officially registered as earning only 350 to 400 manat. Employers would deliberately underreport salaries to save on social security contributions.

For many young workers, this has long-term consequences: despite their academic training and already comparatively low wages, their pension entitlements accumulate much more slowly.

The “Graduate Employment Rating” in Azerbaijan, published since 2018, shows that university graduates work disproportionately often in retail, as cashiers, or in the service sector—a finding that confirms the statements of graduates and experts.