underemployment
uhn-der-im-PLOY-munt
/ˌʌndərɪmˈplɔɪmənt/
The condition in which workers are employed below their skill levels, or work part-time hours when they desire full-time work.
Focuses on inefficiency in human capital usage, where official low unemployment stats hide underutilized skills or hours.
The story behind the word. Formed in 20th-century labor economics by prepending 'under-' to 'employment' to describe workers placed BELOW their educational qualifications or desire for work.
Word relationships
- labor underutilization: Labor underutilization is the broader formal statistical measure encompassing unemployment, underemployment, and discouraged workers.
- disguised unemployment: Disguised unemployment occurs when excess workers are present in a job without adding extra net productive output.
- full employment: The state where all available labor resources are utilized efficiently in suitable roles.
Commonly confused with
- unemployment: Unemployment means having no job at all; underemployment means having a job that is insufficient in hours, pay, or skill utilization.
Word family
- underemployed (adjective): Working in a job that does not full utilize one's skills or provide full-time hours.
Collocations
- rate of underemployment
- widespread underemployment
- underemployment gap
- youth underemployment
Example sentences
- "While headline unemployment figures fell to historic lows, severe underemployment remained a hidden drag on total earnings." Macroeconomic Policy
- "Many university graduates experience underemployment during their first post-graduation years, taking retail jobs while hunting for corporate work." Higher Education Debate
Memory hook
UNDERemployment means working UNDER your true skill capabilities. Underemployment = Employed BELOW capability or desired hours.
When not to use
Do not confuse with complete unemployment, which means having zero paid work.
Fun facts
- In economic statistics, the 'U-6 rate' measures both traditional unemployment and underemployment combined.
Related words
Explore more words
Unemployment, underfunded, moonlighting, underprivileged, inefficiency, underserved
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