What is Underemployment?
Underemployment is a term that describes the situation of workers who are employed below their potential. Underemployment can take different forms, such as:
- Involuntary part-time work: This occurs when workers want to work full-time but can only find part-time jobs due to economic conditions or employer preferences.
- Overqualification: This occurs when workers have more education, skills or experience than required for their current jobs.
- Low income: This occurs when workers earn less than a living wage or a poverty threshold, regardless of their hours or qualifications.
- Underutilization: This occurs when workers are not fully using their skills or abilities in their current jobs, such as performing tasks that are below their level of competence or interest.
Underemployment can have negative consequences for both individuals and society. For individuals, underemployment can lead to:
- Reduced income and financial security
- Lower job satisfaction and morale
- Lower self-esteem and confidence
- Higher stress and health problems
- Reduced career opportunities and advancement
- Lower productivity and performance
For society, underemployment can lead to:
- Lower economic growth and output
- Higher unemployment and welfare costs
- Higher inequality and social problems
- Lower human capital and innovation
- Lower tax revenues and public services
Underemployment is a complex and multifaceted phenomenon that can be influenced by various factors, such as:
- Labor market conditions and demand
- Education and training systems and policies
- Social norms and expectations
- Personal preferences and choices
- Discrimination and barriers
Underemployment is not always easy to measure or identify, as different definitions and indicators can be used. Some common measures of underemployment include:
- The underemployment rate: This is the percentage of employed workers who are underemployed according to a specific criterion, such as working part-time involuntarily or being overqualified.
- The underemployed population: This is the number of employed workers who are underemployed according to a specific criterion.
- The underemployment gap: This is the difference between the actual hours worked by underemployed workers and the hours they would like to work or are qualified to work.
Underemployment is a challenge that requires coordinated and comprehensive solutions from various stakeholders, such as:
- Governments: They can implement policies and programs that create more and better jobs, improve education and training systems, support workers' rights and benefits, reduce discrimination and barriers, and provide social protection and assistance for underemployed workers.
- Employers: They can offer more flexible and diverse work arrangements, provide fair compensation and benefits, invest in skill development and career progression, recognize and utilize workers' potential, and foster a positive and inclusive work culture.
- Workers: They can seek opportunities to enhance their skills and qualifications, explore alternative or additional sources of income, network and communicate with employers and peers, express their needs and preferences, and advocate for their rights and interests.
Underemployment is a reality that affects many workers around the world. By understanding its causes, consequences, measurement, and solutions, we can better address this issue and improve the quality of work and life for everyone.