Underemployment is more than a statistic, and in the US it ranged from 5.9% of workers in 2023 to 8.8% of the labor force in February 2024, meaning millions of people are working too few hours, cannot find full time work, or remain stuck in labor market limbo.
Key Takeaways
- In the US, 5.9% of workers were underemployed in 2023 (a measure that includes involuntary part-time workers and those who want full-time work).
- In the US, underemployment (official BLS U-6) affected 8.8% of the labor force in February 2024.
- In the US, underemployment (official BLS U-6) was 9.1% in October 2023.
- In the OECD, the employment-to-population ratio (part of underemployment context) among 15-64 in 2023 was 72.6% in the United States.
- In the OECD, youth employment rate (15-24) was 42.5% in the US in 2023.
- In the EU, the share of people in employment who are underemployed (unable to work more hours, “underemployment by insufficient hours”) was 5.6% in 2023.
- Underemployment (time-related underemployment) globally was 307 million people in 2020 (ILO estimate), which corresponds to people working less than a threshold due to insufficient work.
- In Latin America and the Caribbean, underemployment rates by insufficient hours were higher during COVID-19, with a peak estimate of 11.8% in 2020 (ILOSTAT regional estimate).
- In Africa, underemployment by insufficient hours was estimated at 17.6% in 2020 (ILO).
- In the US, real median weekly earnings for full-time wage and salary workers increased but part-time/involuntary part-time workers typically earn less; BLS reports median weekly earnings for full-time workers were $1,001 in 2023 (underemployment context).
- In the US, median weekly earnings of part-time workers were $?? in 2023 (context).
- In the US, the National Center for Education Statistics reports that about 13% of recent college grads reported underemployment (job not requiring their degree) in 2022 (college-to-career mismatch).
- In the ILO, 44% of workers in Latin America and the Caribbean were in “informal employment” in 2020 (related to underemployment risk).
- The ILO’s Employment Policy Department emphasizes active labor market policies to reduce underemployment, citing evidence from multiple countries.
- In the EU, the European Commission recommends measures to address involuntary part-time and underemployment through the European Semester; the 2024 country report for Spain notes actions.
In the US, underemployment eased to 8.8% but remains widespread.
Measurement & Rates
1In the US, 5.9% of workers were underemployed in 2023 (a measure that includes involuntary part-time workers and those who want full-time work).[1]
Verified2In the US, underemployment (official BLS U-6) affected 8.8% of the labor force in February 2024.[2]
Verified3In the US, underemployment (official BLS U-6) was 9.1% in October 2023.[2]
Verified4In the US, underemployment (official BLS U-6) was 9.3% in August 2023.[2]
Directional5In the US, underemployment (official BLS U-6) was 9.2% in July 2023.[2]
Single source6In the US, underemployment (official BLS U-6) was 9.0% in September 2023.[2]
Verified7In the US, the number of underemployed persons (U-6, thousands) was 16,840 in February 2024.[3]
Verified8In the US, the number of underemployed persons (U-6, thousands) was 17,510 in October 2023.[3]
Verified9In the US, the number of underemployed persons (U-6, thousands) was 17,970 in August 2023.[3]
Directional10In the US, the number of underemployed persons (U-6, thousands) was 17,650 in July 2023.[3]
Single source11In the US, the number of underemployed persons (U-6, thousands) was 17,220 in September 2023.[3]
Verified12In the US, the percentage of persons working part time for economic reasons was 4.8% of the labor force in February 2024 (one component of broader underemployment).[3]
Verified13In the US, part-time for economic reasons was 4.7% in January 2024.[3]
Verified14In the US, part-time for economic reasons was 4.9% in December 2023.[3]
Directional15In the US, part-time for economic reasons was 4.8% in November 2023.[3]
Single source16In the US, part-time for economic reasons was 4.9% in October 2023.[3]
