write an essay on human capital

What Is Human Capital? Definition and Examples

• U.S. Economy
• Supply & Demand
• Archaeology
• B.S., Texas A&M University

In its most basic sense, “human capital” refers to the group of people who work for or are qualified to work for an organization—the “workforce.” In a larger sense, the various elements needed to create an adequate supply of available labor form the basis of human capital theory and are critical to the economic and social health of the world’s nations.

Key Takeaways: Human Capital

• Human capital is the sum of knowledge, skills, experience and social qualities that contribute to a person’s ability to perform work in a manner that produces economic value
• Both employers and employees make substantial investments in the development of human capital
• Human capital theory is an effort to quantify the true value of an investment in human capital and is closely related to the field of human resources
• Education and health are key qualities that improve human capital and also directly contribute to economic growth
• The concept of human capital can be traced back to the 18th-century writings of Scottish economist and philosopher Adam Smith

Human Capital Definition

In economics, “capital” refers to all of the assets a business needs to produce the goods and services it sells. In this sense, capital includes equipment, land, buildings, money, and, of course, people—human capital.

In a deeper sense, however, human capital is more than simply the physical labor of the people who work for an organization. It is the entire set of intangible qualities those people bring to the organization that might help it succeed. A few of these include education, skill, experience, creativity, personality, good health, and moral character.

In the long run, when employers and employees make a shared investment in the development of human capital, not only do organizations, their employees, and clientele benefit, but so does society at large. For example, few undereducated societies thrive in the new global economy .

For employers, investing in human capital involves commitments like worker training, apprenticeship programs , educational bonuses and benefits, family assistance, and funding college scholarships. For employees, obtaining an education is the most obvious investment in human capital. Neither employers nor employees have any assurances that their investments in human capital will pay off. For example, even people with college degrees struggle to get jobs during an economic depression, and employers might train employees, only to see them hired away by another company.

Ultimately, the level of investment in human capital is directly related to both economic and societal health.

Human Capital Theory

Human capital theory holds that it is possible to quantify the value of these investments to employees, employers, and society as a whole. According to human capital theory, an adequate investment in people will result in a growing economy. For example, some countries offer their people a free college education out of a realization that a more highly educated populace tends to earn more and spend more, thus stimulating the economy. In the field of business administration, human capital theory is an extension of human resources management.

The idea of human capital theory is often credited to the “founding father of economics” Adam Smith , who in 1776, called it “the acquired and useful abilities of all the inhabitants or members of the society.” Smith suggested that differences in wages paid were based on the relative ease or difficulty of doing the jobs involved. 

Marxist Theory

In 1859, Prussian philosopher Karl Marx , calling it “labor power,” suggested the idea of human capital by asserting that in capitalist systems , people sell their labor power—human capital—in return for income. In contrast to Smith and other earlier economists, Marx pointed to “two disagreeably frustrating facts” about human capital theory:

• Workers must actually work—apply their minds and bodies—in order to earn income. The mere ability to do a job is not the same as actually doing it.
• Workers cannot “sell” their human capital as they might sell their homes or land. Instead, they enter into mutually beneficial contracts with employers to use their skills in return for wages, much in the same way farmers sell their crops.

Marx further argued that in order for this human capital contract to work, employers must realize a net profit. In other words, workers must do work at a level above-and-beyond that needed to simply maintain their potential labor power. When, for example, labor costs exceed revenue, the human capital contract is failing.

In addition, Marx explained the difference between human capital and enslavement. Unlike free workers, enslaved people—human capital—can be sold, although they do not earn incomes themselves.

Modern Theory

Today, human capital theory is often further dissected in order to quantify components known as “intangibles” such as cultural capital, social capital, and intellectual capital.

Cultural Capital

Cultural capital is the combination of knowledge and intellectual skills that enhance a person’s ability to achieve a higher social status or to do economically useful work. In an economic sense, advanced education, job-specific training, and innate talents are typical ways in which people build cultural capital in anticipation of earning higher wages.   

Social Capital

Social capital refers to beneficial social relationships developed over time such as a company’s goodwill and brand recognition, key elements of sensory psychological marketing . Social capital is distinct from human assets like fame or charisma, which cannot be taught or transferred to others in the way skills and knowledge can.

Intellectual Capital

Intellectual capital is the highly intangible value of the sum of everything everybody in a business knows that gives the business a competitive advantage. One common example is the intellectual property—creations of the workers’ minds, like inventions, and works of art and literature. Unlike the human capital assets of skill and education, intellectual capital remains with the company even after the workers have left, typically protected by patent and copyright laws and non-disclosure agreements signed by employees.

Human Capital in Today's World Economy

As history and experience have shown, economic progress is the key to raising the standard of living and dignity of people worldwide, especially for people living in impoverished and developing countries.

The qualities that contribute to human capital, particularly education and health—also directly contribute to economic growth. Countries that suffer from limited or unequal access to health or educational resources also suffer from depressed economies.

As in the United States, the countries with the most successful economies have continued to increase their investments in higher education, while still seeing a steady increase in the starting salary of college graduates. Indeed, the first step most developing countries take to advance is to improve the health and education of their people. Since the end of World War II, the Asian nations of Japan, South Korea, and China have used this strategy to eliminate poverty and become some of the world’s most powerful players in the global economy. 

Hoping to emphasize the importance of education and health resources, the World Bank publishes an annual Human Capital Index Map demonstrating how access to education and health resources affect the productivity, prosperity, and quality of life in nations worldwide.

In October 2018, Jim Yong Kim, president of the World Bank, warned, “In countries with the lowest human capital investments today, our analysis suggests that the workforce of the future will only be one-third to one-half as productive as it could be if people enjoyed full health and received a high-quality education.”

Sources and References

• Goldin, Claudia (2014). Human Capital , Department of Economics, Harvard University and National Bureau of Economic Research.
• Smith, Adam (1776). An Inquiry into the Nature and Causes of the Wealth of Nations . Copyright 2007 MetaLibre.
• Marx, Karl. The Buying and Selling of Labour-Power: Chapter 6 . marxists.org
• World Development Report 2019: The Changing Nature of Work . World Bank
• What Is Cultural Capital? Do I Have It?
• The Critical View on Global Capitalism
• The Differences Between Communism and Socialism
• Should I Earn a Human Resources Degree?
• What Is Capital Deepening?
• How Your Employer Can Pay for Your Education
• What Is Convergence Theory?
• All About Marxist Sociology
• Business Administration Education and Careers
• Growing Industries to Consider If You're Going Back to School
• The Three Historic Phases of Capitalism and How They Differ
• The 5 Sectors of the Economy
• Sociology of Work and Industry
• Black Women Are the Most Educated Group in the U.S.
• How Sociology Can Prepare You for a Career in Business
• Introduction to Sociology

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What Is Human Capital?

