Briefly discuss the various problems of human capital formation

Question – Briefly discuss the various problems of human capital formation.

Answer –

Problems faced by human capital formation

• Rising population- Rising population decreases the quality of human capital as rising population decreases the per head availability of the existing facilities. This leads to fall in the capacity to acquire new skills and knowledge.
• Brain drains- Skilled and educated persons who have high calibre when migrate to o developed countries in search of better job opportunities. In search of better job and better living people migrate from one country to another and this slows down the process of human capital formation in the domestic country.
• Lack of proper man Power planning- Today we are facing an explosive problem relating to graduate unemployment as we are not able to maintain the balance between the demand-supply balance of the ever-rising labour force in the economy. It reflects the wastage of human resource.
• Insufficient On the job training in agricultural sector- Agriculture give employment to around 50 per cent of the population in our economy but still it has not received the required attention. The technology and technique used is still outdated and there is serious deficiency of human capital formation in this sector.

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