Underemployment

Underemployment refers to employment that is inadequate, inferior, or low quality, relative to some standard. All researchers agree that there is a small handful of distinct types of underemployment, but there is less agreement on exactly what counts as underemployment and how many types there are. Nevertheless, the following experiences are regularly classified as underemployment:

• Overqualification: These workers possess surplus formal education; work experience; or knowledge, skills, and abilities (KSAs) relative to the job demands or requirements.
• Involuntary educational mismatch: Workers who are employed in a field outside their area of education because they cannot find employment that better matches their education. This is a distinct category from overqualification in that these employees are differently qualified, rather than overqualified.
• Involuntary part-time or temporary employment: Workers who are employed in part-time or temporary jobs because they cannot find full-time or permanent positions.
• Underpayment: The workers' wages are significantly less than a certain standard. Standards include workers' wages from previous jobs, typical wages for workers' educational backgrounds, and a livable wage.

Other types of work experiences occasionally identified as underemployment include unemployment, intermittent (un)employment (workers who either have experienced recent periods of both employment and unemployment or work on jobs that are seasonal or otherwise sporadic), subemployment (workers who are not currently employed and have ceased the job search process because they do not believe that jobs are available), and status underemployment (workers who receive less occupational prestige from their jobs than expected based on their background).