Measuring and Comparing Human Capital investing in development and growth Philipp Schuller Co-Director European Human Capital Project Lisbon Council Building a European VET Area April 2007, Cedefop

Human Capital Endowment per Employed Person , , , , , , , ,000 United States Canada Ireland Belgium Finland Germany Netherlands FranceAustria Italy Spain Portugal iappp$ (base 2000) Parent Denmark United Kingdom Sweden SchoolingTertiaryAdultOn the Job

Human Capital Utilization (Employed/Total)

Human Capital Productivity (CS GDP/HC Stock) iappp$ (base 2000)

Policy Impact  Europe has a human capital gap – in 2020 we will need 30% more human capital to meet global growth rates of 4-5% p.a.  Human capital investment and management differ widely across Europe: countries on the periphery are in the lead leaving the traditional heavyweights behind.  The leader countries show that high investment and good management of human capital are compatible with the European social model.  Europe's hope are not the young but the old: more than 50% of human capital stems from adult education and learning on the job.  Growth comes from investing not cost cutting – this is as true for human capital investing as for financial investing