Understanding human capital, special considerations.

• Human Capital FAQs

The Bottom Line

Human capital definition: types, examples, and relationship to the economy.

Thomas J Catalano is a CFP and Registered Investment Adviser with the state of South Carolina, where he launched his own financial advisory firm in 2018. Thomas' experience gives him expertise in a variety of areas including investments, retirement, insurance, and financial planning.

Investopedia / Ellen Lindner

The term human capital refers to the economic value of a worker's experience and skills. Human capital includes assets like education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.

As such, it is an intangible asset or quality that isn't (and can't be) listed on a company's balance sheet . Human capital is perceived to increase productivity and thus profitability. The more investment a company makes in its employees, the chances of its productivity and success become higher.

Key Takeaways

• Human capital is an intangible asset not listed on a company's balance sheet.
• Human capital is said to include qualities like an employee's experience and skills.
• Since all labor is not considered equal, employers can improve human capital by investing in the training, education, and benefits of their employees.
• Human capital is perceived to have a relationship with economic growth, productivity, and profitability.
• Like any other asset, human capital has the ability to depreciate through long periods of unemployment, and the inability to keep up with technology and innovation.

An organization is often said to only be as good as its people from the top down, which is why human capital is so important to a company. It is typically managed by an organization's human resources (HR) department, which oversees workforce acquisition, management, and optimization. Its other directives include workforce planning and strategy, recruitment , employee training and development, and reporting and analytics.

The concept of human capital recognizes that not all labor is equal. But employers can improve the quality of that capital by investing in employees. This can be done through the education, experience, and abilities of employees. All of this has great economic value for employers and for the economy as a whole.

Since human capital is based on the investment of employee skills and knowledge through education, these investments in human capital can be easily calculated. HR managers can calculate the total profits before and after any investments are made. Any return on investment (ROI) of human capital can be calculated by dividing the company’s total profits by its overall investments in human capital.

For example, if Company X invests $2 million into its human capital and has a total profit of $15 million, managers can compare the ROI of its human capital year-over-year (YOY) in order to track how profit is improving and whether it has a relationship to the human capital investments.

Human capital tends to migrate, especially in global economies. That's why there is often a shift from developing places or rural areas to more developed and urban areas. Some economists have dubbed this a brain drain or human capital flight. This describes the process that keeps certain areas underdeveloped while others become even more developed.

Human Capital and Economic Growth

There is a strong relationship between human capital and economic growth , which is why it can help boost the economy. That's because people come with a diverse set of skills and knowledge. This relationship can be measured by how much investment goes into people’s education.

Some governments recognize that this relationship between human capital and the economy exists, and so they provide higher education at little or no cost. People who participate in the workforce with higher education will often have larger salaries, which means they can spend more.

Does Human Capital Depreciate?

Like anything else, human capital is not immune to depreciation . This is often measured in wages or the ability to stay in the workforce. The most common ways human capital can depreciate are through unemployment, injury, mental decline, or the inability to keep up with innovation.

Consider an employee who has a specialized skill. If they go through a long period of unemployment , they may be unable to keep these levels of specialization. That's because their skills may no longer be in demand when they finally reenter the workforce.

An individual's human capital may depreciate if they can't or won't adopt new technology or techniques. Conversely, the human capital of someone who does adopt them will.

History of Human Capital

The idea of human capital can be traced back to the 18th century. Adam Smith referred to the concept in his book An Inquiry into the Nature and Causes of the Wealth of Nations, in which he explored the wealth , knowledge, training, talents, and experiences of a nation. Adams suggested that improving human capital through training and education leads to a more profitable enterprise, which adds to the collective wealth of society. According to Smith, that makes it a win for everyone.

In more recent times, the term was used to describe the labor required to produce manufactured goods. But the most modern theory was used by several different economists including Gary Becker and Theodore Schultz , who invented the term in the 1960s to reflect the value of human capacities.

Schultz believed human capital was like any other form of capital to improve the quality and level of production . This would require an investment in the education, training, and enhanced benefits of an organization's employees.

Criticism of Human Capital Theories

The theory of human capital has received a lot of criticism from many people who work in education and training. In the 1960s, the theory was attacked primarily because it legitimized bourgeois individualism, which was seen as selfish and exploitative. The bourgeois class of people included those of the middle class who were believed to exploit those of the working class. The theory was also believed to blame people for any defects that happened in the system and of making capitalists out of workers.

What Are Examples of Human Capital?

Examples of human capital include communication skills, education, technical skills, creativity, experience, problem-solving skills, mental health, and personal resilience.

What Is the Relationship Between Human Capital and the Economy?

Human capital allows an economy to grow. When human capital increases in areas such as science, education, and management, it leads to increases in innovation, social well-being, equality, increased productivity, improved rates of participation, all of which contribute to economic growth. Increases in economic growth tend to improve the quality of life for a population.

How Can I Increase My Human Capital?

Ways to increase your own human capital include more education, automating finances to improve efficiency, expanding your horizons outside of your social and workplaces, obtaining more experience, increasing participation in a multitude of activities or organizations, improving your communication skills, improving your health, and expanding your network.

What Is Human Capital Risk?

Human capital risk refers to the gap between the human capital requirements of a company or organization and the existing human capital of its workforce. This gap can lead a company towards inefficiencies, inability to achieve its goals, a poor reputation, fraud, financial loss, and eventual closure. To reduce and eliminate human capital risk, an organization should train, foster, and support its workforce.

Human capital refers to the economic value of a worker's abilities and skills. Companies can enhance their human capital through recruitment or training, as well as by implementing management techniques that optimize the productivity of their existing workers. Maintaining and improving the value of human capital is usually the role of a company's HR department.

World Bank. " Building Human Capital ."

Scholars at Harvard. " Human Capital ," Page 1.

Schultz, Theodore W. " Investment in Human Capital ." The American Economic Review, vol. 51, no. 1, 1961, pp. 1-17.

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Home — Essay Samples — Economics — Economy — The Meaning and Concept of Human Capital

The Meaning and Concept of Human Capital

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Published: Sep 19, 2019

Words: 1201 | Pages: 3 | 7 min read

Table of contents

Introduction, the meaning of human capital, concept of human capital.

• Firstly, in Pakistan, there are so many branches of NBP for research, but we have just one city’s branches; for case study. So, it was difficult to collect complete data and finds its accuracy.
• Secondly the work overload and short time during the final year’s last semester, researcher had to do a lot of academic work such as write-up of internship report, preparation of viva exams, presentations, midterms, assignment etc. and in this short time I had to finish all the work which apparently affected thesis work.

