Underemployment: Difference between revisions

Revision as of 20:54, 9 February 2025

Underemployment

Underemployment refers to a situation in which individuals are working in jobs that do not fully utilize their skills, education, or availability. It is a significant issue in labor economics and can have various social and economic implications.

Types of Underemployment

Underemployment can be categorized into several types:

Skill-related underemployment: This occurs when workers are employed in positions that do not match their skill level or educational background. For example, a person with a degree in engineering working as a barista.

Time-related underemployment: This involves workers who are employed part-time but desire full-time work. They are willing and available to work more hours than they currently do.

Income-related underemployment: This type occurs when workers are earning less than what is considered a living wage, despite working full-time or having significant skills.

Causes

Several factors contribute to underemployment, including:

Economic downturns: During recessions, companies may reduce hours or hire overqualified individuals for lower-skilled jobs.

Technological changes: Automation and technological advancements can lead to a mismatch between available jobs and the skills of the workforce.

Structural changes in the economy: Shifts from manufacturing to service-based economies can result in skill mismatches.

Impacts

Underemployment can have several negative impacts:

Economic inefficiency: It represents a waste of human resources and potential, leading to lower productivity.

Reduced income and living standards: Individuals may struggle to meet their financial needs, affecting their quality of life.

Psychological effects: It can lead to job dissatisfaction, stress, and decreased motivation.

Measurement

Underemployment is measured using various indicators, such as the U-6 unemployment rate, which includes discouraged workers and those working part-time for economic reasons. Surveys and labor force statistics are also used to assess the extent of underemployment in different regions.

Solutions

Addressing underemployment requires a multifaceted approach:

Education and training: Providing skills development and retraining programs to align workers' skills with market demands.

Economic policies: Implementing policies that stimulate job creation and economic growth.

Labor market reforms: Encouraging flexible work arrangements and improving job matching services.

Related pages

References

"Underemployment." Wikipedia, The Free Encyclopedia. https://en.wikipedia.org/wiki/Underemployment
"Labor Force Statistics from the Current Population Survey." U.S. Bureau of Labor Statistics. https://www.bls.gov/cps/

@@ Line 1: / Line 1: @@
-'''Underemployment''' refers to the situation where individuals are working less than they would like to, or in jobs that do not fully utilize their skills and abilities. It is a significant issue in many economies, particularly during periods of economic downturn or slow growth.
+== Underemployment ==
-==Definition==
+[[File:Baristas_first_starbucks.jpg|thumb|Baristas at a coffee shop, a common example of underemployment.]]
-[[Underemployment]] is often defined in contrast to [[unemployment]]. While unemployment refers to the state of being without any work, underemployment describes the situation where individuals are working, but not to their full capacity. This can take several forms, including part-time work when full-time work is desired, or working in a job that does not fully utilize one's skills or education.
-==Causes==
+'''Underemployment''' refers to a situation in which individuals are working in jobs that do not fully utilize their skills, education, or availability. It is a significant issue in labor economics and can have various social and economic implications.
-The causes of underemployment are varied and complex. They can include economic conditions, such as a lack of available jobs, as well as individual factors, such as a lack of necessary skills or qualifications. In some cases, underemployment can also be a result of discrimination or bias in the job market.
-==Effects==
+== Types of Underemployment ==
-The effects of underemployment can be significant, both for individuals and for the wider economy. For individuals, underemployment can lead to financial hardship, as well as feelings of frustration and dissatisfaction. For the economy, underemployment can lead to a waste of human resources, with skills and abilities not being fully utilized.
-==Solutions==
+Underemployment can be categorized into several types:
-Solutions to underemployment can include policies aimed at boosting economic growth and job creation, as well as measures to improve skills and qualifications among the workforce. In some cases, addressing discrimination and bias in the job market can also help to reduce underemployment.
+* '''Skill-related underemployment''': This occurs when workers are employed in positions that do not match their skill level or educational background. For example, a person with a degree in engineering working as a barista.
+* '''Time-related underemployment''': This involves workers who are employed part-time but desire full-time work. They are willing and available to work more hours than they currently do.
+* '''Income-related underemployment''': This type occurs when workers are earning less than what is considered a living wage, despite working full-time or having significant skills.
+== Causes ==
+Several factors contribute to underemployment, including:
+* '''Economic downturns''': During recessions, companies may reduce hours or hire overqualified individuals for lower-skilled jobs.
+* '''Technological changes''': Automation and technological advancements can lead to a mismatch between available jobs and the skills of the workforce.
+* '''Structural changes in the economy''': Shifts from manufacturing to service-based economies can result in skill mismatches.
+== Impacts ==
+Underemployment can have several negative impacts:
+* '''Economic inefficiency''': It represents a waste of human resources and potential, leading to lower productivity.
+* '''Reduced income and living standards''': Individuals may struggle to meet their financial needs, affecting their quality of life.
+* '''Psychological effects''': It can lead to job dissatisfaction, stress, and decreased motivation.
+== Measurement ==
+[[File:Incidence_of_involuntary_part_time_workers.svg|thumb|Graph showing the incidence of involuntary part-time workers.]]
+Underemployment is measured using various indicators, such as the [[U-6 unemployment rate]], which includes discouraged workers and those working part-time for economic reasons. Surveys and labor force statistics are also used to assess the extent of underemployment in different regions.
+== Solutions ==
+Addressing underemployment requires a multifaceted approach:
+* '''Education and training''': Providing skills development and retraining programs to align workers' skills with market demands.
+* '''Economic policies''': Implementing policies that stimulate job creation and economic growth.
+* '''Labor market reforms''': Encouraging flexible work arrangements and improving job matching services.
+== Related pages ==
-==See also==
-* [[Employment]]
 * [[Unemployment]]
-* [[Economic growth]]
+* [[Labor economics]]
-* [[Job creation]]
+* [[Part-time work]]
-* [[Discrimination]]
+== References ==
+* "Underemployment." Wikipedia, The Free Encyclopedia. https://en.wikipedia.org/wiki/Underemployment
+* "Labor Force Statistics from the Current Population Survey." U.S. Bureau of Labor Statistics. https://www.bls.gov/cps/
 [[Category:Employment]]
-[[Category:Economics]]
+[[Category:Labor economics]]
-[[Category:Social issues]]
-{{economics-stub}}
-{{sociology-stub}}
-{{medicine-stub}}