Human Capital Formation and Employability in An Information Economy: A Study of New Zealand's ICT Sector

Abstract

Human capital formation is vital in furthering the employability of a nation's workforce. Employability in a networked and information society has undergone a paradigm shift. The key participants in the labour market- employers, employees, trade unions and the government have to proactively address various issues emerging at the global level by assessing its implications for them at macro and micro levels and by furthering human capital formation so as to maintain the employability of their workforce. This paper presents the trends emerging at global levels, the extent to which they are reflected in OECD countries and in New Zealand, with a specific focus on its ICT (Information and Communications Technology) sector. It further discusses the dilemma faced by different players in contributing in furthering human capital formation and employability. Secondary data pertaining to emerging trends on human capital and employability in the ICT sector is analysed from various government agencies and international organisations. Although there is some strength in the present system in terms of industry training provided in New Zealand, there are few areas of investment for human capital and some firm level practices which affect employability and human capital formation in future.