Describe the concept of underemployment.

Economics Unemployment Questions



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Describe the concept of underemployment.

Underemployment refers to a situation where individuals are employed but are not fully utilizing their skills, education, or experience, or are working fewer hours than they desire. It is a form of disguised unemployment, where individuals are technically employed but are not able to reach their full potential or earn a sufficient income. Underemployment can occur due to various reasons such as a lack of job opportunities, mismatch between skills and available jobs, or economic downturns. It is often measured by the underemployment rate, which includes individuals who are working part-time but desire full-time employment or those who are overqualified for their current job.