All forms of underemployment have effect on the economy and the health of the business community. Long-term underemployment can also cover up the truth behind the employment situations. When nations collect employment statistics, they usually come up with a base number of “unemployed” individuals, using that number to judge the health of the job market. This number does not include part-time workers looking for full-time jobs, as they are considered employed, and it also doesn’t reflect workers who are underpaid, considering their qualifications.

　　In the first sense, underemployment is a common problem in many of the developed world. Many people with college degrees are working in low-level or service industry jobs because the job market is full.

　　The issue of part-time employment is also very serious. Some people are forced into part-time jobs, while others find themselves taking a part-time job because nothing else is available, even though they really need to work full-time. This problem is especially common in areas with seasonal employment, where employers find it cheaper to maintain and lay off part-time staffs, rather than keeping a full staff at all times.

　　In the sense of shortage of workers, underemployment appears in a variety of situations. Some companies maintain a full staff to be prepared for seasonal work, or to keep well-trained, qualified workers so that they will be available when needed. Labor laws and union pressures may also prevent a company from cutting down on staff or working hours, leading to a situation in which people report to work, but have nothing to do.

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