- Definition: Underemployment is a situation where a worker is employed, but not in the desired capacity.
- This can be in terms of compensation, skill level, experience, education, or availability.
- Difference from Unemployment:
- Unemployment: Worker is not employed and actively looking for a job.
- Underemployment: Worker is employed, but their skills/potential are not fully utilized.
- Underemployed workers are not technically unemployed.