Underemployment (Origin, Effects, Categories and Causes)

Underemployment refers to a type of phenomenon that happens within the labor market, once employees work less hours when performing work that has lower economic levels and less productive in order to avoid the unemployment.

This results in the decrease in workers' income below the capacities that can be achieved under normal conditions. This phenomenon is usually due to the modification of the labor demand or the lack of training in different types of jobs.

In the economic area, underemployment refers to all kinds of situation governed by the economy where a system of jobs that are available is not fully used.

Origin of underemployment

This phenomenon originates due to different factors, despite being considered as an anomaly that is incorporated into society by distorting the labor market and, in turn, unstable employment conditions.

As a consequence of this, the workers who are affected do not have the possibility of assuming the corresponding positions according to their experience, training and that is why in the end they end up accepting to work in positions lacking prestige and remuneration correct.

Due to this distortion that the labor market presents due to the lack of jobs, underemployment falls on a great instability or crisis that leads to the lack of organization of a country, to the lack of capital to increase the economy and to the reduction of capacities of the companies.

By virtue of this, the Government has the duty to provide adequate jobs according to its capabilities and that is why today, the Governments of certain countries apply some measures in order to limit training in certain professions depending on the number of job positions available to them.

Effects of underemployment

The effects of underemployment generates anguish and distress to anyone who has just graduated, to immigrants and especially to people who want to work to pay off their large debts, and who are the ones who mostly accept jobs in companies where they do not fully apply their talent and have no stability in their contracts labor.

Due to the fact that recent graduates, although they have the degree, do not have the experience and immigrants to accredit their degrees have to go through a slow process and costs, They end up accepting underemployment in order to cover their needs and they only have to hope to find a position that is in line with their capabilities that will generate the benefits that wish.

Categories of underemployment

For the International Labor Organization, underemployment is the duration or labor productivity that some people accept below their professional level. Because of this, they define that the labor nature should be as productive as possible and that the choice of employment must be totally free and in turn the worker has the possibility of having good training.

With this definition, the following categories can be distinguished:

Underemployment due to insufficient hours

This happens when taking into account a short reference time if the worker works fewer hours even when he wants to work more and have the availability to do so. This leads the person to look for another job that has more working hours or to find another additional job. Given this, it can be said that the employee is classified as underemployed.

Underemployment due to inadequate work situations

A job is classified as inadequate when its reference period is short and if the employee manifests a job change if he has limitations in his abilities and his well-being. In this sense, two types of criteria can be mentioned:

• Underemployment due to skills: It refers to the change that the employee wants to make, since he considers that his professional level is being used in an inappropriate way.
• Income underemployment: It is generated when the employee is willing to change jobs, because he realizes that he does not obtain the income he needs to survive.

Causes of underemployment

Among the causes of this type of phenomenon we can mention those that we will show you below:

• The professional preparation of the population does not have the corresponding adjustment to job offers.
• The migration of people to the capital in search of job opportunities to improve their quality of life, which end up absorbed by informality.
• People's fear of the responsibilities generated by jobs that require formality.
• The lack of information in relation to the political systems of the States to facilitate jobs.
• Deficiency in relation to the labor supply that maintains the active population economically, which determines a low level of employment.
• Lack of application or delays in the proportion of jobs by State policies.
• The ease of acquiring greater income through the trade of products, this being totally different from professional training.

Examples of underemployment

Within this phenomenon there are manifestations of informal employment, especially in cases where some nations make a strong intervention in order to improve the quality of life of workers.

Many times underemployment becomes a serious problem, especially if an economic crisis arises where workers with less economic capacity are the most affected. Some examples that can be mentioned about this underemployment problem are:

• When a doctor changes the light bulbs inside the hospital where he works.
• If a mother who has finished her period of rest, she does not have someone to take care of her child and she is forced to reduce her working hours.
• Housekeepers who usually don't work their full 35 hours.
• In the case of a pilot who has to work as a taxi driver.
• When an engineer obtains a minimum wage by participating in a state hydraulic work project.
• Teachers who receive a very low income for their professional level.

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