20.12.11
Human capital stock falling
The UK’s ‘human capital’ stock fell by £130bn in 2010, according to new estimates from the Office for National Statistics (ONS).
Human capital refers to the economic value of knowledge and skills of the UK’s working age population.
In 2010, this stock was worth an estimated £17.12 trillion; two and a half times more than the value of tangible assets, such as buildings and machinery. Any activity that adds to this can be viewed as an investment, the ONS suggests, including both informal and formal learning.
These statistics are part of a programme to measure the national well-being, and show that while human capital increased steadily from 2001 to 2007, it then slowed and started to fall in 2010.
The report says: “Human capital is recognised as having important economic impacts suggests that countries with higher levels of human capital, other things being equal, have greater potential output and income in the future.
“The measures can also be used in the assessment of the impact of an ageing population, changes in retirement ages and in the evaluation of the economic benefits of different levels of education.”
To view the report, visit www.ons.gov.uk/ons/dcp171766_248886.pdf
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