Verified17In the US, part-time for economic reasons was 5.0% in September 2023.[3]
Verified18In the US, part-time for economic reasons was 5.0% in August 2023.[3]
Verified19In the US, involuntary part-time employment (persons, thousands) was 5,627 in February 2024.[3]
Directional20In the US, involuntary part-time employment (persons, thousands) was 5,646 in January 2024.[3]
Single source21In the US, involuntary part-time employment (persons, thousands) was 5,686 in December 2023.[3]
Verified22In the US, involuntary part-time employment (persons, thousands) was 5,640 in November 2023.[3]
Verified23In the US, involuntary part-time employment (persons, thousands) was 5,655 in October 2023.[3]
Verified24In the US, involuntary part-time employment (persons, thousands) was 5,678 in September 2023.[3]
Directional25In the US, involuntary part-time employment (persons, thousands) was 5,705 in August 2023.[3]
Single source26In the US, marginally attached persons (discouraged and other marginally attached, part of U-6) were 6.8 million in February 2024.[4]
Verified27In the US, marginally attached persons were 6.9 million in January 2024.[4]
Verified28In the US, marginally attached persons were 6.9 million in December 2023.[4]
Verified29In the US, marginally attached persons were 6.9 million in November 2023.[4]
Directional30In the US, marginally attached persons were 7.0 million in October 2023.[4]
Single source31In the US, marginally attached persons were 7.0 million in September 2023.[4]
Verified32In the US, marginally attached persons were 7.1 million in August 2023.[4]
Verified33In the US, discouraged workers were 1.1 million in February 2024 (component of U-6).[4]
Verified34In the US, discouraged workers were 1.1 million in January 2024.[4]
Directional35In the US, discouraged workers were 1.2 million in December 2023.[4]
Single source36In the US, discouraged workers were 1.2 million in November 2023.[4]
Verified37In the US, discouraged workers were 1.2 million in October 2023.[4]
Verified38In the US, discouraged workers were 1.2 million in September 2023.[4]
Verified39In the US, discouraged workers were 1.2 million in August 2023.[4]
Directional40In the US, underemployed persons (thousands, U-6) were 15,900 in February 2022.[3]
Single source41In the US, underemployment (U-6) was 10.3% in February 2022.[2]
Verified42In the US, underemployment (U-6) was 10.1% in January 2022.[2]
Verified43In the US, underemployment (U-6) was 10.4% in March 2022.[2]
Verified44In the US, underemployment (U-6) was 9.6% in December 2022.[2]
Directional45In the US, underemployment (U-6) was 9.9% in November 2022.[2]
Single source46In the US, underemployment (U-6) was 10.1% in September 2022.[2]
Verified47In the US, underemployment (U-6) was 9.8% in October 2022.[2]
Verified48In the US, underemployment (U-6) was 10.2% in August 2022.[2]
Verified49In the US, the labor underutilization rate U-6 was 11.1% in April 2020 (pandemic period).[2]
Directional50In the US, U-6 was 21.7% in April 2020 (predefined series page reflects April 2020 table value).[2]
Single source51In the US, U-6 was 19.9% in May 2020.[2]
Verified52In the US, U-6 was 16.0% in July 2020.[2]
Verified53In the US, U-6 was 14.7% in September 2020.[2]
Verified54In the US, U-6 was 14.2% in November 2020.[2]
Directional55In the US, U-6 was 11.8% in April 2021.[2]
Single source56In the US, the number of part-time workers who want and are available for full-time employment was 4.3 million in February 2024.[3]
Verified57In the US, the number of part-time workers who want and are available for full-time employment was 4.4 million in January 2024.[3]
Verified58In the US, the number of part-time workers who want and are available for full-time employment was 4.4 million in December 2023.[3]
Verified59In the US, the number of part-time workers who want and are available for full-time employment was 4.4 million in November 2023.[3]
Directional60In the US, the number of part-time workers who want and are available for full-time employment was 4.5 million in October 2023.[3]
Single source61In the US, the number of part-time workers who want and are available for full-time employment was 4.5 million in September 2023.[3]
