Human Capital Index

Human capital is defined as the knowledge, skills, competencies and other attributes embodied in individuals. In a country the human capital of their population can be a more important determinant of its long term economic success than other resources. Human capital is productive wealth embodied in labour, skills and knowledge.

The Human Capital Index quantifies how countries are developing and deploying their human capital and tracks progress over time. This Report provides comprehensive information on the talent base in each country, including information on education levels of the employed, unemployed and the inactive members of the population. Therefore governments must advocate strongly for increased investments in human capital.

This index seeks signalize real situation of education, employment , demographic trends and untapped talent pools.

A nation’s human capital endowment 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.

The World Economic Forum’s Human Capital Report explores the factors contributing to the development of a healthy, educated and productive labour force. This metric assesses the education and skills of both the active and inactive population.

The Human Capital Index provides country rankings that allow for effective comparisons across regions and income groups. The methodology behind the rankings is intended to serve as a basis for time-series analysis that allows countries to track progress, relative to their own performance as well as that of others.

Methodology

The Human Capital Index ranks 124 countries on how well they are developing and deploying their human capital, focusing on education, skills and employment. It aims to understand whether countries are wasting or leveraging their human potential. The report measures this distance from the ideal – or waste – by disaggregating data across five age groups to capture the full demographic profile of a country:

• 15-24 years, for whom factors such as higher education and skills use in the workplace are assessed.
• 25-55 years, the bulk of the labour force, for whom continued learning and employment opportunities are assessed.
• 55-64 years, the most senior members of most workforce for whom attainment and employment opportunities are assessed.
• 65 and over years, the oldest members of the population, for whom both continued opportunity and health are assessed.

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