Underemployment occurs when people _____.
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do not want to work
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are working in a lazy manner
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are working less than what they are capable of doing
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are not paid for their work
Reveal answer
Fill a bubble to check yourself
C
Correct answer
Explanation
Underemployment may be defined as “a situation in which the person is capable of working both physically and mentally at the existing wage rate, but does not get a job to work”. Open underemployment is a situation wherein a large section of the labour force does not get a job that may yield them regular income. This type of unemployment can be seen and counted in terms of the number of unemployed persons. The labour force expands at a faster rate than the growth rate of economy. Therefore, all people do not get jobs.