People, population and community
ONS has today (1 Oct) released updated estimates of the value of human capital.
The stock of human capital accounts for what skills people have and how much they earn and what qualifications they have, as well as estimating how much longer they will continue to work.
As such, the value of human capital is often higher in younger workers, which have more years in the labour market ahead of them.
In cash terms the stock of human capital in the UK grew 1.8%. However, once the effects of inflation were removed human capital actually fell by 0.8%. This was the first fall in human capital stocks since 2012, reflecting slower growth in earnings relative to inflation.
In 2017, the UK's ‘real’ full human capital stock was £20.4 trillion, more than 10 times the size of UK GDP.
The article also highlights that in 2004 the pay premium for obtaining a degree was 41% but by 2017 this had fallen to 24%.
In addition, the article shows that between 2011 to 2017 the average stock of individuals over 35 grew by 7.0%, while the stock of those between 16 and 35 only grew by 3.6%.