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Underemployment Rate


Definition: The underemployment rate includes people who aren't working or looking for work, but want a job, and those who are working part-time because they can't find a full-time position.

The underemployment rate is higher percentage than the unemployment rate because it includes a broader group of workers than those who are counted as unemployed. Underemployed workers may be working, but not in the capacity or at the level they desire.

A worker is considered underemployed when they are working at a job they are over-qualified for, working part-time when they would prefer full-time work, or working at a low-wage job when they could, if jobs were available, be working more hours.

Also Known As: underemployment

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