What is underemployment?

1 Answer
Mar 4, 2015

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.

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