Unemployed vs. Underemployed — What's the Difference?
Edited by Tayyaba Rehman — By Fiza Rafique — Published on October 5, 2023
Unemployed refers to individuals without a job seeking employment, while Underemployed denotes those working below their skill level or part-time when desiring full-time work.
Difference Between Unemployed and Underemployed
Table of Contents
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Key Differences
Economists and policymakers closely monitor both Unemployed and Underemployed rates. While the Unemployed rate gives a direct indication of the job market's health, the Underemployed rate can hint at potential inefficiencies or mismatches in the labor market. Both play a role in shaping labor policies and economic strategies.
Fiza Rafique
Oct 05, 2023
Unemployed is a term that directly describes individuals who currently do not have a job but are actively looking for one. These individuals might have lost their jobs, just entered the job market, or returned after a hiatus. In contrast, Underemployed individuals do have jobs. However, their employment doesn't align with their qualifications, skills, or experience, or they might work fewer hours than desired.
Fiza Rafique
Oct 05, 2023
While both Unemployed and Underemployed conditions suggest labor market challenges, they reflect distinct scenarios. Being Unemployed means a complete absence of employment, typically accompanied by a search for work. Meanwhile, being Underemployed often implies dissatisfaction with one's current employment situation due to overqualification or insufficient hours.
Fiza Rafique
Oct 05, 2023
A significant difference between the two is the economic impact. While both conditions aren't ideal, the Unemployed usually face immediate financial challenges due to a lack of income. On the other hand, the Underemployed might have some income but are likely not realizing their full earning potential.
Fiza Rafique
Oct 05, 2023
Comparison Chart
Definition
Lacks a job and is seeking employment
Has a job, but below skill level or desired hours
Fiza Rafique
Oct 05, 2023
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Reasons
Job loss, entering/re-entering workforce
Mismatched skills, insufficient work hours
Fiza Rafique
Oct 05, 2023
Economic Impact
Direct impact on unemployment rate
Reflects inefficiencies in labor market
Fiza Rafique
Oct 05, 2023
Definitions
Unemployed
Has no employment but is actively job-hunting.
The Unemployed rate in the country has been rising.
Fiza Rafique
Sep 27, 2023
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Underemployed
Workers not realizing their full professional potential.
Despite his Master's degree, he feels Underemployed at the retail store.
Fiza Rafique
Sep 27, 2023
Unemployed
Not engaged in gainful employment but seeking.
Despite his qualifications, he remained Unemployed.
Fiza Rafique
Sep 27, 2023
Underemployed
Employment that doesn't utilize a person's skills or qualifications.
Working part-time when desiring full-time work can be considered Underemployed.
Fiza Rafique
Sep 27, 2023
Unemployed
Lacks a job and is in search of one.
The downturn led to many skilled workers being Unemployed.
Fiza Rafique
Sep 27, 2023
Underemployed
Employed below one's skill level or desired hours.
Many graduates find themselves Underemployed in unrelated fields.
Fiza Rafique
Sep 27, 2023
Unemployed
Individuals without jobs actively seeking work.
After the factory closure, many became Unemployed.
Fiza Rafique
Sep 27, 2023
Underemployed
Holding a job that doesn't match one's expertise or aspirations.
Earning less than one's qualifications warrant signifies being Underemployed.
Fiza Rafique
Sep 27, 2023
Unemployed
People not currently in employment but looking.
She became Unemployed after moving to a new city.
Fiza Rafique
Sep 27, 2023
Underemployed
Engaged in work that's inferior to one's potential or training.
She felt Underemployed in her clerical position after years of managerial experience.
Fiza Rafique
Sep 27, 2023
Underemployed
Employed only part-time when one needs and desires full-time employment.
Fiza Rafique
Sep 26, 2023
Underemployed
Employed at a low-paying job that requires less skill or training than one possesses.
Fiza Rafique
Sep 26, 2023
Unemployed
People who are involuntarily out of work considered as a group. Used with the.
Fiza Rafique
Sep 26, 2023
Unemployed
Having no job despite being able and willing to work.
The government announced a new initiative to help the unemployed.
Fiza Rafique
Sep 26, 2023
Underemployed
Employed in a job that offers fewer work hours than desired.
I found myself underemployed when the company downgraded me from full-time to part-time.
Fiza Rafique
Sep 26, 2023
Underemployed
Employed only part-time when one needs full-time employment or not making full use of your skills;
Migrants are likely to be poor and underemployed
Able people are kept underemployed
Fiza Rafique
Sep 26, 2023
Unemployed
Not engaged in a gainful occupation;
Unemployed workers marched on the capital
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Sep 26, 2023
FAQs
Does being Underemployed mean you work part-time?
Not always; it can mean working part-time when desiring full-time or working below one's skill level.
Fiza Rafique
Oct 05, 2023
How does being Underemployed impact the economy?
It can reflect inefficiencies in the labor market and lead to reduced earning potential.
Fiza Rafique
Oct 05, 2023
What does being Unemployed signify?
Unemployed refers to individuals without a job who are actively seeking employment.
Fiza Rafique
Oct 05, 2023
Can someone be considered Unemployed if they're not looking for a job?
Typically, to be considered Unemployed, one must be without a job and actively looking.
Fiza Rafique
Oct 05, 2023
How does Underemployed differ from Unemployed?
Underemployed individuals have jobs but work below their skill level or desired hours.
Fiza Rafique
Oct 05, 2023
Is the Unemployed rate a complete measure of job market health?
No, considering both Unemployed and Underemployed rates provides a more comprehensive view.
Fiza Rafique
Oct 05, 2023
Can a highly educated individual be Underemployed?
Yes, if they work in a role that doesn't utilize their education or skills.
Fiza Rafique
Oct 05, 2023
Author Spotlight
Written by
Fiza RafiqueFiza Rafique is a skilled content editor at AskDifference.com, where she meticulously refines and enhances written pieces. Drawing from her vast editorial expertise, Fiza ensures clarity, accuracy, and precision in every article. Passionate about language, she continually seeks to elevate the quality of content for readers worldwide.
Edited by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
