“This is a form of unemployment in which the persons willing to ...
Under Employment occurs under two conditions: When the persons willing to work for full time are hired only for part-time work. Also referred to as the ‘Visible Under Employment’. When a person is compelled to do a job below his qualification. For example, an engineering graduate working in a call centre. Also referred to as the ‘Invisible Under Employment’.
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“This is a form of unemployment in which the persons willing to ...
Under Employment
Under employment is a situation where individuals who are willing to work full-time are only able to find part-time employment. This results in these individuals not being able to fully utilize their skills and capabilities, leading to lower productivity in the economy.
Characteristics of Under Employment:
- Individuals are willing to work full-time but can only find part-time work.
- These individuals are often not able to earn enough income to support themselves or their families.
- Under employment can lead to lower job satisfaction and a feeling of underutilization of skills.
Causes of Under Employment:
- Economic slowdown: During periods of economic downturn, many companies may only be able to offer part-time positions.
- Lack of suitable jobs: Sometimes individuals may not be able to find full-time jobs in their area of expertise, leading to under employment.
- Seasonal work: Certain industries may only have part-time positions available during certain times of the year.
Impact of Under Employment:
- Lower economic growth: Under employment can lead to lower productivity and economic growth in the long run.
- Poverty and inequality: Individuals who are underemployed may struggle to make ends meet and may be more susceptible to falling into poverty.
- Social unrest: Persistent under employment can lead to social unrest and dissatisfaction among the population.
In conclusion, under employment is a situation where individuals who are willing to work full-time are only able to find part-time work, leading to lower productivity and economic growth. Addressing under employment requires targeted policies to create more full-time job opportunities for those who are currently underemployed.