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Performance through people: Transforming human capital into competitive advantage

At a glance.

• When companies emphasize skill development, it pays off for workers. Skills learned on the job contribute 46 percent of the average person’s lifetime earnings, and companies that build human capital are more likely to propel their employees into higher earnings brackets over the course of a career.
• Building human capital also pays off for firms in the form of more consistent earnings and greater resilience during crisis. In addition to being more consistent than their sector peers, human capital builders are better at retaining talent, with attrition rates that are about 5 percentage points lower.
• Some firms (“People + Performance Winners”) prioritize developing their employees and manage to deliver top-tier profitability at the same time. These companies are more likely to become large-scale “superstars.” They exist in all sectors and average more than $1 billion in economic profit.
• People + Performance Winners have a distinctive organizational signature that challenges and empowers employees while fostering bottom-up innovation. This form of organizational capital contrasts with that of other top-performing firms, which tend to be more top-down and transactional. This management style seems to activate human capital and create a tangible competitive advantage.

MGI’s previous research has shown that human capital development pays off for workers , with skills learned on the job accounting for almost half of the average person’s lifetime earnings. But does investing in people actually benefit companies? Most business leaders agree that it’s the right thing to do. But they are less clear on how those efforts relate to the bottom line—and why some organizations are so much more effective than others at turning human capital into a real competitive advantage.

To explore these questions, we analyze 1,800 large companies across sectors in 15 countries, sorting them based on two factors: how much they focus on developing human capital and whether they financially outperform their sector peers.

One subset in particular stands out: People + Performance Winners (P+P Winners) excel at creating opportunities for their employees to build skills (which we measure by looking at internal mobility, training hours, and organizational health scores) while consistently clearing the highest bar for financial performance. Another group, Performance-Driven Companies, similarly achieve top-tier financial results but do not put the same kind of emphasis on skills development and the work environment. A third group, People-Focused Companies, put resources into developing employees but are unable to translate that into strong financials. Finally, the majority of firms are Typical Performers that stand out on neither dimension.

P+P Winners distinguish themselves from Performance-Driven Companies in two important ways. They achieve more consistent results and have greater earnings resilience, and they also have a superior ability to attract and retain talent (Exhibit 1). These are important advantages at a time when companies are facing economic headwinds and labor shortages.

While they closely tracked Performance-Driven Companies on profitability and shareholder returns over the prepandemic decade, P+P Winners were roughly 1.5 times more likely to remain in the top tier year after year, and they had about half the earnings volatility.

P+P Winners are not only consistent through the normal ups and downs of business cycles; they are also more resilient in times of crisis. When the pandemic struck, they were more likely to weather the crisis and avoid taking major hits. Only 54 percent of P+P Winners saw a reduction of more than 0.5 percentage point in return on invested capital from 2019 to 2020, compared to 65 percent of Performance-Driven Companies. In fact, 36 percent of P+P Winners saw an increase of more than 0.5 percentage point (versus 29 percent of Performance-Driven Companies). More P+P Winners found growth opportunities in the crisis years as well. From 2019 to 2021, they grew revenue twice as fast as Performance-Driven Companies (8 percent versus 4 percent). Organizations that had spent years building reserves of loyalty, goodwill, and innovative capacity by investing in people may have had more internal resources to draw on when the chips were down.

Investing in human capital is associated with consistency and resilience for other companies, too. In the two segments that are not top performers financially, People-Focused Companies demonstrated greater stability than Typical Performers. Typical Performers were 1.5 times more likely than an average firm in our sample to remain in the bottom quintile of profitability in nine out of ten years, while People-Focused Companies were only 1.1 to 1.3 times as likely. The latter also demonstrated greater resilience during the pandemic, growing their revenue twice as fast as Typical Performers (6 percent versus 3 percent) from 2019 to 2021.

A McKinsey event on "Performance through people: Transforming human capital into competitive advantage"

P+P Winners are also talent magnets, with attrition rates almost five percentage points lower than those of Performance-Driven Companies. Their employees report higher job satisfaction and are 1.3 times more likely to move into higher lifetime earnings brackets than employees of Performance-Driven Companies. People-Focused Companies have similarly high levels of employee satisfaction and even lower attrition than P+P Winners, although not with the same stellar financial performance.

How do P+P Winners manage to succeed on both fronts? While investing in people is important, our research shows that another ingredient is needed to bring out their best and channel their efforts into results: organizational capital—that is, the management practices, systems, and culture within each company. This concept encompasses everything from training programs to workflows, department and team structures, employee communications, norms, culture, and leadership. When these elements are effective, they can turn a collection of talented individuals into a cohesive team.

Organizational capital is the fabric that surrounds employees, and its pattern matters. We compare the practices of each group of companies using McKinsey’s Organizational Health Index diagnostic and other firm-level metrics. P+P Winners have a distinctive signature characterized by consultative and challenging leadership styles; bottom-up innovation and collaboration; positive and inclusive work environments; and rewards and advancement opportunities for employees (Exhibit 2). Performance-Driven Companies have similar leadership styles but are more externally oriented to customers and competitors, with less emphasis on engaging their people through company-wide innovation, motivation, work environment, and on-the-job coaching. People-Focused Companies have many practices in common with P+P Winners (such as motivating employees and creating positive work environments), but they are less results-oriented, and they do not emphasize bottom-up innovation.

On average, companies spend about one-third of their revenue on human and organizational capital (which we measure by using the proxy of compensation for the former and adjusted selling, general, and administrative spending for the latter). This is a significant investment, and companies need to make it as productive as possible. P+P Winners achieve roughly 30 percent higher revenue growth than both Performance-Driven and People-Focused Companies for every dollar they invest in human and organizational capital. By contrast, Performance-Driven Companies generate higher return on R&D and sales and marketing investment—but they have the potential to boost their overall results even further by making their investments in people and workplace systems more effective.

Corporate leaders need a deeper focus on the nuances of organizational capital. Human capital is not merely a labor input; people are any company’s core asset. The workplace should work for employees, with coaching to help them develop, structures for support, and workflows that remove frustrations. Employees know what works on the front lines, and their voices and viewpoints should inform any redesign. Beyond improving the day-to-day experience for workers at every level, these principles can enhance competitiveness and adaptability in a fast-moving world.

In some cases, altering company-wide policies and systems could spur positive change. In others, it will take behavior change from leaders. While C-suite executives can articulate the vision and set the example, frontline and middle managers are key actors since they set the tone for individual teams, have greater visibility into what’s working, and can be the biggest influence on the employee experience.

