Definition
Underemployed describes a worker who is employed but not in a job that fully uses their skills or desired hours, such as working part-time when they want full-time or working below their qualification level.
Why It Matters
Underemployment indicates hidden slack in the labor market and can reduce income, productivity, and long-term career growth.
Example
A college graduate working a part-time retail job because they cannot find full-time work in their field is underemployed.