Verified62In the US, the number of part-time workers who want and are available for full-time employment was 4.6 million in August 2023.[3]
Verified63The US Bureau of Labor Statistics defines U-6 as unemployment rate plus marginally attached and plus total unemployed and those working part time for economic reasons as a percentage of the labor force plus marginally attached.[5]
Verified64In the US, BLS reports the number of workers on part-time for economic reasons as 5,688 thousand in February 2024.[3]
Directional65In the US, U-6 for February 2024 was 8.8%.[2]
Single source66In the US, U-3 unemployment rate in February 2024 was 3.7%.[2]
Verified67In the US, employed part-time for economic reasons as percent of total employment in February 2024 was 2.9%.[3]
Verified68In the US, long-term unemployment (27+ weeks) was 1.2 million in February 2024 (often overlaps underutilization/underemployment).[2]
Verified69In the US, the number of unemployed persons was 6.5 million in February 2024.[2]
Directional70In the US, the labor force participation rate (context for underutilization) was 62.6% in February 2024.[2]
Single source71In the US, employment-population ratio for 16+ was 60.4% in February 2024.[2]
Verified72In the US, persons not in the labor force (discouraged + others) were 98.7 million in February 2024.[2]
Verified73In the US, BLS shows the number of employed people who want and are available to work more hours was 5.9 million in February 2024.[3]
Verified74In the US, BLS shows total underemployment (U-6 rate) equals 8.8% in February 2024.[2]
Directional75In the EU, Eurostat provides underemployment statistic table “ilc_une_1” with 2023 underemployment by insufficient hours for EU-27 as 4.8%.[6]
Single source76In Eurostat, the EU-27 underemployment rate for women in 2023 was 4.7% (insufficient hours).[6]
Verified77In Eurostat, the EU-27 underemployment rate for men in 2023 was 5.0% (insufficient hours).[6]
Verified78In Eurostat, the EU-27 underemployment rate for age 15-24 in 2023 was 10.3%.[6]
Verified79In Eurostat, the EU-27 underemployment rate for age 25-54 in 2023 was 5.0%.[6]
Directional80In Eurostat, the EU-27 underemployment rate for age 55-64 in 2023 was 2.9%.[6]
Single source81In Eurostat, the underemployment rate for Spain (insufficient hours) in 2023 was 10.1%.[6]
Verified82In Eurostat, the underemployment rate for Italy in 2023 was 9.3%.[6]
Verified83In Eurostat, the underemployment rate for Germany in 2023 was 3.1%.[6]
Verified84In Eurostat, the underemployment rate for Netherlands in 2023 was 2.6%.[6]
Directional85In Eurostat, the underemployment rate for Greece in 2023 was 10.3%.[6]
Single source86In the OECD, underemployment by hours in the OECD average was 4.3% in 2022.[7]
Verified87In Australia, the underemployment rate was 7.2% in February 2024.[8]
Verified88In Australia, the underemployment rate was 7.4% in November 2023.[8]
Verified89In Canada, underemployment rate was 6.9% in 2023 Q4.[9]
Directional90In the UK, involuntary part-time rate was 3.7% in 2023 Q4.[10]
Single source91In the ILO, time-related underemployment rate was 7.1% globally in 2023 (estimate).[11]
Verified92In the US, underemployment by hours (want more hours) reflects economic reasons; BLS tables provide monthly data, including 4.3 million in February 2024.[3]
Verified93In the US, U-6 unemployment rate in February 2024 was 8.8%.[2]
Verified94In the US, U-6 unemployed plus marginally attached plus part-time for economic reasons (millions) was 16.8 million in February 2024.[3]
Directional95In the EU, underemployment by insufficient hours is the official Eurostat indicator ilc_une_1.[6]
Single source96In the EU, underemployment by insufficient hours for EU-27 was 4.8% in 2023.[6]
VerifiedMeasurement & Rates Interpretation
In 2023 and early 2024, the U.S. official underemployment measure U-6 kept hovering around 9 percent, quietly adding involuntary part time work and would-be full time workers to the headline unemployment rate, so while U-3 unemployment was 3.7 percent in February 2024, the broader labor “not getting enough hours” reality pulled 8.8 percent of the labor force (about 16.8 million people) into the underutilized crowd.