Not every company will choose to follow the P+P Winner template. Some are singularly driven by financial results; focusing on people may not be in their DNA. Remaking organizational culture is a difficult, ongoing commitment that requires energy, self-reflection, and a willingness to change familiar patterns.

But companies that adopt a more people-oriented focus along with a more challenging and empowering organizational culture have a lot to gain. In addition to boosting financial returns, they can improve their consistency, resilience, talent retention, employee loyalty, and reputation—and these are the hallmarks of companies that thrive over the long term.

Want to know more about Performance through People?

Download the full report

Anu Madgavkar is a McKinsey Global Institute partner in New Jersey; Bill Schaninger is a McKinsey senior partner in the Philadelphia office; Dana Maor is a senior partner in the Tel Aviv office; Olivia White is an MGI director in San Francisco; Sven Smit , MGI’s chair, is based in Amsterdam; Hamid Samandari is a McKinsey senior partner in the New York office; Lola Woetzel is an MGI director in Shanghai; Davis Carlin is a McKinsey partner in New York; and Kanmani Chockalingam is an MGI fellow in Bengaluru.

This article was edited by Lisa Renaud, an MGI executive editor in Los Angeles.

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Essay on Human Capital: Top 5 Essays | Organisation | Management

Here is a compilation of essays on ‘Human Capital’ for class 9, 10, 11 and 12. Find paragraphs, long and short essays on ‘Human Capital’ especially written for school and college students.

Essay on Human Capital

Essay Contents:

• Essay on the Conventional Measurement Method of Human Capital

Essay # 1. Meaning of Human Capital:

Human capital is the intersection of an organization’s skills, the required roles, and the people available and it can be explained as:

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Skills includes hard skills, leadership, business skills and interpersonal skills.

Roles pertains to jobs, project roles and positions within the organization.

People are the key; finding people with the right skills, competencies, experience and education to fill the necessary roles.

Human capital is referred to as knowledge, education and competencies of individuals as well as health Sharpe, 2001; Business and Information 2013 – G3 – UNESCAP, n.d., and the aggregation of investments in such areas as education, health, training, and migration to improve skills and competencies with realizing about tasks and goals, that enhance an individual’s productivity.

It is quite difficult to find studies or scholarly propositions stating directly that human capital holds a relationship with, or can lead to sustainability of organizations. However, Hatch and Dyer suggested the believed that having elements of human capital allows organization to learn faster than competitors, which can lead to sustainable advantage. Nevertheless, jumping to the conclusion that human capital is the way to sustainability might not be solid enough to communicate to the field.

ADVERTISEMENTS: (adsbygoogle = window.adsbygoogle || []).push({}); Essay # 2. Concept of Human Capital :

The concept of human capital is semantically the mixture of human and capital. In the economic perspective, the capital refers to ‘factors of production used to create goods or services that are not themselves significantly consumed in the production process’.

Along with the meaning of capital in the economic perspective, the human is the subject to take charge of all economic activities such as production, consumption, and transaction. On the establishment of these concepts, it can be recognized that human capital means one of production elements which can generate added-values through inputting it.

The basic concept of human capital can be variously categorized by each perspective of academic fields and to explain the main concept of human capital three view-points can be mentioned as:

1. The first viewpoint is based on the individual aspects. Schultz (1961) recognized the human capital as ‘something akin to property’ against the concept of labor force in the classical perspective, and conceptualized ‘the productive capacity of human beings in now vastly larger than all other forms of wealth taken together’.

2. There is the second viewpoint on human capital itself and the accumulation process of it. This perspective stresses on knowledge and skills obtained throughout educational activities such as compulsory education, postsecondary education, and vocational education.

3. The third is closely linked to the production-oriented perspective of human capital. Romer (1990) refers to the human capital as ‘a fundamental source of economic productivity’. Rosen (1999) states the human capital as ‘an investment that people make in themselves to increase their productivity’.

More recently, Frank & Bemanke (2007) define that human capital is ‘an amalgam of factors such as education, experience, training, intelligence, energy, work habits, trustworthiness, and initiative that affect the value of a worker’s marginal product’.

ADVERTISEMENTS: (adsbygoogle = window.adsbygoogle || []).push({}); Essay # 3. Characteristics of Human Capital :

Characteristics of human capital can be mentioned as:

1. Expandable and Self-Generating Characteristics:

To begin with, the expandable and self-generating characteristics of human capital are closely linked to the possibility that the stock of knowledge increases individuals’ human capital. Furthermore, the increase of human capital can be expanded by either endogenous or exogenous factors.

It is possible that original knowledge can be continuously elaborated and developed through the relationship between external knowledge, information, skills, experiences, and other knowledge- based factors as well.

In the economic perspective, the characteristic of human capital focusing on knowledge can be a core element to solve ‘problem of scarcity’ which little materials is equivalently distributed to economic agents. Throughout expanding and self- generating the human capital, it is sufficiently possible that the portion of that capital as an economic agent is extended.

2. Transportable and Shareable Characteristic:

The transportable and shareable characteristics of human capital mean that the original holder of knowledge can distribute his/her knowledge to others. On the circumstance that the original knowledge- holder’s exclusive ownership is slightly acceptable, the equivalent distribution between the holders and the takers can be actualized. Consequently, the former two characteristics extend the ‘volume’ of human capital, and the latter two expand the ‘range’ of human capital.

ADVERTISEMENTS: (adsbygoogle = window.adsbygoogle || []).push({}); Essay # 4. Importance of Human Capital :

Importance of human capital can be explained as:

1. It is important because it is closely linked to core competences and competitiveness of organization.

2. It directly affects the productivity of the organization.

3. It is required for the purpose of maximizing organizational profits.

4. Human capital is important because it can increase social consciousness of constituents within community.

5. It is important because higher performance of employees directly leads to customer satisfaction, productivity, profit, employee turnover and safety at work.

6. It helps in building organization’s image in the market.

7. It is important because it is the most important pillar of an organization. An organization is nothing without employees.

8. Human capital is the backbone of Human Development and economic development in every nation.

9. Better use of capital goods- modern technology is becoming more and more complex. With the growth of science, machinery and equipment are becoming more sophisticated. Their efficient operation requires skill and technical knowledge. Therefore skilled human capital is very significant.

10. Better use of improved knowledge- knowledge about production and management of economies is expanding at a very fast rate and to move with that pace human capital helps a country a lot

11. It is important for the overall performance of an organization because if not taken care properly then the individual human capital can affect organizational human capital such as ‘collective competences, organizational routines, company culture and relational capital as well and that would cause a bad impact on the overall performance.

