Labor Market Dynamics and Regional Economic Development in Azerbaijan’s Mil-Mugan Region: Challenges and Opportunities

Nowadays, the labor market plays an important role in the socio-economic life of society. The labor market assesses the cost of labor and determines the main trends in the dynamics of employment based on quantitative indicators. The main feature of the labor market is its ability to meet the demand for labor by determining the level of employment. In a market economy, increasing labor efficiency depends on the processes of education, advanced training, professional knowledge, and the acquisition of new professions. The development of the labor market is measured by the demand for new types of employment and labor. From this perspective, the article studies the dynamics of the labor market in regional socio-economic development. The article also examines the problem of the distribution of labor resources in the context of the socio-demographic development of the Mil-Mugan economic region. The interaction between the population and the economy, especially the structure and development of the labor market, plays an important role in the organization of the regional economy. Effective allocation of the population and labor force is important for ensuring economic development and social equality. The article examines the fact that the allocation and use of labor resources have been gaining importance in the economic development of Azerbaijan since the 20th century. It is noted that economic and social development has occurred at different rates in the Mil-Mugan economic region, especially in the Beylagan, Imishli, Saatli, and Sabirabad districts. Agriculture is the main economic activity in these regions, which limits the development of industry and services. There are significant differences between the employment rate, the unemployment rate, and the wage rate due to these factors. The development of the labor market is associated with regional policy and state intervention, as these measures aim to ensure the efficient use of local resources, the creation of jobs, and the strengthening of social equality. The role of the state and the promotion of regional development are of particular importance for increasing the employment rate and reducing unemployment. From this point of view, the article examines the territorial organization of the economy of the Mil-Mugan economic region, the structure of its labor force and employment, and the distribution of the population by economic sectors.