Page 105 - Azerbaijan State University of Economics

Fettouche Fatma: Influence of Human Capital On Employment In China Standard
Analytical Study

LITTERATURE REVIEW
Human capital is an essential element of economic growth, functioning as a factor of
production in the generation of goods and services. Human capital functions as a
dynamic component with macroeconomic significance, affecting production and
many relationships. Florida, Mellander, and Stolarik (2008) He emphasised that
human capital affects production, consumption, and goods, and is essential for wages
and labour productivity is a crucial component in the industrial process.

The labor market is intricately connected to human capital, as incomes depend on
investments in human capital, which are determined by the person and influenced by
their productivity. Understanding that human capital depends on a person's capacity
to fulfill labor market requirements requirements suggests that investing time in
human capital development through education, training programs, and related
activities is a wise future investment (Giziene & Simanaviciene). Development
requires several components to achieve its objectives, including people and material
capital, natural resources, and energy, all of which impact Serwa's economic growth.
Human capital development has a systematic program designed for skill learning to
meet labour market requirements (Braunerhjelm & Lappi, 2023). He stated that
human capital, similar to other kinds of capital, may augment the productive process
through investment in human capital. He contended that human capital, in its
traditional interpretation, comprised acquired skills rather than just a workforce.

Since the 18th century, economists such as Adam Smith, Marx, Marshall, and Malthus
have emphasised the importance of human capital through education and
demographic composition. Nonetheless, a rigorous and pragmatic examination of
these notions has only arisen during the 1950s, as illustrated by Alfred Marshall's
insights in 1920. Concerning The significance of education as a national investment.
it is asserted that Optimal utilization of the human component is both the most
expensive and essential. Schultz (1962) asserts that the improvement of agricultural
output in different countries is not due to land reclamation or material resources, but
rather to the learning of new skills and knowledge by humans. Thus, prioritising the
development of skills via education and health via government funding is essential for
the enhancement of human capital. Conversely, other indicators represent human
capital, including educational and health measurements.

Obtaining job that corresponds with an individual's skills is a significant difficulty.
China, similar to any nation addressing unemployment challenges, As per the World
Bank's study, the workforce participation rate 57.51% in 2021, up from 56.32% in
2020 and 57.41% in 2021. In 2022, China's unemployment rate was 4.98%, indicating
an increase of 0.43% from 2021.

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