People Analytics Helps Define the Search for Skilled Labor
4 Aug 2019
The analysis of human capital flows across markets and regions measures how, why, and where talent and skill clusters are creating and supporting sustainable market strength.
Gross domestic product (GDP) measures raw economic activity and has been used as a leading indicator of the growth and performance of an economy for the last 70 years. In a digital and globally interconnected world, GDP is not a complete picture of economic indicators of progress or predictive growth from market to market. The architect of GDP, Simon Kuznets, recognized the limitations of GDP. The Economist (2016) reported that GDP uses a statistical framework that is no longer an adequate measure of a performing market, especially when it comes to people analytics.
Whereas GDP tracks and measures markets based on manufacturing activities revolving around the import/export and consumption of products, it is critical to recognize that technology innovation is driving and creating new economies through the digitization, distribution, and consumption of explosive volumes of data. Understanding the interrelationships and interdependencies of new service-based economies requires geographically- driven analysis of human capital based on the availability, cost, and sustainability of labor, especially technology talent and skill clusters.