What is the Difference Between Unemployment and Underemployment?
🆚 Go to Comparative Table 🆚Unemployment and underemployment are both terms related to the labor market, but they have distinct differences:
- Unemployment refers to the number of people who want a job and do not have one. These individuals are often actively looking for work but have not been able to find a suitable position.
- 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 they should earn. Underemployed individuals may have jobs, but they may not be utilizing their full potential or working in a position that aligns with their qualifications.
Some examples of underemployed individuals include:
- Someone who wants to work at a full-time job but takes a part-time position instead.
- A person with a master's degree in finance who is working as a cashier at a retail store.
- An individual who is working part-time but would prefer a full-time job.
In summary, the main difference between unemployment and underemployment is that unemployed individuals do not have a job at all, while underemployed individuals have jobs that do not fully utilize their skills and abilities.
Comparative Table: Unemployment vs Underemployment
Here is a table comparing the differences between unemployment and underemployment:
Unemployment | Underemployment |
---|---|
Refers to individuals who do not have a job but are actively searching for one | Refers to individuals who have a job but do not work as many hours or earn as much as they would like, or their skills are not fully utilized |
Measured using the unemployment rate, which represents the number of jobless individuals in the labor force | There is no distinct measure for underemployment, as it is difficult to measure due to the invisible nature of the concept |
Unemployed individuals are not working at all | Underemployed individuals are working, but not in a job that matches their skills, abilities, or experience |
May result from a poor economy or scarcity of jobs in the market | May result from a mismatch between the availability of job opportunities and the availability of skills and education |
In summary, unemployment refers to individuals who do not have a job and are actively searching for one, while underemployment refers to individuals who have a job but do not work as many hours or earn as much as they would like, or their skills are not fully utilized. Unemployment is measured using the unemployment rate, whereas there is no distinct measure for underemployment.
- Disguised vs Seasonal Unemployment
- Self Employed vs Employed
- Laid Off vs Fired
- Work vs Job
- Depression vs Recession
- Terminated vs Laid Off
- Deflation vs Recession
- Wage vs Income
- Poverty vs Inequality
- Inflation vs Recession
- Malnutrition vs Undernutrition
- Career vs Job
- Scarcity vs Shortage
- Salary vs Wages
- Salary vs Income
- Recruitment vs Hiring
- Remuneration vs Salary
- Job Enlargement vs Job Enrichment
- Part Time Job vs Casual Job