One way to loosely define the term ‘underemployment’ as it
applies to economics would be to say that it is a measure of labor utilization
and employment, specifically in regard to how well the labor force is being
utilized in terms of experience, availability, and skills.
One example from my personal life is a family member who
went to school. She has invested the equivalent of a
two-year degree in her education. This qualifies her to work in an entry level position in her chosen field. Fresh out of school she was employed
full-time by a large corporation.
Sadly, the stores she worked in were very poorly
managed, at some points she felt disregard for her health and the health of her
customers. After applying to local salons, she was promptly turned away with
elitist attitudes and given the impression she wasn’t good enough to work for a
high-end salon. Completely discouraged by these experiences, she has decided to
abandon her chosen field, for the moment.
This has left her with part-time employment by another corporation, even though she was seeking full-time work, and has asked repeatedly
for more hours. She makes minimum wage, regardless of her college-level
education. She is very highly regarded among her coworkers and management,
and has been praised for her leadership and customer service skills. She has
been seeking other employment, but from time to time her managers let her know
that she is being “considered” for a service desk position. This would be a
position that brings home a few more cents per hour, but no more hours per week.
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