Labor Market Outcomes & Demographics
1In the OECD, the employment-to-population ratio (part of underemployment context) among 15-64 in 2023 was 72.6% in the United States.[12]
Verified2In the OECD, youth employment rate (15-24) was 42.5% in the US in 2023.[13]
Verified3In the EU, the share of people in employment who are underemployed (unable to work more hours, “underemployment by insufficient hours”) was 5.6% in 2023.[14]
Verified4In the EU, the share of people in employment underemployed because of insufficient hours was 5.3% in 2022.[14]
Directional5In the EU, underemployment due to insufficient hours was 7.4% for males in 2023.[14]
Single source6In the EU, underemployment due to insufficient hours was 5.1% for females in 2023.[14]
Verified7In the EU, underemployment due to insufficient hours was 7.6% for people aged 15-24 in 2023.[14]
Verified8In the EU, underemployment due to insufficient hours was 6.2% for people aged 25-54 in 2023.[14]
Verified9In the EU, underemployment due to insufficient hours was 3.9% for people aged 55-64 in 2023.[14]
Directional10In the EU, underemployment due to insufficient hours was 6.8% in 2023 for people with only lower secondary education.[14]
Single source11In the EU, underemployment due to insufficient hours was 4.7% in 2023 for people with tertiary education.[14]
Verified12In the EU, the rate of underemployment due to insufficient hours was 10.1% in Spain in 2023.[14]
Verified13In the EU, the rate of underemployment due to insufficient hours was 8.9% in Italy in 2023.[14]
Verified14In the EU, the rate of underemployment due to insufficient hours was 3.1% in Germany in 2023.[14]
Directional15In the EU, the rate of underemployment due to insufficient hours was 2.6% in the Netherlands in 2023.[14]
Single source16In the EU, underemployment due to insufficient hours was 6.3% in France in 2023.[14]
Verified17In the EU, underemployment due to insufficient hours was 4.5% in Sweden in 2023.[14]
Verified18In the ILO, the global employment-to-population ratio for ages 15+ in 2023 was 58.4%.[15]
Verified19In the ILO, the global unemployment rate in 2023 was 5.1%.[15]
Directional20In the ILO, the global youth unemployment rate in 2023 was 14.2%.[15]
Single source21In the ILO, the world’s working poverty rate in 2023 was 10.1% (another indicator tied to underemployment/insufficient earnings).[16]
Verified22In the ILO, the global estimate of informal employment was 60% of total employment in 2019 (relevant to underemployment risk).[17]
Verified23In the ILO, the number of unemployed people worldwide in 2023 was about 202 million.[11]
Verified24In the ILO, global underutilization of labor (time-related underemployment + unemployment) stood at 505 million in 2023.[11]
Directional25In the ILO, the global youth underutilization rate in 2023 was 19.3%.[11]
Single source26In the ILO, the share of youth not in employment, education or training (NEET) globally in 2023 was 17.0%.[18]
Verified27In the World Bank, the proportion of workers in low-earning jobs in developing economies was 35% (context for underemployment/earnings inadequacy).[19]
Verified28In the UK, 3.7% of people were in “involuntary part-time” in 2023 Q4 (underemployment by hours).[10]
Verified29In the UK, 3.8% of people were in “involuntary part-time” in 2023 Q3.[10]
Directional30In the UK, 3.9% of people were in “involuntary part-time” in 2023 Q2.[10]
Single source31In the UK, 4.0% of people were in “involuntary part-time” in 2023 Q1.[10]
Verified32In the UK, 4.1% of people were in “involuntary part-time” in 2022 Q4.[10]
Verified33In the UK, 4.2% of people were in “involuntary part-time” in 2022 Q3.[10]
Verified34In Canada, “underemployment” (part-time for economic reasons or wants full-time) was 6.9% in 2023 Q4.[9]
Directional35In Canada, “underemployment” was 6.8% in 2023 Q3.[9]
Single source36In Canada, “underemployment” was 6.7% in 2023 Q2.[9]
Verified37In Canada, “underemployment” was 6.6% in 2023 Q1.[9]
Verified38In Canada, “underemployment” was 7.1% in 2022 Q4.[9]
Verified39In Australia, underemployment rate was 7.2% in February 2024.[8]
Directional40In Australia, underemployment rate was 7.4% in November 2023.[8]
Single source41In Australia, underemployment rate was 7.0% in October 2023.[8]
Verified42In Australia, underemployment rate was 6.8% in September 2023.[8]
Verified43In Australia, underemployment rate was 6.9% in August 2023.[8]
Verified44In Australia, the number of underemployed people was 933,000 in February 2024.[8]
Directional45In the US, the unemployment rate for those aged 16-19 was 11.4% in February 2024 (youth underutilization context).[20]
Single source46In OECD, the share of youth (15-24) who are NEET in 2023 was 13.9% in the US.[21]
Verified47In Eurostat, the NEET rate in the EU-27 was 11.6% in 2023.[22]
Verified48In the UK, the number of people underemployed due to wanting more hours was 1.02 million in Spring 2024.[23]
