Most graduates aspire to get a job within the field they studied and often grow within the field. Depending on how fortunate one is, it may not always be the case. What then is underemployment and what are the causes as well as effects on employees?
What is underemployment?
Underemployment occurs when an individual is in a position that doesn’t fully utilize their skills, qualifications and experience. This is when an employee who works in a position unwillingly finds himself/herself in a position that is paying a lower salary in comparison to their skills and experience. There are two types of underemployment, visible and invisible.
- Visible underemployment refers to a situation where an employee works a limited number of hours in a specific field.
- Invisible underemployment occurs when an employee works in a different field in comparison to their skills and technical know-how.
What are the Causes
Inability to find a job due to high unemployment rates leads to underemployment. Job seekers take up any jobs available in order to make ends meet. The lack of entry-level positions in some industries makes it difficult for graduates to secure employment thus settling for any job that can keep them busy. Underemployment is prevalent in countries with high unemployment rates, especially during a recession. Furthermore, when employees lose jobs as a result of retrenchments or contracts not being renewed, they also actively look for jobs that can help them put food on the table. In addition, underemployment occurs when there is an oversupply of the same skills in the market, the more graduates in the market in the same field, the harder it becomes for to get a job as the demand is low in a specific industry. Lastly, technological advances may have consequences on employee jobs
Effects on Underemployment
Underemployment, like unemployment, has dire consequences on one’s career. An underemployed individual misses out on the opportunity to acquire skills in their field and at times may struggle to find a job in their field of study. For others, it means that they are paid lower salaries as they can not be paid on the basis of their current qualifications. At times, others find themselves changing careers unwillingly in order to avoid being underpaid for a very long time. Underemployment can also affect one’s lifestyle as individuals may live below the poverty line in order to sustain themselves. For graduates, they are likely to not be exposed to jobs that can increase their knowledge and skills and at times even miss out on networking opportunities with experts in their field who may be beneficial in terms of mentoring and coaching. This is often referred to as structural unemployment. Underemployment can cause psychological issues among people, mental health issues such as depression may arise. For those employed, job satisfaction may not be the case and can result in disengaged employees.
Avoiding Underemployment
One can opt to not apply for a job in a specific field which at times may be tough given the current economic downturn. What is important to note is that the longer you stay in a role in which you may not be utilizing your skills, the longer it will take for you to get a job in that field. Employers should also take into consideration that, when offering opportunities to those who may be “overqualified”, they should also provide them with career advancement opportunities.