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Unemployment Examples . Neither of the two is better, but underemployment is less of a devil than unemployment. College graduates who were not able to get the desired jobs may find tough after being underemployed for some time to find the right jobs. Here we discuss some of them:When many workers are living in similar situations, the condition can be termed as underemployment.The underemployment rate is calculated by dividing the number of underemployed individuals by the number of individuals in the workforce. This can create imbalances in an economy like a rich-poor divide, where few highly skilled workers will be much richer than the average underemployed.There can also be a consumption slowdown, people may keep away from big-ticket purchases and the economy may stop humming and lose its momentum resulting in a prolonged slowdown or recession.While workers still remain employed, though sub-optimally, in underemployment, they are completely out of jobs in case of unemployment. In both cases, these individuals are underutilized by the economy as they, in theory, can provide a greater benefit to the overall economy.Underemployment is calculated by dividing the number of underemployed individuals with the total number of workers in a labor force.Business cycles can also result in underemployment. Those who do not have the resources or means to retrain themselves are generally susceptible to underemployment. There could be many reasons for this including economic downturns, business slowdowns or structural technological changes. Also check our tips on how to write a research paper, see the lists of research paper topics, and browse research paper examples. For example, an individual with an engineering degree working as a pizza delivery man as his main source of income … People are out of jobs, which are already scarce. Part-time workers are an example of this. Examples of underemployment and inadequate employment . Seasonal staffing trends, especially in the hospitality industry, can result in more workers opting for the easiest available job and staying on. Some workers may completely drop off from the workforce and may not return to work, choosing unemployment over underemployment.Consider a country’s economy is hit hard by an economic downturn. Underemployment can be caused due to several factors. It refers to the employment situation in which an individual is unable to find a job in their chosen field. Source: ABS, Labour force, Oct 2018, cat. Here we discuss the formula to calculate underemployment rate along with its examples, types, causes & effects. Herein, while the graduate can be working in a much higher paying job which would have suited his skill set, he has to work in a sub-optimal environment to make ends meet.While some level of underemployment will always be prevalent in an economy, it is not in favour of a country’s economy if it is sustained and a lot of workers are working on sub-optimal capacity. The calculation is similar to that of unemployment, with a different numerator.This is visible when workers are not able to secure a full-time job in their desired role and have to work part-time or work multiple part-time jobs to pay their bills. Competition from newer graduates will also impact their chances to get jobs they are skilled in.Some workers may permanently down trade and chose to remain underemployed for the rest of their lives putting themselves in further misery. People are out of jobs, which are already scarce. Also, an individual who is working part-time at an office job but would prefer to instead work full-time is considered underemployed. The period during and after a recession, when companies downsize and lay off qualified workers, is characterized by underemployment. This sample Underemployment Rate Research Paper is published for educational and informational purposes only.