Underemployment
AdvancedUnderemployment is a situation in which people are working, but not as much as they would like, or in jobs that do not make full use of their skills, education or experience.
The official unemployment rate counts only people without any job who are actively looking for work. Underemployment captures other forms of slack in the labour market.
There are two main types. Time-related underemployment includes part-time workers who want and are available for more hours. Skill-related underemployment includes people working in jobs below their qualifications, such as a university graduate in a role that does not require a degree.
For example, someone working 15 hours a week in a shop because they cannot find full-time work is underemployed, even though they count as employed in the unemployment rate.
Underemployment often rises during and after recessions, when employers cut hours or hire fewer full-time staff. It means the labour market may be weaker than the headline unemployment rate suggests. Statistical agencies publish broader measures of labour underutilisation that include part-time workers wanting more hours and people who want work but have stopped looking.
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