What is Under Employment?

Q.  What is Under-employment?
- Published on 03 Oct 16

a. Too many people for a job
b. Doing work inferior to one’s capacity and qualification
c. Employing less people for a job thus overloading the workers
d. Paying less for a job worth more

ANSWER: Doing work inferior to one’s capacity and qualification
 
  • Underemployment refers to a job that is insufficient in some important way for a worker, relative to a standard, which results in the under-utilization of the worker.
  • Examples include holding a part-time job despite desiring full-time work, and over qualification, where the employee has education, experience, or skills beyond the requirements of the job.
  • It means under-utilization of labour which is missed by most official (governmental agency) definitions and measurements of unemployment.
  • This is an important factor to consider since there is skill development drive going on in India. There must be enough jobs to cater to skilled workforce.

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