2nd October 2019

investopedia
13

What do you mean by disguised employment?

Disguised unemployment exists where part of the labor force is either left without work or is working in a redundant manner where worker productivity is essentially zero. An economy demonstrates disguised unemployment when productivity is low and too many workers are filling too few jobs.

Consequently, what is an example of underemployed?

Underutilization of skills. In one usage, underemployment describes the employment of workers with high skill levels and postsecondary education who are working in relatively low-skilled, low-wage jobs. For example, someone with a college degree may be tending bar, or working as a factory assembly line worker.

Why is underemployment a problem?

Underemployment is a social problem that affects job growth, poverty levels, business growth, career growth, and the emotional health of underemployed workers. Therefore, workers have a tendency to spend less, which impacts business growth, poverty levels, and the underemployed worker's emotional outlook.

What is the underemployment rate?

The U.S. unemployment rate was 4.7% as of May 2016, but at the same time, the U.S. underemployment rate was 13.7%. The unemployment rate is defined by the Bureau of Labor Statistics (BLS) as including "all jobless persons who are available to take a job and have actively sought work in the past four weeks."
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