The Human Capital Index

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The Human Capital Index INTRODUCTION A nation’s human capital endowment—the skills and capacities that reside in people and that are put to productive use—can be a more important determinant of its long term economic success than virtually any other resource. This resource must be invested in and leveraged efficiently in order for it to generate returns, for the individuals involved as well as an economy as a whole. Additionally, despite high unemployment in many countries, the global economy is entering an era of talent scarcity that, if left unaddressed, will hinder economic growth worldwide. Understanding and addressing challenges related to human capital is thus fundamental to short term stability as well as the long term growth, prosperity and competitiveness of nations. The Human Capital Index explores the contributors and inhibitors to the development and deployment of a healthy, educated and productive labour force, and has generated the information contained in this Report. The Index provides country rankings that allow for effective comparisons across regions and income groups. The methodology and quantitative analysis behind the rankings are intended to serve as a basis for designing effective measures for workforce planning. While the rankings are designed to create greater awareness among a global audience, the Index also seeks to serve as a basis for dialogue and action by leaders at the World Economic Forum to increase public–private collaboration on developing human capital. MEASURING HUMAN CAPITAL The Human Capital Index is a new measure for capturing and tracking the state of human capital development around the world. It has three key features. First, the Index measures a broader set of indicators than the traditional definitions of human capital. Human capital is not a one–dimensional concept, but means different things to
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