Purpose. This article examines how education enhances human capital and contributes to economic and social progress. By fostering skills development, knowledge transfer, and adaptability, education increases workforce productivity and supports innovation. Individuals with higher education levels tend to achieve better employment outcomes, higher earnings, and improved health and well-being. Education has broader societal benefits, such as promoting civic participation and reducing crime. However, unequal access to quality education can deepen income inequality. The paper highlights the importance of continuous learning and inclusive educational policies as essential tools for building a skilled, adaptable labour force and driving sustainable economic development. Design/methodology. The conceptual objective of this paper is to outline the original approach to the multifaceted role of education in human capital holistically shaping. Justification of the long-term effects of educational reforms; the impact of education on labour market and social integration; the significance of transversal skills in the digital economy; institutional and regional factors influencing educational outcomes are the tasks on the path to objective. Findings. Critical analysis of a concept using the literature as data and hybrid descriptive method with narrative literature review were implemented for assigned tasks realization. Offered study positions education not only as a private investment but as a foundational driver of inclusive and sustainable socioeconomic development. Originality. The reviewed literature provides robust evidence that education plays a transformative role in human capital development, but the magnitude and nature of its effects vary substantially depending on socioeconomic context, policy design, and institutional capacity. The activities described in this article point to the limitations of formal access-focused policies if they are not accompanied by targeted support mechanisms and institutional reforms.