a condition that exists when workers earn less than their potential; an indication that qualified workers may be enticed by a pay increase offer to move from one job to another or from one employer to another; therefore, underemployed workers should be included in labor pool numbers as well as those for a laborforce and workforce in an area see demographics in Economic Development.net definition of underemployment defined definition of under-employment defined definition of underemployed defined definition of under employed defined
A condition among a labor force such that a portion of the labor force could be eliminated without reducing the total output. Some individuals are working less than they are able or want to, or they are engaged in tasks that are not entirely productive.
In economics, the term underemployment has at least three different distinct meanings and applications. All three of them involve underutilization of labor that critics say is missed by most official (governmental agency) definitions and measurements of "unemployment."