Underemployment

Definition

Underemployment occurs when a worker is employed in a job that does not fully utilize their skills, experience, or education. It can also refer to situations where individuals work fewer hours than they would prefer.

Related terms

Labor Force Participation Rate:

The percentage of the working-age population that is either employed or actively looking for work.

Unemployment:

The situation in which an individual who is capable of working and willing to work does not find a job.

Job Satisfaction: A measure of how content an individual is with their job, which can be affected by factors including utilization of skills and number of work hours