There are some lists where you want to be in first place, and some where you don't. When it comes to ranking human capital, the United States is definitely going in the wrong direction—from 6th place down to 27th. China on the other hand, is going the other way, having risen from 69th to 44th place.

That's according to the results of a new first-of-its-kind scientific study that ranked countries for their levels of human capital. The study “Measuring human capital: A systematic analysis of 195 countries and territories, 1990 to 2016,” which was published in medical journal The Lancet, placed the U.S. one spot down from Australia and just above the Czech Republic for its investments in health care and education as measurements of its commitment to economic growth.

As reported on Popular Resistance, “Human capital is the sum total of a population's health, skills, knowledge, experience and habits. It is a concept that recognizes that not all labor is equal, and the quality of workers can be improved by investing in them.” And the U.S. is falling down on the job.

While in 1990 the U.S. came in 6th, its current rating of 27th in the world represents “having 23 years of expected human capital, measured as the number of years a person can be expected to work in the years of peak productivity, taking into account life expectancy, functional health, years of schooling, and learning.” Finland, for its part, finished in first place.

Meanwhile, China—as well as Turkey, Thailand, Vietnam and Singapore, in addition to Brazil—have all shown marked improvement, as have Middle Eastern countries and Equatorial Guinea.

“The decline of human capital in the United States was one of the biggest surprises in our study,” Dr. Christopher Murray, director of the Institute for Health Metrics and Evaluation (IHME) at the University of Washington, said. “Our findings show the association between investments in education and health and improved human capital and GDP—which policymakers here in the US ignore at their own peril. As the world economy grows increasingly dependent on digital technology, from agriculture to manufacturing to the service industry, human capital grows increasingly important for stimulating local and national economies.”

He concludes, “Clearly, China is on an upward trajectory, while the U.S., without more strategic investments, especially in education, risks falling behind even further.”

The U.S. owes its current lower position to “minimal progress, particularly in educational attainment, which declined from 13 years to 12,” according to the report.

Instant Insights /

U.S. losing ground on human capital performance

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