What is underemployment

Underemployment is a non-full-time occupation, with a remuneration below the minimum wage and that does not take advantage of the worker’s capabilities. The most common underemployment job is selling things on the street.

In the area of ​​economics, underemployment is the situation of an economy in which the available job capacity is not fully utilized.

Underemployment is a subcategory of the employed populationwhich can be evidenced in 3 cases: due to competition, insufficient hours and income. In the case of underemployment due to competition, results when a person with experience and training occupies minor positions, with lower remuneration and not related to their area of ​​study and capacity, for example: the doctor or lawyer who ends up working as a taxi driver. In reference to underemployment due to insufficient hours, is characterized because the employer does not work regularly and for a minimum number of hours per week, generally the minimum hours per week are 40 hours, therefore, they work less than that stipulated by legislation. In the last case, income underemployment It is identified when the income is not sufficient for the position held.

Likewise, it can be added as another case of underemployment when the worker cannot be employed for a longer period of time. In the same way, it happens when a person starts in a company with a minor position while training and obtaining a degree in the same position. Similarly, a worker who wishes to remain underemployed, should not technically be called underemployment but rather an employed individual who has a function different from the average that exists in the economy. Also, underemployment allows the worker to increase his employment time because he does not work the full working day and can look for another job and, in this way, obtain another economic income that allows him to fulfill his obligations at home.

Underemployment originates due to the distortions it presents in the labor market and, due to the lack of employment. Underemployment is evident in times of crisis, in which a country lacks labor organization, capital to revive the economy, and lack of business capacity. By virtue of the above, the government cannot provide all its inhabitants with a job appropriate to the capabilities they present. Currently, the governments of some countries use measures to limit the training of people in a certain career based on the number of jobs available, for example: obtaining certain qualifications to apply for the intended career, requiring a long list of requirements that not all individuals can obtain, as well as these many more.

Underemployment is distressing or distressing for immigrants, recent graduates and people with high debts to pay since they are the ones who accept this proposal even though the company does not fully use their talent and does not have a stable employment contract. This is because immigrants must go through a slow and expensive process to homologate or accredit their degrees from their country; recent graduates, despite having a degree as a result of years of study, lack experience in the field. area, therefore and, by virtue of satisfying their needs and that of their family, they accept to be underemployed until they obtain a position suitable for their abilities and can enjoy all the benefits.

Difference between Underemployment and Unemployment

Underemployment It is an inadequate job in which the company does not use the worker’s capabilities and is characterized by working fewer hours and receiving remuneration below the minimum. At the same time, Unemployment It is a forced stoppage. It is the situation of an individual who lacks employment, that is, a job and, therefore, a salary.

See also Unemployment.