Underemployment vs. Unemployment | What to Know
Underemployment is an often misunderstood part of the economy. Unemployment is a term that refers to the number of people who want a job and do not have one. Underemployment represents people who are working but are not working in a job that matches their skills or abilities, often leading to earning less than what he or she should earn. When a person cannot find a job that matches their availability, skills, and experience, that is called underemployment. When considering who has a job and how many people are without one, it’s critical to understand the full picture.