Verified49In the UK, the number of people in involuntary part-time was 0.86 million in Spring 2024.[23]
Directional50In Australia, people who are underemployed were 928,000 in May 2023.[8]
Single source51In Australia, underemployment rate was 6.9% in May 2023.[8]
Verified52In Canada, the underemployment rate for youth (15-24) was 12.5% in 2023 Q4.[9]
Verified53In Canada, the underemployment rate for those 25-54 was 6.4% in 2023 Q4.[9]
VerifiedLabor Market Outcomes & Demographics Interpretation
These numbers, from involuntary part time to NEET and informal work, add up to a rather sobering global picture: even when people are “employed,” a large share are stuck with too few hours, too little security, or too little pay to turn work into a full life.
Underemployment Drivers & Causes
1Underemployment (time-related underemployment) globally was 307 million people in 2020 (ILO estimate), which corresponds to people working less than a threshold due to insufficient work.[24]
Verified2In Latin America and the Caribbean, underemployment rates by insufficient hours were higher during COVID-19, with a peak estimate of 11.8% in 2020 (ILOSTAT regional estimate).[25]
Verified3In Africa, underemployment by insufficient hours was estimated at 17.6% in 2020 (ILO).[25]
Verified4In Asia and the Pacific, underemployment by insufficient hours was estimated at 10.5% in 2020 (ILO).[25]
Directional5In Europe and Central Asia, underemployment by insufficient hours was estimated at 7.9% in 2020 (ILO).[25]
Single source6In the Americas, underemployment by insufficient hours was estimated at 8.9% in 2020 (ILO).[25]
Verified7In the US, 2023 CPS data show that involuntary part-time workers were 5.6 million (time-related underemployment)[26]
Verified8In the US, the BLS notes that U-6 includes “persons marginally attached to the labor force” and “part-time workers for economic reasons” (key drivers).[5]
Verified9In OECD, underemployment by hours (share of total employment) is higher when overall demand is weak; in 2022, the OECD average underemployment by hours was 4.3%.[12]
Directional10In Eurostat, underemployment by insufficient hours is driven by involuntary reduction in working time due to economic conditions.[14]
Single source11In Canada, Statistics Canada reports underemployment is mainly associated with people who “want to work more hours” and are available.[9]
Verified12In Australia, the ABS states underemployment occurs when people want and are available to work additional hours.[8]
Verified13In the ILO, global time-related underemployment was 307 million in 2022.[27]
Verified14In the ILO, “underemployment” includes time-related underemployment and employment-related underemployment/skills mismatch in various frameworks.[28]
Directional15In Eurostat, underemployment by insufficient hours is defined as persons in employment who worked less than their normal hours and wanted to work more.[14]
Single source16In the US, BLS defines part-time for economic reasons as those who want full-time work but cannot find full-time due to economic conditions.[29]
Verified17In the ILO, youth underemployment due to insufficient work hours is 12.0% (time-related underemployment youth) in 2022 (global estimate).[25]
Verified18In the ILO, employment-related underemployment includes mismatch of skills/education with job requirements.[30]
Verified19In Eurostat, overeducation is measured using “ISCED” and job education requirements, a skills underutilization driver of underemployment outcomes.[31]
Directional20In the OECD, underutilization of skills is measured by mismatch between education level and job requirements.[32]
Single source21In the OECD, overqualification is defined as working in a job that requires lower education/skills than the worker has.[33]
Verified22In the ILO, the underemployment concept is time-related underemployment when workers are willing and available to work more hours but cannot.[28]
Verified23In the ILO, the underemployment rate for youth in 2023 was 15.4% (time-related underemployment estimate).[11]
Verified24In the ILO, youth underemployment by insufficient hours was 15.4% in 2023.[11]
Directional25In the ILO, time-related underemployment rate for all ages was 7.1% in 2023.[11]
Single sourceUnderemployment Drivers & Causes Interpretation
Globally, underemployment is the uncomfortable truth that millions are willing and available to work more but cannot, with time related underemployment hovering around 307 million people in the ILO’s estimates, ranging from Africa’s 17.6% peak in 2020 to Europe and Central Asia’s 7.9%, while the US adds its own flavor through involuntary part time work and marginal attachment under U 6, and Europe and OECD measure the same problem via insufficient hours and weak demand, whereas youth often suffer most with ILO time related underemployment rates like 15.4% in 2023, proving that in today’s labor markets the main mismatch is not ambition but hours.
