Are You Underemployed?

With the U.S. unemployment rate on the rise (and expected to rise higher), that seems to be the Big News for now.

But what about underemployment?This is probably becoming a problem for many people as well — especially as the economy leads to cutbacks in various workplaces.

What does it mean to be underemployed?

Underemployment occurs when your skills are not properly utilized. If you have the education and skills to work in a higher paying job, but you are working in a low-skill, lower paying job, you are considered underemployed. Underemployment is also defined as someone working part-time when he or she would prefer to work full-time.

Right now, companies are cutting back in some areas. Some workers are finding their hours cut. Others are being let go and are forced to take jobs that do not fit their skills. This in term affects household budgets. And, while underemployment is not as devastating as unemployment, at least there are federal unemployment benefits to help you muddle through until you find a job.

For many of the hard-working, underemployed folks out there, though, there is no such help. When hours are cut, or a newer, lower-paying job is found, often the underemployed finds that he or she makes too much to qualify for assistance, but not enough to maintain the same quality of life.

image credit: sxc.hu