Components and Impact of Human Resources Development for Economic Growth

Components and Impact of Human Resources Development for Economic Growth

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Amartya Sen has said, “Economic Growth without investment in human development is unsustainable and unethical.” The noted economist is right when he says this because both for developing and developed nations, it is the human resource that is the driving force of the growth that is required for the country. The following points will help to perceive the effects of human resource development on the growth of an economy.

• The level of economic growth is largely determined by the quality of the population.

• As a result, it is highly desirable to invest in human capital through educational, medical, and other social programs.

• Human resource development boosts people's knowledge, abilities, and capabilities, resulting in innovation, rise in productivity, and expansion of the economy.

• In order to retain existing talent and attract new talent, regions must improve their living conditions—or quality of life—because workers can move between locations.

• As the mix of skills and occupations becomes increasingly important to the economic well-being of regions, quality of life factors are increasingly influencing economic development.

• There is a positive correlation between economic expansion and human capital because investment tends to increase productivity.

• The rate of economic growth, which is driven by consumer spending and business investment, determines the quantity of skilled labor that is required.

• In economies all over the world, investing in workers has a proven track record of improving employment conditions.

Measures Taken to Ensure Economic Growth

• In order to achieve economic growth, a nation's human resources must be sufficient and equipped with the required skills and abilities.

• When it comes to increasing a nation's population's level of education and skill, governments play a crucial role.

• By providing citizens with free higher education, some governments are actively contributing to the improvement of human capital.

• These governments are aware that the knowledge acquired through education contributes to the growth and development of an economy.

• Workers with more education or better skills typically earn more, which drives consumer spending and boosts economic growth.

• To boost profits and productivity, businesses also invest in human capital.

• Education of a workforce is a type of investment, but it is an investment in human capital rather than equipment.

In economies all over the world, investing in workers has been shown to improve employment conditions. Businesses see an increase in both revenue and investment as a direct result of an improvement in the labor market. Consequently, employment is a crucial metric for predicting GDP growth.