The influence of demographic processes on the formation and effective use of human capital in the context of regional economy

The purpose of this study was to identify existing problems in the utilisation of human capital in urban and rural regions of Azerbaijan. For this purpose, demographic data for 2000-2024 were analysed, and experts in the field of human resource management and human capital development were interviewed. As part of the research, a comprehensive analysis of human capital and demographic processes in Azerbaijan was carried out. Concepts related to demographic transition and human capital accumulation were considered, which made it possible to reveal the importance of quality educational programmes, decent pay and attractive conditions in periods of change in the age structure of the population. According to the survey data, 30% of respondents from rural areas pointed to the shortage of skilled labour, which might have affected technological innovation and economic growth rates in the regions. Urban respondents also confirmed this trend, with 35% noting difficulties in finding specialists with the required skills. In addition, it was revealed that the share of elderly people (over 60 years old) in the population structure tended to reach 15%, which posed new challenges for the social protection system. To overcome the negative consequences of population ageing, the need to develop mechanisms to engage the older generation in economic activity was justified. It was analysed how infrastructure constraints, public policies and urbanisation affected the professional mobility and competitiveness of workers; the results showed that with proper support from public institutions and employers, as well as the involvement of educational institutions in the constant updating of curricula, it was possible to mitigate the negative effects of population ageing and the shortage of qualified specialists. The research showed that maximising the economic potential of regions in the conditions of accelerated population ageing and migration processes required the interaction of state institutions, business and educational organisations