Economics Unemployment Questions Medium
Underemployment refers to a situation where individuals are employed but their skills, education, or experience are not fully utilized, resulting in lower productivity and lower wages than what they are capable of earning. It is a condition where workers are working fewer hours than they desire or are overqualified for their current job. Underemployment can also occur when individuals are working in jobs that do not match their skill set or educational background. This concept is often used to measure the extent to which the labor market is not fully utilizing its available resources. Underemployment is a significant concern as it can lead to reduced economic growth, lower living standards, and increased income inequality.