Value of Britain's skills is declining

The economic value of the knowledge and skills of the UK workforce has fallen for the first time in nine years, a Government-appointed study revealed today, after earnings growth slowed and unemployment increased.

The UK's human capital - measured by assessing educational achievement, income growth and investment in education and training - dropped by £130 billion to £17.12 trillion in 2010, after steadily growing since 2001, the Office for National Statistics (ONS) said.

Elsewhere, the ONS study revealed women's human capital at £6.64 trillion was around 63% of men at £10.48 trillion, as women spent less time in paid work and on average earned less.

The ONS published the estimates as part of a programme to measure national well-being, which was set up by David Cameron after he decided the Government needed to separate indicators of economic progress from those assessing the public's quality of life.

PA