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Underemployment

- Underemployment is defined as an inferior, lesser, or lower quality type of employment. It

is an involuntary employment condition where workers are in jobs, either part-time or full-time,
in which their skills, including formal and work experience training, are technically underutilized
and thus undervalued relative to those of other individuals of similar ability who have made
equivalent investments in skill development. There are three basic components make up this
underemployment (Glyde, 1977). The first component refers to part-time work where full-time
work is desired by those individuals involved. A second type of underemployment refers to
discouraged workers, that is, workers who have dropped out of the labor force and therefore
are not counted officially as being unemployed but who would seek work if they thought it were
available. The final component has to do with inadequacy of earnings in employment. These
three components have been added to the regular unemployment statistics to provide an index
which more truly reflects underutilization in the labor force. In addition, underemployment
occurs because an individual's skills: (1) Exceed the current technical skill requirements of the
job that he/she performs, (2) Match the current technical requirements of the job that he/she
performs, but the rate of pay is less than for the reference group, and (3) Exceed the current
technical skill requirements of the job that he/she performs where this mismatch is typical for
the occupational reference group as well.

Job Satisfaction

- College graduates typically take some time transition into the labor market to be
prepared and well-trained before finding jobs that utilize their education. An individual must
feel the happiness and satisfaction in their job to have the motivation they need to perform
well. And as an underemployed, some cant get the satisfaction they need because
underemployment has a lot of negative effects on them. Employment insecurities and are some
of the reasons why behavioural disorder rate is increasing and why job satisfaction is also being
affected, in terms of their job does not afford them the opportunity to put their skills and
training to use and provides less occupational status than expected on the basis of their
background.

Job Opportunities

Labor market

Job search methods

Economic Growth