Human Resource: Meaning, Importance, Quality of Population, Examples

The compilation of these People as Resource Notes makes students exam preparation simpler and organised.

Human Resources

Have you ever considered why humans are considered a resource? This is because humans have the ability to transform gifts from nature into valuable resources that can be utilized for useful purposes. Let us take a closer look at why the human resource is the most important resource.

Human Resource

Human resource refers to the people who are part of the workforce. The human resource plays a significant role in the economy of a country by contributing to productivity. The other resource becomes useful because of the input by the human resource.

Investment in human capital yields a return and it is done through education, training, and healthcare. It is truly known that a person who is educated earns better than an uneducated person. Also, a healthy person is much more productive than an unhealthy person.

Human Resource

It is really the well-educated parents who understand the value of education and at the same time invest in their child’s education to secure a better future for the child. However, the uneducated parents fail to invest in their child’s education and healthcare of their children which in turn creates a vicious cycle wherein the coming generation is often forced to remain poor.

Educated parents also take extra care of the health and nutrition of their child which leads to a virtuous cycle of creating a better human capital. Education enhances the literacy level and skill level of a person. It also helps in enriching the culture of the society. The presence of educated persons in society indirectly benefits illiterate persons as well.

Economic Activities

The economic activities can be divided into three types–

1. Primary Activities: Primary activities are those economic activities which are related to agriculture, horticulture, animal husbandry, poultry farming, fishing, quarrying, mining. Natural resources are extracted with very little or no modification in the case of primary activities.

2. Secondary Activities: Manufacturing activities are referred to as secondary activities. In the secondary activity, the natural resources are properly modified.

3. Tertiary Activities: Tertiary activities refer to those economic activities that support the primary as well as secondary activities. Some services that fall under tertiary activities are – Banking, transport, finance, and different types of services.

Economic activities are also divided into two types, on the basis of production goal, which is – market activities and non-market activities.

1. Market Activities: When some product or service is produced to be sold in the market, it is called market activity.

2. Non-market Activities:: Some product or service is produced only for the purpose of self-consumption which is also known as the non-market activity.

For example – An activity can be considered non-activity when a farmer produces just enough to meet his family’s needs and similarly, the work of a housewife that is strictly for the benefit of her family members.

Quality of Population

The prime important aspects that determine the quality of life are – Literacy rate, health, and skills. The illiterate and the unhealthy population can be a liability for the economy whereas the literate and healthy population can be an asset for the economy. It is because of the reason that the literate and healthy population contributes towards the Gross Domestic Product (GDP) of a country.


How are human resources different from other resources?
Human resource is known to be one of the superior resources as compared to other resources like land and physical capital. It can make use of land and physical capital, however, land and physical capital cannot become useful on their own.