What Is Underemployment?

Underemployment is a measure of employment and labor usage in the economy that examines how well the labor force is utilized in terms of skills, experience, and availability to work. Employees who are highly trained yet work in low-paying or low-skill occupations, as well as part-time workers who would prefer to work full-time, are classed as underemployed. This differs from unemployment in that the individual is employed but not to their full potential.