Tovuz District, situated in the western part of the Republic of Azerbaijan, holds a strategically important position in the country’s interregional economic and transportation networks. Within this dis-trict, the town of Govlar has experienced substantial development over the past decades, particularly with regard to urbanization processes and dynamic population growth. This study seeks to conduct a comprehensive analysis of Govlar’s socio-economic conditions, with a primary focus on demographic patterns, labour resources, and their structural composition. The findings highlight the critical role of ag-riculture, which remains the dominant employment sector, complemented by growing service and indus-trial sectors. Additionally, the study examines the impacts of infrastructural improvements, educational institutions, and vocational training centers on enhancing the quality and stability of the local labour market. Emphasis is placed on identifying current challenges such as seasonal unemployment, infra-structure constraints, and demographic shifts, while also proposing recommendations for sustainable urban planning and socio-economic development. The research concludes that further state and private sector collaboration, coupled with the strategic engagement of international donor organizations, could significantly accelerate Govlar’s regional development and improve overall living standards for its resi-dents.