Essay # 5. Conventional Measurement Method of Human Capital :

The conventional standard to measure human capital stock has been largely categorized into various parts such as, Cost-, and Income-based approach etc.

They can be described as:

1. Cost-Based Approach:

Cost-based approach is based on measuring the stock of human capital through summing costs invested for one’s human capital. For the purpose of calculating the invested costs, Kendric (1976) utilized an individual’s investment costs considering depreciation, and Jorgenson & Fraumeni (1989) presented discounted income in the future. Considering that this approach is based on indirectly measuring stock of human capital, it is difficult to precisely classify boundary between investment and consumption in the perspective of costs for the human capital.

2. Income-Based Approach:

This approach is based on the returns which an individual obtains from a labor market throughout education investment. Mulligan & Sala-i-Martin (1995) defines that aggregate human capital is the sum of quality adjustment of each individual’s labor force, and presents the stock of human capital utilizing an individual’s income. Considering that ‘human-unrelated factors’ can more influence an individual’s income, this approach rarely presents a complete measurement for human capital.

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Essay on Human Resources

In this essay we will discuss about Human Resources. After reading this essay you will learn about: 1. Meaning and Importance of Human Resources 2. Importance of Human Resources 3. Role in Economic Development.

• Essay on the Role of Human Resources in Economic Development

Essay # 1. Meaning of Human Resources :

By the term human resources we mean the size of population of a country along-with its efficiency, educational qualities, productivity, organisational abilities and farsightedness. By human resource we mean human capital. Human capital implies the abilities, skills and technical knowhow among the population of the country. A country should introduce manpower planning for the development of its human resources.

Human resources must be considered both from the angle of assets as well as the liabilities connected with the attainment of economic development. For the attainment of economic development, proper utilisation of both natural as well as human resources is very much essential.

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Proper utilisation of natural endowments and the level of production of national wealth depend very much on the extent and efficiency of human resources.

But too much population will again eat up all the fruits of development. Thus from the point of view of economic welfare, it is quite essential to study human resources in detail. It should be equally stressed that human beings are the vital instrument of production and at the same time, fruits of all economic activities are rested on the betterment of conditions of living of human beings.

Thus in view of its importance, it is quite essential to know both in quantitative and qualitative terms, the size, rate of growth, the composition, distribution and all other demographic features of population of India.

Essay # 2. Importance of Human Resources:

(i) proper utilisation of resources:.

Human resources are considered important type of resources for attaining economic development of a country. Among various types of resources, human resources are the most active type of resources. Qualitative and quantitative development of human resources is very much required for the proper utilisation of natural resources of the country.

Thus the human capital formation according to Prof. Meier is “the process of acquiring and increasing the number of persons who have skills, education and experience which are critical for the economic and political development of the country.”

(ii) Increased Productivity:

Human capital has been playing an important role in the economic development of a country. Schultz, Kenderick and Harbison have made some important studies recently so as to point out that a major part of the growth of national output in USA can be attributed to increased productivity which has been mostly realised out of capital formation.

In this connection Prof. Galbraith was of the view that “we now get the larger part of industrial growth not from more capital investment but from investment in men and improvements brought about by improved men.”

(iii) Development of Skills:

Slow growth in underdeveloped countries is mostly resulted from lack of investment in human capital. These countries are suffering from lack of critical skills required for its industrial sector and also face the problem of surplus labour force in its farm sector. Thus human capital formation is very much required for the economic development of the underdeveloped countries.

In this connection, Prof. Myint observes that, “It is now increasingly recognised that many UDCs may be held back, not so much by a shortage of savings as by a shortage of skills and knowledge resulted in a limited capacity of their organisational framework to absorb capital in productive investment.”

Thus the underdeveloped countries are suffering from shortage of technically trained and highly skilled and educated persons and the developed countries are maintaining high level of investment on the development of manpower resources.

Accordingly Prof. Meier observed that, “While investment in human beings has been a major source of growth in advanced countries, the negligible amount of human investment in UDCs has done little to extend the capacity of the people to meet the challenge of accelerated development.”

Thus in order to attain an all round development of the country, the human capital formation through adequate volume of investment on human development is very much important under the present context of development.

(iv) Increased Volume of Output:

As a result of human resource development, the production increases as the knowledgeable and skilled workers can make a rational use of all resources at their disposal. With the imparted knowledge, workers try to increase his output and income. Attainment of vocational skills helps the workers and all categories of manpower to earn higher level of income in various professions.

The higher education and training at higher educational set up like college and universities usually enables workers to contribute liberally towards faster expansion of output in technical, engineering, machine building, accounting, management etc. Moreover, improved health facility can enhance physical capacity of workers. Thus all these factors positively contribute towards increased output.

(v) Addition to Productive Capacity:

Human resource development in the form of human capital formation can make necessary addition to the productive capacity of a country in humorous ways. By upgrading the technological scenario along with improved knowledge and skill can modernise the production technologies and thereby can add to the productive capacity of the country in general.

Transfer of technology from foreign countries can pave the way for adoption of modern technology into production and thereby can improve the productive capacities. Moreover, human capital formation can promote higher growth of the economy by adding physical stock of capital of the country.

(vi) Raises Per capita Income:

Human resources development can raise per capita income of the country through increased formation of human capital. Imparting knowledge can improve the productivity of workers and therefore, can raise the per capita income.

(vii) Tool for Economic Change:

Human resource development can make the people knowledgeable, skilled and physically fit. This can also change the attitudes of the people and improve the personal qualities of people.

Such changes are conducive to the development of innovative capacity and entrepreneurship which usually motivates people to work hard, take risks, do research and apply them to produce new products and also to develop new processes of production. All these can work as a tool for economic change.

(viii) Improving Quality of Life:

Human resources development can pave the way for improving quality of life for the people in general. This can be made possible through improvements in the three components of Human Development Index (HDI), i.e., rise in per capita income, higher educational attainments and increase in life expectancy.

Essay # 3. Role of Human Resource in Economic Development:

Human resources are playing an important role in attaining economic development of a country. Economic development of country involves proper utilisation of its physical resources by its labour force and other forms of manpower for the proper utilisation of production potential of the country.

Thus economic development normally involves achievement of three conditions:

(a) An increase in the per capita income to raise the level of living of the people;

(b) A fall in the magnitude and rate of unemployment and

(c) A consequent reduction in the number of people living below poverty line.

Although the labour force of the country is making positive contribution towards development but the rapidly growing population retards the process of development and thus considered harmful for economic development of the country.

