Underemployment

Underemployment, causes of underemployment, different categories of underemployment, difference between underemployment and unemployment, examples of underemployment, types of underemployment, effects of underemployment, eradication of underemployment

In the present world marked by globalization and capitalism, underemployment has become a serious issue giving birth to a lot of protests all around the globe. So, it becomes imperative to understand what this term actually entails. For example, people living in remote areas find it difficult to access jobs which will meet their economic requirement due to lack of transportation facilities.

Diverse categories of underemployment

There are mainly three categories of underemployment instrumental in the society:

  1. Highly skilled workers employed for low-income jobs.
  2. Highly skilled workers employed for jobs requiring lesser skills.
  3. Part-time workers aspiring to be employed in full-time jobs.

Difference of unemployment and unemployment

Unlike in underemployment where there is a discrepancy between the qualifications of the worker and his/her employment opportunities, unemployment essentially denotes a situation where an individual is unable to find any job in the employment sector. However, it is important to keep in mind that though the terms underemployment and unemployment are not necessarily synonymous, workers who are unemployed but are in relentless search for new jobs also comprise the category of underemployed workers.  

Types of underemployment

There is a lot of ambiguity regarding the exact rate of underemployment in the society as some do not gain visibility. Hence, there are two kinds of underemployment:

  1. Visible:  Visible underemployment occurs when people used to refer to those people who work for considerably fewer hours though they have sufficient skills and qualification to engage in a full-time working position. However, they are unable to achieve their desired employment goal which leads them to work as part-time employees. 
  2. Invisible: Invisible underemployment meaning is used to denote the segment of population who fail to explore their skills, potential and qualification to the fullest. This type of underemployment is extremely to categorize as they do not have sufficient quantitative data and remain outside the statistical visibility. It can however be measured with the help of in-depth research.
  3. Marginally attached to the labour force: This is an umbrella term used for defining the population who have the requisite qualification to work, might have looked for preferable jobs at the employment sector but due to unavailability of preferred opportunities, have become “discouraged”.

Example of underemployment

  1. An engineer working as a delivery man might be one of the most classic examples of underemployment.
  2. A graduate working as an auto-driver.
  3. Financial adviser working in a clerical position.
  4. A post-graduate in economics working as a part-time, contractual worker in a small factory.

Actual reasons behind underemployment

Underemployment can rise due to multiple factors which might range from economic to social.

Social factors behind underemployment

Low mobility at workspace. It can arise due to a lot of reasons like family system, language barrier, religious conformity as well as transportation and communication. Since in most of the employment sectors, the primary mode of communication is carried out not through vernacular languages but English, it can sometimes act as a barrier for people who might be well-versed with the language.

Economic factors behind underemployment

One of the most crucial factors behind the steady rise of underemployment lies in the relatively slow economic development. Despite having an ever-growing population, the job industry fails to provide for sufficient opportunities for the larger masses of the society. 

Industrial factors behind unemployment

The present industrial economy does not provide sufficient employment opportunities to the growing population. Stagnant industrial market also paves the way for rapid growth of underemployment.

Effects of underemployment

  • Rise in poverty level: Poverty has always been one of the major social hindrances in the path of development. Underemployment is one of the key factors in the ever-rising economic crisis in the world. People possessing the requisite skills and potential are unable to access the work sector and are thus trapped inside the cycle of poverty
  • Psychological difficulties: Mental health has become a serious concern in the present work scenario. Underemployment facilitates major psychological concerns like anxiety, stress and other health-related issues pushing a healthy individual towards a mental health crisis
  • Slow economic growth of a country: Progression of a country towards development is often characterized by economic growth. But in a country marked by underemployment, the economic pillar gets shaky. As a result, the gross national income is highly affected and faces a sharp decline

Ways of eradicating underemployment

Hence, the obvious question that will cross our mind is, can such a situation of underemployment be avoided? 

  1. During the last few decades, there has been a growing interest in the field of entrepreneurship essentially to tackle the situation of underemployment. 
  2. There should be educational policies to modify the academic curriculum in order to include the necessary skills for industrial needs.
  3. A well-developed infrastructure with proper modes of transportation and communication will allow better access to employment opportunities and reduce underemployment.

Conclusion

The term underemployment meaning is used to define a particular economic scenario where highly-skilled, overqualified professionals work for jobs which are characterized by low-income and fewer skill sets. It works as a yardstick to measure the correct utilization of labour and skills in the employment sector. 

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