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Journal number 3 ∘ Medea Kharaishvili
Human capital factor in economic course andEmployment policy challenges


The article assesses the factor of human capital in economic development. The needs of employment policy in Georgia have been identified.

The sources of the formation of this capital have been studied to explain the impact of the human capital factor on economic growth. The human capital is analyzed as determining factor of economic growth, innovative development and competitiveness of the national economy

Based on the study of various aspects of human capital theory, it is argued that modern economics requires a significantly higher degree of human capital. Based on these requirements, the modern views of scientists on the impact of human capital on economic growth are discussed.

Considering the human capital factor, the need to develop effective economic policy mechanisms for employment is justified. The paper draws conclusions and develops recommendations on effective impact on the economic development of the human capital factor and the development of employment policies.

Every economic field requires an appropriate level of education, and the existing education must be in line with the employment policy.

The personal and social benefits derived from higher education are closely related to the process that takes place from the completion of the course to the achievement of employment.

he benefits of investments in higher education become visible when, after graduating from university, it becomes possible to find a job that corresponds to the level of education received. After graduating from the university, the employment of the graduate in an adequate job soon after graduation is the field of interest of the same individuals, it should also be the priority goal of the educational institutions and the state.

Human capital development paves the way for new opportunities by increasing the value of labor, increasing competitiveness and innovation. 

Achieving economic growth and development of the country depends on the level of human capital development. It should be taken into account that the accumulation of qualified and educated human capital is a determining factor in promoting the country's economic growth.

Human capital development is achieved through education, and higher education is realized through employment. Human capital is the main factor determining the achievement of a high level of development in a modern economy and an economy based on education.

Therefore, the study of the human role in the economy and the implementation of a targeted employment policy is the lever that unconditionally determines the country's success.

Human capital is a combination of knowledge, experience and skills, the combination of which allows us to meet the demands of society.

The quality of human capital is determined by the amount of investments made for human development, against the background of this, higher education and skills help to strengthen work ability. In order for human capital to meet international standards, appropriate government spending on food, housing, culture and education is needed.

Human capital determines economic development. Developed human capital determines a high-level society, developed families, educated labor resource.

In order for important sectors of the economy to develop, human capital must be planned taking into account international standards. It means: promotion of medicine, high-level technologies, management, priority fields and, most importantly, raising the level of education.

Human capital is an intangible asset that is not listed on a company's balance sheet. Human capital includes attributes such as employee experience and skills, since not all employees can have equal experience and skills, an employer can improve human capital by investing in the learning and motivation of its employees. Human capital is related to economic growth, productivity and profitability.

Education and training are indirectly related to state creation. This relationship is related to the macroeconomic nature that is derived from the analysis and explanation of education policy. Knowledge is the source of innovation and the result of economic growth. Human capital through education makes the greatest contribution to economic growth.

Employment policies are important for both employers and employees to understand their respective employment relationships. The right kind of policy can strengthen the employer's position and shape employee behavior. The goal of employment policy in any country is to ensure employment growth.

Most importantly, there is a close, logical connection between economic development and employment policies in countries. Within the active policy of the labor market and employment, it is very important to pay special attention to the issues of employment of certain socio-demographic and vulnerable groups of the population.

In researching human capital, the fact that people's work may not be equal has been highlighted, but employers can improve the quality of capital by investing in employees.

Implementation an active employment policy should become the main lever for overcoming unemployment and poverty in the country and a priority part of the unified state policy. 

Key words: human capital, human capital factor, economic growth, employment policy, policy challenges