The article elucidates the reasons causing living standard reduction. Economy reforms conducted under the conditions of market transformation of economy resulted in steep decrease of working places, unemployment growth, rise of prices and reduction of population`s living standard; all these negative factors being perceivable especially at the initial stage. As the authors deem, these are low engagement level of population and limitation of working places that account for living standard reduction. This problem became one of major contradictions of the transitional period. It is the development of productive potential aimed at accretion of working places that plays the main role in a settlement of this contradiction. A solution of population`s engagement problem can serve as a basic provision concerned with elevation of living standard and overcoming of economic crisis.
living standard, poverty, market transformation of economy, economy reforms, inflation, engagement
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