Underemployment refers to the situation wherein individuals are less than fully employed. An underemployed person works for a lesser duration of time than what he actually can.
Underemployment Definition
This refers to the situation wherein individuals are less than fully employed. An underemployed person works for a lesser duration of time than what he actually can. In this sense, we say that the person remains unemployed for some hours every day, or for some months of the year. According to the data given by the National Sample Survey, “extreme underemployment” refers to the situation wherein a person works for 28 hours a week, while “limited underemployment” refers to the situation wherein a person works for 20–42 hours a week.
Types of Underemployment
The following are two types of underemployment that can be identified.
Visible underemployment
This refers to the situation in which people work for less than the normal hours of work. For example, suppose the normal working hours in a particular country is 9 hours per day. Now, if a person involuntarily works for only 5 hours, then he will be in visible underemployment.
Invisible underemployment
This refers to the situation in which a person is engaged in work that does not fully utilize his ability. In other words, this situation exists when people do not get work according to their qualifications and skills.
For example, suppose a person holding a postgraduate degree gets work that is suitable for a graduate, then he will be in invisible underemployment. That is, underemployment exists but is not visible to people.
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What is Informalisation of Workforce?
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In formalization of the workforce refers to the situation wherein there is a continuous decline in the percentage of the workforce in the formal sector and a simultaneous rise in the percentage of the workforce in the informal sector. The workforce can also be divided into individuals working in the informal sector and individuals working in the formal …
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