Inputs like education and health helped in making people an asset for the economy. Investment in human capital (through education, training, medical care) yields a return just like investment in physical capital.
Human resource makes use of other resources like land and physical capital to produce an output. The other resources are not useful on their own.
The various economic activities have been classified into three main sectors - primary, secondary and tertiary. Primary sector includes agriculture, forestry, animal husbandry, fishing, poultry farming, mining and quarrying. Manufacturing is included in the secondary sector. Trade, transport, communication, banking, education, health, tourism, services, insurance, are included in the tertiary sector.
The quality of population depends upon the literacy rate, health of a person indicated by life expectancy and skill formation acquired by the people of the country.
Human capital refers to the stock of skill and productive knowledge embodied in a population. This skill and productive knowledge is provided with the help of proper education and training. However, the benefits of education alone do not lead to the creation of human capital. A human population which is educated but unhealthy cannot realise its potential. An unhealthy population is a liability, and not an asset.
Unemployment is said to exist when people who are willing to work at the going wages cannot find jobs. Seasonal unemployment happens when people are not able to find jobs during some months of the year. Disguised unemployment is a situation in which an individual appears to be employed, but he does not add to the productivity. That is, the productivity would remain the same even in his absence.