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noun

human capital

HYOO-muhn KAP-i-tuhl

Human capital (noun) means the knowledge, skills, health and experience of the people in a workforce or a population, treated as an economic asset that produces value. Example: “Countries that invest in schooling build human capital that pays off for decades.”

noun
1
The knowledge, skills, health and experience of the people in a workforce or a population, treated as an economic asset that produces value.
"Countries that invest in schooling build human capital that pays off for decades."
"The merger was really a bid for the smaller firm's human capital."
2
business The employees of an organisation regarded collectively as a resource to be managed and developed.
"She heads the bank's human capital division."
"Human capital costs now exceed technology spending."

How to Use Human capital

Learner’s notes

In plain EnglishThe value of what people know and can do.

When to use it

Formal; belongs to economics, policy and corporate writing rather than everyday speech.

Memory tip

Social capital is about relationships and trust between people; human capital is about the abilities inside each person.

Easily confused with
human resources social capital intellectual property
Common pairings
invest in human capital human capital development human capital flight stock of human capital
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Fill the Gap

Can you complete this real example?

Countries that invest in schooling build _____ that pays off for decades.

workforce skills talent intellectual capital labour value personnel staff workforce human resources

Related Words

Rhymes for human capital

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Frequently Asked Questions

What is the difference between human capital and human resources?

Human resources normally means the department and the practical business of hiring, paying and managing staff. Human capital is an economic idea: the value that people's skills and knowledge themselves represent.

How do you increase human capital?

Chiefly through education, training, work experience and better health care, since all of these raise what a person can produce. Migration policy also shifts a country's human capital by attracting or losing skilled workers.

Is calling people capital insulting?

Some people find it dehumanising, because it borrows the language of machinery and money. Economists use it to argue the opposite case, that spending on people is an investment rather than a cost.

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