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Underemployment

Updated September 30, 2025

What is Underemployment?

Underemployment occurs when individuals work in jobs that do not fully utilize their skills, or when they work fewer hours than they would like.


Why Does Underemployment Matter?

It reduces income, job satisfaction, and economic productivity.


Key Elements of Underemployment

  • Skill Underuse – Roles not matching qualifications.
  • Involuntary Part-Time – Fewer hours than desired.
  • Overqualification – Employees working below skill levels.

The Role of Underemployment in Career Development

It highlights the need for better job matching and continuous upskilling.


Common Challenges with Underemployment

  • Frustration and disengagement.
  • Limited career growth.
  • Financial instability.

Best Practices for Addressing Underemployment

  • Identify transferable skills.
  • Pursue continuous training.
  • Employers should improve job design.

Future of Underemployment

AI-driven job matching will help reduce underemployment globally.


Summary

Underemployment reflects mismatches between skills, hours, and job roles.


Key Takeaways

  • Reduces satisfaction and productivity.
  • Requires upskilling and better matching.
  • AI will play a key role in solutions.

Take Action Today

Feeling underemployed?
👉 Use Resumly’s Skills Gap Analyzer to find growth opportunities.