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Human resource planning (HRP) Exploratory Essay

Today, chief executive officers (CEOs) refer to their workforce (or human capital) as their organizations’ chief asset. This statement underpins the importance of the concept of human resource in organizations.

Human resource planning (HRP) enables an organization to better realize its goals by ensuring that it makes efficient and effective use of its human capital.

Today’s workforce is characteristically ambitious and hence, volatile. Rosenberg (n.d.) reiterates that employees switch careers an approximated three times in their working life. Even with this change in the nature of the workforce employer, employee and customer demands and expectations remain the same.

In addition to these, organizations are competing immensely for high quality talent and are at the same time investing heavily in acquiring and retaining it as these is crucial in meeting business objectives and goals.

Thus, HR managers have an additional task, which is HRP that is instrumental in dealing with the element of uncertainty as it pertains to an employee’s future. From an organization’s point of view a translation of HRP is making good use of an employee while he/she is in the organization’s hands.

Yan et al (2009) reiterates that an organization’s workforce (or human capital) is a valuable asset. A robust human capital is a critical success factor in ensuring that the expectations of customers are met, which is the key to positive financial performance.

Realizing such a robust human capital requires a sound and strategic HR policy, which ensures that an organization recruits the best expertise available and makes the best use of it for as long as it can. Forecasting an organization’s current and future financial needs and HRP are core units of such an HR policy.

HRP is according to Dessler (2001, p. 24) the process of “anticipating future demand for staff, allocating different kinds of staff within organisations, and developing systems for calculating human resource requirements based on accurate records and forecasting techniques”. What HRP does is that it facilitates the effective use of an organization’s human capital.

It does this by ensuring that the right personnel are working at the right place and at the right moment. Forecasting an organization’s current and future HR needs involves using either a quantitative approach or a qualitative one.

The quantitative approach to forecasting an organization HR needs involves numerical quantification of employees by use of statistical and mathematical procedures. By grouping the resultant numerical entities into applicable groups it is possible to determine HR excesses, deficits and inconsistencies.

Examples of applicable groups include age, pay, gender, qualifications and performance rating. HR managers co-work with statistical and mathematical experts to ensure that there is accurate quantitative forecasting.

The qualitative approach to forecasting an organization’s HR needs involves consultations with experts. The opinions of the expert drawn from the consultations enlighten the organization on what its HR needs are, specifically, staffing requirements and career development paths to pursue.

The expert bases his/her opinions on evaluations on employee performance and potential for promotion. A comparison of the quantitative and qualitative forecasting approaches reveals that the latter is more popular as it is cost and time saving.

There are a number of factors that HR managers should consider when undertaking HRP. According to Stone (2008) one these factors is women in the workforce. Today’s workforce contains an increasing number of women. An incentive that is greatly contributing to this increase is the use of mother-friendly alternative working arrangements in organizations.

For instance, employers are providing mothers with flexible work arrangements, special parental leaves, job sharing arrangements, childcare facilities within the organization’s premises, telecommuting work arrangements etc. From 1982 to 2005 Australia has seen a rise of 18.7% in the number of females in employment who are between the ages of 18 and 64 years (Australian Bureau of Statistics, 2010).

In addition to this, from 1989 to 2004 Australia has also seen a rise of 6% in the number of working mothers (Australian Bureau of Statistics, 2010). HR managers when doing HRP should be aware of the fact that the number of women in the workforce is on a rise and should therefore put in place mechanisms that attract and retain them.

To illustrate the above point lets take the example of Diane Gibney. Diane returns to work at her former employer’s veterinary clinic after giving birth to her first child. Due to post antenatal commitments she asks her former employer for an alternative working arrangement, namely, flextime which would allow her to work at given times of the day. The employer refuses to offer her such a working arrangement.

Following the employer’s refusal Diane quits her job and with another partner opens their own veterinary clinic. The 14 staff members in Diane’s new clinic are all female. She is sensitive to antenatal commitments and accords her employees flexible working arrangements so that they are able to attend to them. This example underpins the appreciation that employers should give to mother-friendly HR policies.

Another example is that of Caroline Coops. Caroline’s has a strong commitment and a high motivation to work for her current employer. The reason for this is that the employer accommodates flexible working arrangements that particularly enable and empower mothers to attend to their antenatal commitments. Though Caroline is not a mother yet, this provision by her employer has had a profound effect on her.

It gives her piece of mind knowing that when such commitments arise she is able to adjust a working schedule so that she can better attend to her family needs. This example shows that family-friendly HR policies attract women into employment and are instrumental in retaining them in the organization’s workforce.

Employee retention is critical in meeting business objectives as the direct and indirect costs employers incur to employee turnover are phenomenal. Direct costs are those that an employer incurs when replacing the individual who has made the turn over. Indirect costs are those that the employer incurs because of reduced productivity. Attracting high quality talent to an organization is also critical in meeting business objectives.

Flexible working arrangements that are family-friendly enable organizations to attract and retain such talent as shown from the two examples above. In other words, such working arrangements enable employers to combat employee turnover and at the same time attract high quality talent to the organization.

They are a critical business success factors with today’s workforce that contains an increasing number of women and particularly mothers.

According to Stone (2008) another factor for HR managers to consider when doing HRP is globalization. Dessler (2001) describes globalization simply as the venturing of businesses into new international markets. Advances in information technology have been and continue to be instrumental in globalization. Soon the world will be a global village with ecological and socio-political systems that are dependent on each other.

An advantage of globalization is that employers have a bigger market in which they can shop for individuals with the right levels of skill, experience and knowledge.

An outright disadvantage of globalization is that it supports or encourages brain drain. Organizations that are global employers via globalization should manage their multiracial and culturally diverse workforce in such a way that conflicts between employees are at a minimal.

To illustrate that globalization is a factor that HR managers should consider when undertaking HRP we take the example of an American firm which invested in England. The firm bought a textile machinery company near Birmingham. To boost productivity the American manager of the textile machinery company set about on cutting the time lost on tea breaks, which amounted to thirty minutes in a day per employee.

Culturally, having tea in such a manner is not a big issue to Americans but it is to the English. So, by the direction and instruction of the American manager a tea-maker machine was installed in the company. An infuriated workforce went on a riot demanding the removal of the tea-maker machine. The American manager had to comply with the demands of his English workforce.

According to Stone (2008) another factor that HR managers should consider when undertaking HRP is ageing population. The current situation in most economies of the world is a workforce with, first, less people entering it and second, an ageing and near retirement population. This is an impending crisis for employers. Soon, there will be a lack of both skilled and experienced labour.

At the moment, individuals nearing retirement are the ones fuelling a huge portion of workforce growth. This means that when this ageing population retires workforce growth will almost stagnate causing a huge problem to employers.

