ENNowadays competitive economy is considered as a primary objective of any country, because in the long term enhanced competitiveness leads to an increase of productivity and creation of new jobs and improves the quality of life. Competitiveness is a multidimensional and dynamic phenomenon, shaped by a number of different factors, including the human capital understood as a set of knowledge, skills and competencies of employees and their professional experience. The purpose of this article is to present the importance of human capital as a factor determining the level of competitiveness of the economies of the Baltic States. For the analysis of changes in the competitiveness of Lithuania, Latvia and Estonia in the period 2006–2015 international competitiveness rankings compiled by the World Economic Forum were used.