Definition and measurement

Key Questions

  • Underemployment is the state of being employed at a job which is underutilizing a person's skills and experience.

    Underemployment is a significant cause of poverty, and an important measure of an economy that is missed by tradition unemployment numbers. In economics, there are three main types of underemployment:

    1. Overqualification – Having higher education, skills, or experience but working in a job that does not require them.
    2. Involuntary part-time work – When a worker would like to have full time employment but is unable to find it, and instead works part-time.
    3. Overstaffing – When businesses employ a workforce but do not fully employ them, for instance because of seasonality.

    Investopedia, Wikipedia