Adygeya is one of the regions with high demographic load. The population incapable of work accounts for 22,9% of the total population, that is 1,1 % higher than all over the Northern Caucasus and Russia. Demographic situation in the Republic of Adygeya is

characterized by the negative phenomena typical of the situation in Russian Federation as a whole. The increase of the depopulation is the result of low birth-rate, the prevalence of families with 1-2 children, high death-rate. The main factor of demographic development in Adygeya is the natural diminution accounted for 2,6 thousand people in 2000. The members of died exceeded the number of born by 1,6 times.

During the years of the reforms the class of entrepreneurs and those working on the farms as well as the people busy in individual trading and service activities appeared in the republic. They account for about 21% of working population.

During the last 10 years the social portrait of unemployed rather changed. Their number was constantly growing because of the mass dismissal from the enterprises and offices.

Nevertheless the official level of unemployment in the republic tended to decrease and as compared to the levels all over the Russia it was 1,5 points less.

As on January 1, 2001 2002 unemployed were registered in the center of engagement. Percent of uneducated people increased. They accounted for only 0,9% in 1992 and 7,7% in 2000. The category of people who never worked is also increasing, being 26,3% in 1996 and 52,8 in 2000. Women constituted the majority of unemployed accounting for 75% in 2000. During the 10-year period the percent of unemployed living in towns increased from 58% in 1992 to 62% in 2000.

In 2000 Engagement Department, the Fund of the Entrepreneur-ship Support of the Republic of Adygeya, administrations of towns and districts together with the Commission on the development of small and average scale business under the President of the Republic of Adygeya patronage created more than 820 new working places mostly in food and processing industries at the expense of the republic budget and 440 working places have been reserved.

The republic special Program "Own Business" was realized with the help of which the so called self-engagement of more than 600 unemployed became available, at that 240 of them are busy in servicing sphere, cattle-breeding, rabbit-breeding, vegetable-growing etc.

The main way for the realization of activities on engagement especially of young people is the development of social works. 3000 people were engaged in them during 2000. There positive changes occurred in the financing of these works: if earlier they were paid from engagement fund by 100%, in 2000 more than 60% were paid by different enterprises and organizations.

Living standard is the main indicator characterizing economic development.

The level of cash income of the population is under the great influence of the spontaneous rise of prices of goods and services and the delays in salary payment which decrease the consuming capacity and as a result decrease the number of indigent people. In 2000 as compared to 1999 the cash income increased by 36,2% and expenses by 19,8%.

In Adygeya the cash income is constantly growing despite of the low financial flows into the Southern Area which provided for about 70% the Russian cash income level. In 2001 it was 132,1% against of the same period of 2000.

After the period of prolonged depression in 1998-99 years in 2000 the following items increased:

• real cash income by 9,8% against of the decrease by 17,0% (in 1999 against of 1998);
• real salary by 1 9,8% against of the decrease by 31,4%.

As a result the average income per capita could cover the consumer goods basket by 1,5 against of 1,1 last year.

During the recent years the number of people with cash income lower than the minimum of subsistence decreased by 2040 persons and in 2000 it was 3290 of the total population.

In 80-90 years the main source of income in Russia was wages fund accounting for 50% of total cash income volume. The reforms in the system made the income of small business activities to constitute, the great share in the formation of cash income, up to 26% in 2001.

The consistent output growth in the main industries and the indexation of wages in the budget sphere led to the increase of the wage growth target as well as its nominal value. On the average these values in 2000 against of 1999 were 149,8% and 1385 roubles (as compared to 134,4% and 925 roubles in 1998/1997 years).