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Definition of 'Human Capital'
A measure of the economic value of an employee's skill set. This measure builds on the basic production input of labor measure where all labor is thought to be equal. The concept of human capital recognizes that not all labor is equal and that the quality of employees can be improved by investing in them. The education, experience and abilities of an employee have an economic value for employers and for the economy as a whole.
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Investopedia explains 'Human Capital'
Economist Theodore Schultz invented the term in the 1960s to reflect the value of our human capacities. He believed human capital was like any other type of capital; it could be invested in through education, training and enhanced benefits that will lead to an improvement in the quality and level of production.
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The skills and knowledge that allow you to make money are your best asset. Remember to invest in yourself!
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Intangible assets don't appear on balance sheets, but they're crucial to judging a company's value.
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This widely watched indicator of economic well-being also directly influences the market.
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