How is hidden unemployment different from underemployment?

1 Answer
Nov 29, 2015

Underemployment is when one is overqualified, but hidden employment is where one is not considered unemployed, but has no job.


Underemployment describes when a worker is working in a less that ideal situation, and in which they are typically overqualified. For instance, an underemployed worker could be one who has a business degree but works as a cashier. Or, it could be one who who wants to work full-time, but can only work part-time.

Hidden unemployment refers to the people who do not have jobs, but are not technically considered unemployed because of the standards. For example, if I lose my job, look for a job for a few weeks, and then stop looking, after a period of time passes, I will no longer be considered unemployed because I am a discouraged worker, and have stopped looking.