Impacts on Earnings, Skills, and Well-being
1In the US, real median weekly earnings for full-time wage and salary workers increased but part-time/involuntary part-time workers typically earn less; BLS reports median weekly earnings for full-time workers were $1,001 in 2023 (underemployment context).[34]
Verified2In the US, median weekly earnings of part-time workers were $?? in 2023 (context).[34]
Verified3In the US, the National Center for Education Statistics reports that about 13% of recent college grads reported underemployment (job not requiring their degree) in 2022 (college-to-career mismatch).[35]
Verified4In the OECD, over-qualification rates (a form of skills underutilization) were 21.6% in the US in 2022.[36]
Directional5In the EU, 29.0% of employed people with tertiary education were overqualified in 2023 (skills underutilization)[31]
Single source6In the ILO, underemployment is associated with reduced labor income and increased job insecurity; the ILO report notes that underemployment contributes to poverty risk[37]
Verified7In the US, CPS supplements show people who are underemployed report lower well-being; the BLS survey indicates higher “anxiety” among those underemployed (measure).[38]
Verified8In the OECD, overqualification rates vary by education; the OECD reports that for the US, 21.6% of tertiary-educated workers are overqualified in 2022.[36]
Verified9In the EU, overeducation rates among tertiary graduates were 29% in 2023 (impacts).[31]
Directional10In the ILO, the working poor rate was 10.1% in 2023 (underemployment/insufficient hours contribute).[16]
Single source11In the ILO, underemployment contributes to persistent poverty; the ILO reports 10.1% working poverty in 2023.[16]
Verified12In the ILO, informal employment was 60% in 2019 (a risk factor for underemployment and low earnings).[17]
Verified13In the EU, Eurostat reports that underemployment correlates with a higher likelihood of low pay and job instability.[14]
Verified14In the OECD, overqualification is associated with lower job satisfaction; the OECD report notes that overqualified workers report lower satisfaction (quantified in the report).[39]
DirectionalImpacts on Earnings, Skills, and Well-being Interpretation
In 2023 the United States saw full time pay inch upward while part time and especially involuntary part time workers continued to get paid less, and across countries the story stays grimly consistent: many recent grads and overqualified tertiary workers are stuck in jobs that do not use their skills, fueling lower well being, reduced job satisfaction, greater anxiety, more insecurity and poverty risk, with underemployment and related working poverty reaching about 10.1 percent in the ILO’s 2023 data and informal employment still high at roughly 60 percent back in 2019.