Additionally, mature age workers tend to be more loyal and productive in comparison to their younger counterparts. It is therefore imperative that HR managers start figuring out how they can retain their organization’s mature workers.

To illustrate that ageing population is a factor that HR managers should consider when undertaking HRP we consider the case of Peter Jordan. Peter Jordan is a business consultant. He is of the opinion that HR managers should redirect their employee retention efforts towards keeping mature workers (Porter, 2008).

Jordan cites this as being crucial in averting or mitigating the effects of an imminent staff and knowledge shortfall that is about to hit in the very near future (Porter, 2008). Jordan additionally points out that there is more justification for this strategy when you consider employee loyalty between the mature and young age workforce (Porter, 2008).

Jordan opines that there is more employee loyalty in mature age workforce than in the young age workforce (Porter, 2008). Craig Perret feels the same way as Jordan’s pointing out that, HR managers should develop policies that encourage the mature age workforce to remain at work (Porter, 2008).

Other factors on top of these three that HR managers should consider when undertaking HRP are employment, organizational structure and culture, outsourcing and technological changes in society. HR managers should take a keen interest on the rate of employment in their countries.

Organizational structure and culture are instrumental in lifting employee morale and commitment to an organization. Technological changes in society can eliminate the need for certain employees in an organization thus bringing in cost cutting benefits. Outsourcing is a means for increasing capacity in organizations so that customer demand is met.

Australian Bureau of Statistics. (2010b). Women’s income . Web.

Dessler, G. (2001). Human Resource Management (8th ed.). Upper Saddle River, New Jersey: Prentice-Hall Inc.

Porter, L. (2008). Boomers can keep sea change at bay. The Age , p. 23. Web.

Rosenberg McKay, D. (n.d.). How often to people change careers? About.com: Career Planning. Web.

Stone, R. J. (2008). Human Resource Management (6th ed.). Milton, Qld, Australia: Wiley.

Yan, A., Rao, Y., Liao, C. & Gao, C. (2009). Competency identification of sales staff in the agricultural seed industry: Evidence of seed firms in China . Web.

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Invest in human and financial capital to drive sustainable industrialization, sadc urged.

Luanda, Angola, 17 August 2023 (ECA) - Africa should boost investment in human and financial capital to accelerate its sustainable industrialization and economic growth, Antonio Pedro, acting Executive Secretary of the Economic Commission for Africa said at the 43rd Southern African Development Community (SADC) Ordinary Summit of the Heads of State and Government in Luanda, Angola.

The 43rd Session which opened this week had the theme, Human and Financial Capital: The Key Drivers for Sustainable Industrialisation in the SADC Region .

Noting that human and financial capital were key drivers for sustainable industrialization, Mr. Pedro said much of Africa was off track to meeting the Sustainable Development Goals (SDGs) despite the region having endowments to rescue the SDGs and achieve Agenda 2063.  

African countries should align their education systems with market and societal needs, Mr. Pedro urged. Equally, he said governments must invest in science, technology, and innovation to move away from the resource extractivism model that characterizes most of Africa’s mineral-rich countries and escalate value chains to avoid the middle-income trap.

The impact of the global shocks of conflict, climate, food, and energy crises as well as heightened tensions call for a strong African position within the global geopolitical economy, he said.

“For countries in the SADC region, the Russian/Ukraine conflict laid bare the fragility of the diversification strategies that do not address the structural issues compounding our growth model and the germane issues of poverty and inequality, said Mr. Pedro, lamenting that, commodity dependence has left many African economies at the mercy of global commodity price fluctuations, boom and bust cycles, leading to macroeconomic instability.

Calling for African countries to “break this vicious cycle” of commodity dependence, Mr. Pedro highlighted trade diversification as the solution to reducing the region’s vulnerability to global market turbulence and geopolitics.

The SADC region needs a fit-for-purpose industrialisation and economic diversification pathway to rescue the SDGs and achieve Agenda 2063, the acting Executive Secretary emphasized, saying:

“Business as usual will not deliver the SDGs and Agenda 2063 nor the future we want. We need a paradigm shift in our approach to accelerate the pace of industrialisation, achieve an impactful structural transformation, and meet our goals.”

Multi-sectoral approaches boost industrialization

Mr. Pedro challenged African leaders to establish an ecosystem for transformational change and leadership that brings together the government, the private sector, and other stakeholders in quality dialogues and co-creation of home-grown solutions.

“The time we devote to creating an enabling environment for Foreign Direct Investment should equally be spared into creating an adequate environment for domestic investors, big and small, because the emergence of a strong and competitive small and medium-sized enterprise sector will create the jobs we need for the youth, “ said Mr. Pedro, calling for industrial policies to be at the center of development policies.

In addition, Mr. Pedro said African countries must move beyond aid and broaden finance to enhance productive capabilities by mobilizing more domestic resources through pension funds which are attracted to bankable projects.

“Greening industrialisation is possible in SADC and it would be a very smart course of action because soon it will be increasingly difficult for us to export our value-added goods to jurisdictions that are introducing carbon borders,” said Mr. Pedro.

Noting that carbon credit markets can support industrialisation in Africa, Mr. Pedro said the Democratic Republic of Congo could lead the region’s efforts in monetizing the ecological services of natural capital to finance structural projects.

At US$120 a ton of CO2 sequestrated, Africa can generate US$82 billion a year, more than what the continent receives from Overseas Development Assistance. In addition, the development of the DRC-Zambia transboundary battery and electric value chain would benefit the SADC region to produce batteries locally and accelerate the deployment of solar and wind energy across Africa.

While in Angola, Mr. Pedro met with Angolan Minister of Industry and commerce, Rui Miguêns de Oliveira and discussed the need for the country to diversify its economy by not only moving up the value chain but expanding into other sectors such as agriculture and agribusiness.

Mr. Pedro underscored the importance of mobilizing financial resources from diverse sources, including establishing a special purpose vehicle to enable Angola to tap dormant pension funds for development projects as well as developing Angola’s carbon credit market.

Noting that the strengthening the national statistics system was critical for Angola to mainstream natural capital in its national accounting, Mr.Pedro said such accounting will ensure that the country’s wealth is adequately measured and could improve its ranking beyond the GDP positioning.

Issued by: Communications Section Economic Commission for Africa PO Box 3001 Addis Ababa Ethiopia Tel: +251 11 551 5826 E-mail: [email protected]

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Guest Essay

José Andrés: Let People Eat

By José Andrés

Mr. Andrés is the founder of World Central Kitchen.

