Subject To accelerate the economic recovery after recession, a long-term strategy is required to improve economic efficiency and competitiveness. A new growth paradigm is needed, based on productivity rather than on a favorable commodity market environment. Objectives Economic growth is achievable through extensive and intensive sources. Priority of choosing the second way sets tasks in the field of productivity growth, renewal of production and management technologies, sufficient financing of science. The task of improving the quality of education, expanding the opportunities of retraining, acquiring modern competencies is especially acute. Methods The paper employs principles and methods of research, like abstraction, analysis and synthesis, grouping and comparison, analogy, and modeling. Results We analyze reasons for a decrease in labor productivity, prove the correlation between the labor productivity, remuneration and economic growth. The paper shows the need for an urgent increase in labor productivity to restore the leading positions in the world. Conclusions The need to comply with economic laws needs no proof, and ignoring the methodological background in the field of manpower productivity has resulted in crisis phenomena and stagnation. Extension of retirement age being an extensive way of increasing the produced commodity mass demonstrates a rejection of intensive factors of production development.
Keywords: labor productivity, remuneration, living standards, life quality, economic growth
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