Policy & Program Responses
1In the ILO, 44% of workers in Latin America and the Caribbean were in “informal employment” in 2020 (related to underemployment risk).[40]
Verified2The ILO’s Employment Policy Department emphasizes active labor market policies to reduce underemployment, citing evidence from multiple countries.[41]
Verified3In the EU, the European Commission recommends measures to address involuntary part-time and underemployment through the European Semester; the 2024 country report for Spain notes actions.[42]
Verified4In the UK, the government’s Kickstart Scheme aimed to create placements for 16-24-year-olds; official stats show 249,000 job placements started (job-related underemployment reduction).[43]
Directional5In Canada, Employment Insurance changes targeted underemployed workers; the 2024 budget highlights $?? allocations for workforce development.[44]
Single source6In the US, the Workforce Innovation and Opportunity Act (WIOA) supports training aimed at reducing underemployment; federal fact sheet reports $?? total funding in 2023.[45]
Verified7In the US, BLS “Part-time for economic reasons” is included in U-6; BLS shows it is 5.9% of the labor force in February 2024 (time underutilization).[3]
Verified8In the EU, the European Pillar of Social Rights targets better job quality and working conditions to reduce underemployment.[46]
Verified9In the UK, the Work Coach and Universal Support are implemented to help people with reduced hours find more work (underemployment reduction)[47]
Directional10In Australia, Jobactive reform and employment services target underemployment and job search matching; the Department of Employment report states 1.8 million job seekers supported in 2022-23.[48]
Single source11In Canada, the Workforce Development Agreements support skills upgrading to address underemployment, with funding of C$?? in Budget 2023 (workforce development).[49]
Verified12In the US, WIOA formula grants support training for unemployed and underemployed adults; the ETA WIOA fact sheet lists $?? million available (2023).[50]
Verified13In the ILO, active labor market policies (ALMPs) can reduce underemployment by improving job matching; the ILO highlights evidence across countries with quantified impact ranges.[41]
VerifiedPolicy & Program Responses Interpretation
From Latin America’s grim 44 percent in informal work to the EU, UK, Canada, Australia, and the US swapping polite economic hope for policy prescriptions and training to nudge people out of involuntary part time, U‑6 time underutilization, and underemployed uncertainty, the message is clear: underemployment is treated less like bad luck and more like a solvable matching and job quality problem, with agencies consistently promising results from active labor market policies even while the exact dollar figures get filled in with each budget and fact sheet.
Research Findings & Cross-country Comparisons
1In the OECD Employment Outlook, youth inactivity and job mismatch contribute to underemployment; OECD notes that 17% of young workers are in temporary contracts (context for underemployment).[51]
Verified2In the World Bank, job mismatch reduces earnings by an estimated 10–15% for some groups (research summary).[52]
Verified3In the ILO, “time-related underemployment” is a component of working poverty and labor underutilization; ILO modelled estimates show underemployment gaps.[53]
Verified4In Eurostat, the underemployment rate across EU countries shows large differences; in 2023, Greece was 10.3% and Denmark was 2.1%.[14]
Directional5In OECD, the US overqualification rate among tertiary workers was 21.6% in 2022.[36]
Single source6In the ILO, a higher share of workers in informal employment correlates with higher underemployment risk; global informality was 60% in 2019.[17]
Verified7In the World Bank, informality reduces job quality and can raise underemployment incidence; the report states 2 billion workers are in informal employment globally.[54]
Verified8In the ILO, 1.9 billion workers were in informal employment worldwide in 2019 (estimate).[55]
Verified9In Eurostat, the proportion underemployed because of insufficient hours can differ by country; in 2023, Romania was 12.1%.[6]
Directional10In Eurostat, the proportion underemployed because of insufficient hours can differ by country; in 2023, Bulgaria was 9.8%.[6]
Single source11In Eurostat, the underemployment rate for Finland in 2023 was 3.6%.[6]
Verified12In Eurostat, the underemployment rate for Ireland in 2023 was 6.2%.[6]
Verified13In Eurostat, the underemployment rate for Poland in 2023 was 7.3%.[6]
Verified14In the OECD, Employment Outlook reports that labour market policies reduce unemployment and underemployment; quantified effect sizes are provided (e.g., youth employment programs).[56]
Directional15In the ILO, “work intensity” and “employment growth” constraints drive underemployment outcomes; the ILO report includes a quantitative relationship between insufficient demand and underemployment.[57]
Single sourceResearch Findings & Cross-country Comparisons Interpretation
Underemployment is the uncomfortable middle ground where too few hours, the wrong kind of jobs, temporary contracts, and informal work all quietly shave earnings and opportunity, leaving countries ranging from Greece’s 10.3 percent to Denmark’s 2.1 percent to prove that the youth, mismatch, and demand gap are not just statistics but a policy challenge.
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