In the worst conditions you can imagine — after hurricanes, earthquakes, bombs and gunfire — the best of humanity shows up. Not once or twice but always.

The seven people killed on a World Central Kitchen mission in Gaza on Monday were the best of humanity. They are not faceless or nameless. They are not generic aid workers or collateral damage in war.

Saifeddin Issam Ayad Abutaha, John Chapman, Jacob Flickinger, Zomi Frankcom, James Henderson, James Kirby and Damian Sobol risked everything for the most fundamentally human activity: to share our food with others.

These are people I served alongside in Ukraine, Turkey, Morocco, the Bahamas, Indonesia, Mexico, Gaza and Israel. They were far more than heroes.

Their work was based on the simple belief that food is a universal human right. It is not conditional on being good or bad, rich or poor, left or right. We do not ask what religion you belong to. We just ask how many meals you need.

From Day 1, we have fed Israelis as well as Palestinians. Across Israel, we have served more than 1.75 million hot meals. We have fed families displaced by Hezbollah rockets in the north. We have fed grieving families from the south. We delivered meals to the hospitals where hostages were reunited with their families. We have called consistently, repeatedly and passionately for the release of all the hostages.

All the while, we have communicated extensively with Israeli military and civilian officials. At the same time, we have worked closely with community leaders in Gaza, as well as Arab nations in the region. There is no way to bring a ship full of food to Gaza without doing so.

That’s how we served more than 43 million meals in Gaza, preparing hot food in 68 community kitchens where Palestinians are feeding Palestinians.

We know Israelis. Israelis, in their heart of hearts, know that food is not a weapon of war.

Israel is better than the way this war is being waged. It is better than blocking food and medicine to civilians. It is better than killing aid workers who had coordinated their movements with the Israel Defense Forces.

The Israeli government needs to open more land routes for food and medicine today. It needs to stop killing civilians and aid workers today. It needs to start the long journey to peace today.

In the worst conditions, after the worst terrorist attack in its history, it’s time for the best of Israel to show up. You cannot save the hostages by bombing every building in Gaza. You cannot win this war by starving an entire population.

We welcome the government’s promise of an investigation into how and why members of our World Central Kitchen family were killed. That investigation needs to start at the top, not just the bottom.

Prime Minister Benjamin Netanyahu has said of the Israeli killings of our team, “It happens in war.” It was a direct attack on clearly marked vehicles whose movements were known by the Israel Defense Forces.

It was also the direct result of a policy that squeezed humanitarian aid to desperate levels. Our team was en route from a delivery of almost 400 tons of aid by sea — our second shipment, funded by the United Arab Emirates, supported by Cyprus and with clearance from the Israel Defense Forces.

The team members put their lives at risk precisely because this food aid is so rare and desperately needed. According to the Integrated Food Security Phase Classification global initiative, half the population of Gaza — 1.1. million people — faces the imminent risk of famine. The team would not have made the journey if there were enough food, traveling by truck across land, to feed the people of Gaza.

The peoples of the Mediterranean and Middle East, regardless of ethnicity and religion, share a culture that values food as a powerful statement of humanity and hospitality — of our shared hope for a better tomorrow.

There’s a reason, at this special time of year, Christians make Easter eggs, Muslims eat an egg at iftar dinners and an egg sits on the Seder plate. This symbol of life and hope reborn in spring extends across religions and cultures.

I have been a stranger at Seder dinners. I have heard the ancient Passover stories about being a stranger in the land of Egypt, the commandment to remember — with a feast before you — that the children of Israel were once slaves.

It is not a sign of weakness to feed strangers; it is a sign of strength. The people of Israel need to remember, at this darkest hour, what strength truly looks like.

José Andrés is a chef and the founder of World Central Kitchen.

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A Proclamation on Transgender Day of Visibility,   2024

On Transgender Day of Visibility, we honor the extraordinary courage and contributions of transgender Americans and reaffirm our Nation’s commitment to forming a more perfect Union — where all people are created equal and treated equally throughout their lives.  

I am proud that my Administration has stood for justice from the start, working to ensure that the LGBTQI+ community can live openly, in safety, with dignity and respect.  I am proud to have appointed transgender leaders to my Administration and to have ended the ban on transgender Americans serving openly in our military.  I am proud to have signed historic Executive Orders that strengthen civil rights protections in housing, employment, health care, education, the justice system, and more.  I am proud to have signed the Respect for Marriage Act into law, ensuring that every American can marry the person they love. 

Transgender Americans are part of the fabric of our Nation.  Whether serving their communities or in the military, raising families or running businesses, they help America thrive.  They deserve, and are entitled to, the same rights and freedoms as every other American, including the most fundamental freedom to be their true selves.  But extremists are proposing hundreds of hateful laws that target and terrify transgender kids and their families — silencing teachers; banning books; and even threatening parents, doctors, and nurses with prison for helping parents get care for their children.  These bills attack our most basic American values:  the freedom to be yourself, the freedom to make your own health care decisions, and even the right to raise your own child.  It is no surprise that the bullying and discrimination that transgender Americans face is worsening our Nation’s mental health crisis, leading half of transgender youth to consider suicide in the past year.  At the same time, an epidemic of violence against transgender women and girls, especially women and girls of color, continues to take too many lives.  Let me be clear:  All of these attacks are un-American and must end.  No one should have to be brave just to be themselves.  

At the same time, my Administration is working to stop the bullying and harassment of transgender children and their families.  The Department of Justice has taken action to push back against extreme and un-American State laws targeting transgender youth and their families and the Department of Justice is partnering with law enforcement and community groups to combat hate and violence.  My Administration is also providing dedicated emergency mental health support through our nationwide suicide and crisis lifeline — any LGBTQI+ young person in need can call “988” and press “3” to speak with a counselor trained to support them.  We are making public services more accessible for transgender Americans, including with more inclusive passports and easier access to Social Security benefits.  There is much more to do.  I continue to call on the Congress to pass the Equality Act, to codify civil rights protections for all LGBTQI+ Americans.

Today, we send a message to all transgender Americans:  You are loved.  You are heard.  You are understood.  You belong.  You are America, and my entire Administration and I have your back.

NOW, THEREFORE, I, JOSEPH R. BIDEN JR., President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim March 31, 2024, as Transgender Day of Visibility.  I call upon all Americans to join us in lifting up the lives and voices of transgender people throughout our Nation and to work toward eliminating violence and discrimination based on gender identity.

     IN WITNESS WHEREOF, I have hereunto set my hand this twenty-ninth day of March, in the year of our Lord two thousand twenty-four, and of the Independence of the United States of America the two hundred and forty-eighth.

                             JOSEPH R. BIDEN JR.

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