The author identifies the level of human capital development in Serbia, then he analyses the limitations of human capital development, and finally he proposes measures and activities needed for the improvement of human capital. The aim is to pave the way for human capital development in Serbia. Research uses the inductive and deductive methods, analysis and synthesis, statistical and comparative method. Human capital is viewed through four key components: education, health, work and socioeconomic environment. The level of human capital development in Serbia was identified through the prism of Human Capital Index from Human Capital Report of the World Economic Forum. Human capital development is observed in the context of economic growth speed. The conclusion of the paper is that human capital in Serbia is at a low level and that its improvement requires reform of education and health, employment growth, labour market reform and good socioeconomic environment.

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