Human Capital of Young Europeans in the Context of Contemporary Labor Market Challenges

Purpose: The purpose of this article is to analyze and assess the level of human capital among young Europeans from the perspective of the challenges of the contemporary labor market. Design/methodology/approach: The level of human capital of young people in selected European countries was diagnosed using the development pattern method developed by Z. Hellwig. Additionally, the Ward hierarchical clustering method was used, where a dendrogram was applied to group countries based on the similarity of features. The synthetic measure by Z. Hellwig was calculated on the basis of 24 diagnostic features. These features are organized into four groups that characterize the human capital of young people both directly and indirectly. The first group concerns the activity of young people in terms of broadly understood education and the use of digital skills. The second group of diagnostic features relates to young people's activity in the labor market, through which their human capital may either appreciate or depreciate. The third group pertains to the health status of young people. The fourth group of features characterizes the social and cultural activity of young people, which shapes their interpersonal skills and fosters creativity. The study covered young people (aged 15–29) in 29 European countries. Findings: In light of the features adopted for the study, the level of human capital among young people in European countries varies significantly. The countries with the highest levels of human capital are the Netherlands, Switzerland, and Norway. A notable observation is the relatively large group of countries (11 in total) where the level of human capital remains low. These include: Germany, Spain, Latvia, Hungary, Cyprus, Slovakia, Serbia, and Greece. The lowest levels of human capital among young people are observed in Italy, Bulgaria, and Romania. The presented study may serve as a basis for further, in-depth analyses of the impact that deficits in human capital among young people have on the economic development of European countries. Practical implications: The research findings may serve as guidelines for public authorities in the development and evaluation of strategies for human capital development in the countries covered by the study. Originality/value: This study attempts to fill a research gap regarding human capital among young people in European countries from the perspective of the challenges posed by a transforming economy—one that is increasingly dependent, on the one hand, on digital technologies, and on the other, on human creativity and innovative activity. The diagnostic features (selected by the author of the article) used to characterize human capital were chosen to best reflect the knowledge, skills, and experiences necessary in today’s labor market.